business plans benefits

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

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Table of Contents

What is a business plan, the advantages of having a business plan, the types of business plans, the key elements of a business plan, best business plan software, common challenges of writing a business plan, become an expert business planner, business planning: it’s importance, types and key elements.

Every year, thousands of new businesses see the light of the day. One look at the  World Bank's Entrepreneurship Survey and database  shows the mind-boggling rate of new business registrations. However, sadly, only a tiny percentage of them have a chance of survival.   

According to the Bureau of Labor Statistics, about 20% of small businesses fail in their first year, about 50% in their fifth year.

Research from the University of Tennessee found that 44% of businesses fail within the first three years. Among those that operate within specific sectors, like information (which includes most tech firms), 63% shut shop within three years.

Several other statistics expose the abysmal rates of business failure. But why are so many businesses bound to fail? Most studies mention "lack of business planning" as one of the reasons.

This isn’t surprising at all. 

Running a business without a plan is like riding a motorcycle up a craggy cliff blindfolded. Yet, way too many firms ( a whopping 67%)  don't have a formal business plan in place. 

It doesn't matter if you're a startup with a great idea or a business with an excellent product. You can only go so far without a roadmap — a business plan. Only, a business plan is so much more than just a roadmap. A solid plan allows a business to weather market challenges and pivot quickly in the face of crisis, like the one global businesses are struggling with right now, in the post-pandemic world.  

But before you can go ahead and develop a great business plan, you need to know the basics. In this article, we'll discuss the fundamentals of business planning to help you plan effectively for 2021.  

Now before we begin with the details of business planning, let us understand what it is.

No two businesses have an identical business plan, even if they operate within the same industry. So one business plan can look entirely different from another one. Still, for the sake of simplicity, a business plan can be defined as a guide for a company to operate and achieve its goals.  

More specifically, it's a document in writing that outlines the goals, objectives, and purpose of a business while laying out the blueprint for its day-to-day operations and key functions such as marketing, finance, and expansion.

A good business plan can be a game-changer for startups that are looking to raise funds to grow and scale. It convinces prospective investors that the venture will be profitable and provides a realistic outlook on how much profit is on the cards and by when it will be attained. 

However, it's not only new businesses that greatly benefit from a business plan. Well-established companies and large conglomerates also need to tweak their business plans to adapt to new business environments and unpredictable market changes. 

Before getting into learning more about business planning, let us learn the advantages of having one.

Since a detailed business plan offers a birds-eye view of the entire framework of an establishment, it has several benefits that make it an important part of any organization. Here are few ways a business plan can offer significant competitive edge.

• Sets objectives and benchmarks: Proper planning helps a business set realistic objectives and assign stipulated time for those goals to be met. This results in long-term profitability. It also lets a company set benchmarks and Key Performance Indicators (KPIs) necessary to reach its goals. 
• Maximizes resource allocation: A good business plan helps to effectively organize and allocate the company’s resources. It provides an understanding of the result of actions, such as, opening new offices, recruiting fresh staff, change in production, and so on. It also helps the business estimate the financial impact of such actions.
• Enhances viability: A plan greatly contributes towards turning concepts into reality. Though business plans vary from company to company, the blueprints of successful companies often serve as an excellent guide for nascent-stage start-ups and new entrepreneurs. It also helps existing firms to market, advertise, and promote new products and services into the market.
• Aids in decision making: Running a business involves a lot of decision making: where to pitch, where to locate, what to sell, what to charge — the list goes on. A well thought-out business plan provides an organization the ability to anticipate the curveballs that the future could throw at them. It allows them to come up with answers and solutions to these issues well in advance.
• Fix past mistakes: When businesses create plans keeping in mind the flaws and failures of the past and what worked for them and what didn’t, it can help them save time, money, and resources. Such plans that reflects the lessons learnt from the past offers businesses an opportunity to avoid future pitfalls.
• Attracts investors: A business plan gives investors an in-depth idea about the objectives, structure, and validity of a firm. It helps to secure their confidence and encourages them to invest. 

Now let's look at the various types involved in business planning.

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Business plans are formulated according to the needs of a business. It can be a simple one-page document or an elaborate 40-page affair, or anything in between. While there’s no rule set in stone as to what exactly a business plan can or can’t contain, there are a few common types of business plan that nearly all businesses in existence use.  

Here’s an overview of a few fundamental types of business plans. 

• Start-up plan: As the name suggests, this is a documentation of the plans, structure, and objections of a new business establishments. It describes the products and services that are to be produced by the firm, the staff management, and market analysis of their production. Often, a detailed finance spreadsheet is also attached to this document for investors to determine the viability of the new business set-up.
• Feasibility plan: A feasibility plan evaluates the prospective customers of the products or services that are to be produced by a company. It also estimates the possibility of a profit or a loss of a venture. It helps to forecast how well a product will sell at the market, the duration it will require to yield results, and the profit margin that it will secure on investments. 
• Expansion Plan: This kind of plan is primarily framed when a company decided to expand in terms of production or structure. It lays down the fundamental steps and guidelines with regards to internal or external growth. It helps the firm to analyze the activities like resource allocation for increased production, financial investments, employment of extra staff, and much more.
• Operations Plan: An operational plan is also called an annual plan. This details the day-to-day activities and strategies that a business needs to follow in order to materialize its targets. It outlines the roles and responsibilities of the managing body, the various departments, and the company’s employees for the holistic success of the firm.
• Strategic Plan: This document caters to the internal strategies of the company and is a part of the foundational grounds of the establishments. It can be accurately drafted with the help of a SWOT analysis through which the strengths, weaknesses, opportunities, and threats can be categorized and evaluated so that to develop means for optimizing profits.

There is some preliminary work that’s required before you actually sit down to write a plan for your business. Knowing what goes into a business plan is one of them. 

Here are the key elements of a good business plan:

• Executive Summary: An executive summary gives a clear picture of the strategies and goals of your business right at the outset. Though its value is often understated, it can be extremely helpful in creating the readers’ first impression of your business. As such, it could define the opinions of customers and investors from the get-go.  
• Business Description: A thorough business description removes room for any ambiguity from your processes. An excellent business description will explain the size and structure of the firm as well as its position in the market. It also describes the kind of products and services that the company offers. It even states as to whether the company is old and established or new and aspiring. Most importantly, it highlights the USP of the products or services as compared to your competitors in the market.
• Market Analysis: A systematic market analysis helps to determine the current position of a business and analyzes its scope for future expansions. This can help in evaluating investments, promotions, marketing, and distribution of products. In-depth market understanding also helps a business combat competition and make plans for long-term success.
• Operations and Management: Much like a statement of purpose, this allows an enterprise to explain its uniqueness to its readers and customers. It showcases the ways in which the firm can deliver greater and superior products at cheaper rates and in relatively less time. 
• Financial Plan: This is the most important element of a business plan and is primarily addressed to investors and sponsors. It requires a firm to reveal its financial policies and market analysis. At times, a 5-year financial report is also required to be included to show past performances and profits. The financial plan draws out the current business strategies, future projections, and the total estimated worth of the firm.

The importance of business planning is it simplifies the planning of your company's finances to present this information to a bank or investors. Here are the best business plan software providers available right now:

• Business Sorter

The importance of business planning cannot be emphasized enough, but it can be challenging to write a business plan. Here are a few issues to consider before you start your business planning:

• Create a business plan to determine your company's direction, obtain financing, and attract investors.
• Identifying financial, demographic, and achievable goals is a common challenge when writing a business plan.
• Some entrepreneurs struggle to write a business plan that is concise, interesting, and informative enough to demonstrate the viability of their business idea.
• You can streamline your business planning process by conducting research, speaking with experts and peers, and working with a business consultant.

Whether you’re running your own business or in-charge of ensuring strategic performance and growth for your employer or clients, knowing the ins and outs of business planning can set you up for success. 

Be it the launch of a new and exciting product or an expansion of operations, business planning is the necessity of all large and small companies. Which is why the need for professionals with superior business planning skills will never die out. In fact, their demand is on the rise with global firms putting emphasis on business analysis and planning to cope with cut-throat competition and market uncertainties.

While some are natural-born planners, most people have to work to develop this important skill. Plus, business planning requires you to understand the fundamentals of business management and be familiar with business analysis techniques . It also requires you to have a working knowledge of data visualization, project management, and monitoring tools commonly used by businesses today.   

Simpliearn’s Executive Certificate Program in General Management will help you develop and hone the required skills to become an extraordinary business planner. This comprehensive general management program by IIM Indore can serve as a career catalyst, equipping professionals with a competitive edge in the ever-evolving business environment.

What Is Meant by Business Planning?

Business planning is developing a company's mission or goals and defining the strategies you will use to achieve those goals or tasks. The process can be extensive, encompassing all aspects of the operation, or it can be concrete, focusing on specific functions within the overall corporate structure.

What Are the 4 Types of Business Plans?

The following are the four types of business plans:

Operational Planning

This type of planning typically describes the company's day-to-day operations. Single-use plans are developed for events and activities that occur only once (such as a single marketing campaign). Ongoing plans include problem-solving policies, rules for specific regulations, and procedures for a step-by-step process for achieving particular goals.

Strategic Planning

Strategic plans are all about why things must occur. A high-level overview of the entire business is included in strategic planning. It is the organization's foundation and will dictate long-term decisions.

Tactical Planning

Tactical plans are about what will happen. Strategic planning is aided by tactical planning. It outlines the tactics the organization intends to employ to achieve the goals outlined in the strategic plan.

Contingency Planning

When something unexpected occurs or something needs to be changed, contingency plans are created. In situations where a change is required, contingency planning can be beneficial.

What Are the 7 Steps of a Business Plan?

The following are the seven steps required for a business plan:

Conduct Research

If your company is to run a viable business plan and attract investors, your information must be of the highest quality.

Have a Goal

The goal must be unambiguous. You will waste your time if you don't know why you're writing a business plan. Knowing also implies having a target audience for when the plan is expected to get completed.

Create a Company Profile

Some refer to it as a company profile, while others refer to it as a snapshot. It's designed to be mentally quick and digestible because it needs to stick in the reader's mind quickly since more information is provided later in the plan.

Describe the Company in Detail

Explain the company's current situation, both good and bad. Details should also include patents, licenses, copyrights, and unique strengths that no one else has.

Create a marketing plan ahead of time.

A strategic marketing plan is required because it outlines how your product or service will be communicated, delivered, and sold to customers.

Be Willing to Change Your Plan for the Sake of Your Audience

Another standard error is that people only write one business plan. Startups have several versions, just as candidates have numerous resumes for various potential employers.

Incorporate Your Motivation

Your motivation must be a compelling reason for people to believe your company will succeed in all circumstances. A mission should drive a business, not just selling, to make money. That mission is defined by your motivation as specified in your business plan.

What Are the Basic Steps in Business Planning?

These are the basic steps in business planning:

Summary and Objectives

Briefly describe your company, its objectives, and your plan to keep it running.

Services and Products

Add specifics to your detailed description of the product or service you intend to offer. Where, why, and how much you plan to sell your product or service and any special offers.

Conduct research on your industry and the ideal customers to whom you want to sell. Identify the issues you want to solve for your customers.

Operations are the process of running your business, including the people, skills, and experience required to make it successful.

How are you going to reach your target audience? How you intend to sell to them may include positioning, pricing, promotion, and distribution.

Consider funding costs, operating expenses, and projected income. Include your financial objectives and a breakdown of what it takes to make your company profitable. With proper business planning through the help of support, system, and mentorship, it is easy to start a business.

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Nine reasons why you need a business plan

Building a great business plan helps you plan, strategize and succeed. Presented by Chase for Business .

Making the decision to create a new business is an exciting yet stressful experience. Starting a business involves many tasks and obstacles, so it’s important to focus before you take action. A solid business plan can provide direction, help you attract investors and ensure you maintain momentum.

No matter what industry you plan on going into, a business plan is the first step for any successful enterprise. Building your business plan helps you figure out where you want your business to go and identify the necessary steps to get you there. This is a key document for your company to both guide your actions and track your progress.

What is the purpose of a business plan?

Think of a business plan like a roadmap. It enables you to solve problems and make key business decisions, such as marketing and competitive analysis, customer and market analysis and logistics and operations plans.

It can also help you organize your thoughts and goals, as well as give you a better idea of how your company will work. Good planning is often the difference between success and failure.

Here are nine reasons your company needs a business plan.

1. Prove your idea is viable

Through the process of writing a business plan, you can assess whether your company will be successful. Understanding market dynamics, as well as competitors, will help determine if your idea is viable.

This is also the time to develop financial projections for your business plan, like estimated startup costs, a profit and loss forecast, a break-even analysis and a cash flow statement . By taking time to investigate the viability of your idea, you can build goals and strategies to support your path to success.

A proper business plan proves to all interested parties—including potential investors, customers, employees, partners and most importantly yourself — that you are serious about your business.

2. Set important goals

As a business owner, the bulk of your time will mostly likely be spent managing day-to-day tasks. As a result, it might be hard to find time after you launch your business to set goals and milestones. Writing a business plan allows you to lay out significant goals for yourself ahead of time for three or even five years down the road. Create both short- and long-term business goals. 

3. Reduce potential risks

Prevent your business from falling victim to unexpected dangers by researching before you break ground. A business plan opens your eyes to potential risks that your business could face. Don’t be afraid to ask yourself the hard questions that may need research and analysis to answer. This is also good practice in how your business would actually manage issues when they arise. Incorporate a contingency plan that identifies risks and how you would respond to them effectively.

The most common reasons businesses fail include:

• Lack of capital
• Lack of market impact or need
• Unresearched pricing (too high or low)
• Explosive growth that drains all your capital
• Stiff competition

Lack of capital is the most prevalent reason why businesses fail. To best alleviate this problem, take time to determine how your business will generate revenue. Build a comprehensive model to help mitigate future risks and long-term pain points. This can be turned into a tool to manage growth and expansion.

4. Secure investments

Whether you’re planning to apply for an SBA loan , build a relationship with angel investors or seek venture capital funding, you need more than just an elevator pitch to get funding. All credible investors will want to review your business plan. Although investors will focus on the financial aspects of the plan, they will also want to see if you’ve spent time researching your industry, developed a viable product or service and created a strong marketing strategy.

While building your business plan, think about how much raised capital you need to get your idea off the ground. Determine exactly how much funding you’ll need and what you will use it for. This is essential for raising and employing capital.

5. Allot resources and plan purchases

You will have many investments to make at the launch of your business, such as product and services development, new technology, hiring, operations, sales and marketing. Resource planning is an important part of your business plan. It gives you an idea of how much you’ll need to spend on resources and it ensures your business will manage those resources effectively.  

A business plan provides clarity about necessary assets and investment for each item. A good business plan can also determine when it is feasible to expand to a larger store or workspace.

In your plan, include research on new products and services, where you can buy reliable equipment and what technologies you may need. Allocate capital and plan how you’ll fund major purchases, such as with a Chase small business checking account or business credit card .

6. Build your team

From seasoned executives to skilled labor, a compelling business plan can help you attract top-tier talent, ideally inspiring management and employees long after hiring. Business plans include an overview of your executive team as well as the different roles you need filled immediately and further down the line.

Small businesses often employ specialized consultants, contractors and freelancers for individual tasks such as marketing, accounting and legal assistance. Sharing a business plan helps the larger team work collectively in the same direction. 

This will also come into play when you begin working with any new partners. As a new business, a potential partner may ask to see your business plan. Building partnerships takes time and money, and with a solid business plan you have the opportunity to attract and work with the type of partners your new business needs.

7. Share your vision 

When you start a business, it's easy to assume you'll be available to guide your team. A business plan helps your team and investors understand your vision for the company. Your plan will outline your goals and can help your team make decisions or take action on your behalf. Share your business plan with employees to align your full staff toward a collective goal or objective for the company.  Consider employee and stakeholder ownership as a compelling and motivating force. 

8. Develop a marketing strategy

A marketing strategy details how you will reach your customers and build brand awareness. The clearer your brand positioning is to investors, customers, partners and employees, the more successful your business will be.

Important questions to consider as you build your marketing strategy include:

• What industry segments are we pursuing?
• What is the value proposition of the products or services we plan to offer?
• Who are our customers?
• How will we retain our customers and keep them engaged with our products or services and marketing?
• What is our advertising budget?
• What price will we charge?
• What is the overall look and feel of our brand? What are our brand guidelines?
• Will we need to hire marketing experts to help us create our brand?
• Who are our competitors? What marketing strategies have worked (or not worked) for them?

With a thoughtful marketing strategy integrated into your business plan, your company goals are significantly more in reach.

9. Focus your energy

Your business plan determines which areas of your business to focus on while also avoiding possible distractions. It provides a roadmap for critical tradeoffs and resource allocation.

As a business owner, you will feel the urge to solve all of your internal and customers’ problems, but it is important to maintain focus. Keep your priorities at the top of your mind as you set off to build your company.

As a small business owner, writing a business plan should be one of your first priorities. Read our checklist for starting a business, and learn how to take your business from a plan to reality. When you’re ready to get started, talk with a Chase business banker to open a Chase business checking or savings account today.

For Informational/Educational Purposes Only: The views expressed in this article may differ from other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendation for any individual. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.

JPMorgan Chase Bank, N.A. Member FDIC. Equal Opportunity Lender, ©2023 JPMorgan Chase & Co

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Business Plan Benefits for Your Small Business

Do you need a business plan for your small business? If you are seeking outside funding, you are required to present a formal proposal. But, the benefits of a business plan go beyond finding lenders.

A strategy can help you grow your company. Think of the concept like this:

If you’re like most people, you probably wouldn’t buy a car without doing some research. You would choose one after weighing the good and bad traits of different vehicles. You’d make sure the car starts before signing the title.

It’s a similar situation with your business venture. You need to be sure your business has the potential to be a worthwhile investment.

A business plan can be a simple outline or a detailed document. Your plan is a roadmap that steers you in the right direction. A business plan is not a promise you have to keep over time.

Download our free guide on what you need to start your business to learn more, plus get a checklist!

4 Business plan benefits

So what can a solid strategy for building your business help you accomplish? Here are four benefits of a business plan:

1. You can get outside funding

To get funding from lenders or investors, you need to show a business plan. Lenders want to see that they are investing in a company that will last and grow. You must give lenders a plan detailing the steps you will take as a business owner.

Even if your lenders are friends and family, it’s good to organize your ideas.

A business plan helps others understand your passion and see where their money is going. Communicating clear ideas to investors helps prove you can get your business off the ground and build it up.

You’ll need to know how to write an exit strategy for a business plan as well. A thriving business is no good to your investors if they have no way to eventually cash in on their investment.

2. You gain an understanding of your market

One key piece of your business plan is knowing how to conduct a market analysis . When you conduct this study, you look at your industry, target market, and competitors. You can see trends in decisions that could help, or harm, your business.

Another great benefit of a business plan is learning from someone else’s mistakes. Learning from other’s mistakes is less time consuming and financially burdening than learning from your own mistakes. The more prepared you are to deal with the aspects of your market, the easier it might be to handle issues down the road.

3. You focus your strategies

The entrepreneur in you is eager to dive right into business. But, having a business plan can help you pinpoint the best strategies for your company. Before you take the plunge into ownership, work out the important details.

This business plan benefit also helps you prioritize tasks. By looking at the big picture of your business, you can decide which challenges to tackle first. A business plan could also help you choose which tasks to address later.

4. You can check the financial numbers

Business plans include financial projections for your company. While the projections are not a peek inside a crystal ball, they do represent a forecast of your financial health. Planning for expenses will be important for keeping operations steady.

Cash flow projections help you see if your goals are possible. They also point out trends that could potentially harm your business. The faster you spot upcoming issues, the faster you can correct problems.

Be sure that your projections match up to your expectations. Have you set aside enough money to do the tasks at hand? Double-check your numbers so you are prepared to handle your finances in the future.

Business plan parts

Here are a few items you could include in your business plan:

• Company description telling how you will meet your customers’ needs.
• A market analysis that talks about your industry, target market, and competitors.
• Services or products you will sell.
• Marketing plans for generating sales.
• Funding requests with a budget outlined.
• Financial projections from your financial statements.

Your business plan could be anything between a basic outline to a 40-page presentation. If the plan is just to keep you on track, you can cover the areas you think need to be addressed. The benefits of a business plan are not limited to a specific length, but can be tailored to your needs.

If you write your business plan for lenders, you will want a more formal, detailed plan. Include a table of contents, a summary of your business, and an appendix with supporting documents.

Does your business plan include a system for tracking finances? Our accounting software is an easy-to-use program for small business owners and their accountants. Try it for free today!

This article has been updated from its original publication date of February 19, 2016.

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How to Build a Great Employee Benefits Package

A solid employee benefits package can help retain your best employees and attract top talent. Here’s how to build one.

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When employers talk about their “compensation packages,” they don’t mean just salary. In addition to employees’ pay, these packages typically include a number of other perks, like health insurance, retirement plans and paid time off (PTO). If you want to build a truly desirable benefits package to keep your employees happy and attract top talent, this guide is for you.

What is an employee benefits package?

An employee benefits package is a set of perks given to employees in addition to their salary or wages. Often called “nonwage benefits,” they encompass many tools employees can use to take care of themselves and their families, establish a healthy work-life balance, save money and more.

Some benefits are mandated by law in certain instances, such as health insurance, while others, such as PTO , are offered to attract top-level employees to work for a particular company.

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A truly impactful employee benefits program goes well beyond medical coverage, said Alex Shubat, CEO and co-founder of work-life-balance platform Espresa.

“I believe that benefits are all about employee recruitment and retention, which comes from people feeling valued,” Shubat said. “They want to know that their employers care about their well-being and respect their time.” [See related article: Quitting Your Day Job? The Basics on Benefits Coverage for Entrepreneurs ]

What to include in your employee benefits package

Here are some employee benefits that PEOs and insurance brokers can help you offer, as well as a few perks that many employers add as they expand their benefits packages.

• Medical: Health benefits are among the leading reasons an employee chooses to work at a company. Offer plans or options that help employees and their families access the ongoing and preventive care they need to lead healthy lives.
• Dental: Annual cleanings, cavity fillings and emergency dental work can be expensive. A good plan helps employees and their families access preventive and vital care at an affordable price.
• Vision: Vision insurance helps people who wear glasses access discounted or free corrective eyewear. This can lift a significant financial burden off your employees’ shoulders.
• Flexible spending accounts: This benefit helps employees save pretax dollars for medical expenses.
• College (529) savings plans: Help your employees set aside funds for their children’s education with a 529 savings option.
• Retirement savings plans, such as a 401(k) : Offer employees an easy way to save for retirement by automatically depositing money into a retirement account each pay period. Your company also may elect to match contributions up to a certain amount or after a certain number of years of service to the company.
• Additional insurance (e.g., life and disability): Life and disability insurance can help your employees and their families during difficult times.
• Time off for vacation, sick days and personal days: Offering ample time off for employees to take care of themselves and loved ones is an excellent way to demonstrate your commitment to their well-being and work-life balance.
• A pretax commuter benefits program: This is especially helpful if your company is in a major city. For example, New York City requires all employers with 20 or more full-time, nonunion employees to offer this type of program. Even if you’re not required to offer it, employees will appreciate knowing you’re dedicated to making the daily grind a little easier.
• Flexible and/or remote work options: Today, many businesses offer a work-from-home model at least part of the time, and some have fully remote positions. This option helps employees save on commuting costs and achieve a better work-life balance.
• Stock options: Common in startups, stock options are equity compensation given to employees in exchange for their years of service or for getting in with a company on the ground level. This benefit allows employees to purchase stock at a preferred price for a predefined period if the company were to go public.

Of course, these are just the basics. To stand out and make your company more attractive to employees, you’ll need to go above and beyond, within your small business budget.

“All companies wish they could spend more on benefits, but it is a balancing act,” said Jeff Yaniga, former chief channel officer of Maestro Health. “It’s been hard for smaller employers to offer choice. Voluntary benefits continue to improve and evolve. Employers must budget benefits with the same rigor by which they budget payroll, innovation, and building great products and services.”

Benefits don’t have to eat up your whole budget, though. Small perks, like free food or discounted services, can go a long way in keeping employees happy.

“Something as simple as free drinks in the kitchen may only cost a few hundred dollars a year, but it’s amazing how much the ‘little things’ affect morale and performance,” Shubat said. For example, a soda machine or on-site dry cleaning “isn’t going to break the bank, and the value they generate in terms of retention is unbelievable,” he said.

Some wellness-related perks might include gym memberships or discounts, smoking cessation programs, subsidized health food markets and child care benefits. Other low-cost perks include employee-recognition programs (with small rewards or prizes); points-based programs that let employees earn discounts, cash and gift cards; and drawings or raffles.

Why offering competitive benefits is good for employers

You know that attractive benefits packages help employees, but you should also understand the advantages for employers. Here are a few reasons you should offer a competitive benefits package:

• It attracts top talent. The best employees in your field know that they are in demand, and they have choices for where to work. An appealing employee benefits package can help attract and retain these employees.
• It keeps employees healthy. Without health insurance, the flexibility to work from home or ample time off, employees may experience burnout. That hurts your bottom line in the long run, as employees are less productive when they’re overworked than when they are well rested.
• It’s good for public relations. More customers want to conduct business with companies that have strong values, including good treatment of employees.

Tips for creating an employee benefits package

Our sources offered the following advice for building an employee benefits package that works for your company.

Offer choices.

Employees may seek different offerings in their benefits packages. For example, younger employees may want help saving money to buy a house, while older workers may be more focused on saving money for their retirement. Allowing employees to personalize their package to meet their own goals is a big part of increasing satisfaction with your benefits plan.

High-deductible health plans can be supplemented with voluntary benefits, such as low-cost loans, Yaniga said. “Empowering employers with the best benefits options will put them on a path toward higher retention rates , greater employee engagement and a more thriving workplace,” he said.

Other popular voluntary benefits include wellness plans, telemedicine, pet insurance and financial advisory tools.

Use technology to your advantage.

Finding an intuitive online portal that’s easy for your employees to access and navigate is important to help them understand what they can do with their benefits package. If it’s easy to enroll and make changes down the line, employees will feel in control of their benefits.

“Most traditional benefits, like medical and retirement plans, can be viewed and managed through online portals,” Shubat said. “The next wave is making all benefits and services available through digital platforms. Most companies don’t have those tools in place right now, but it’s becoming more and more common every day.”

Technology can help employers, too. By using the analytics provided by these tools, you can gain a better understanding of your employees’ needs and what’s working.

Ask employees what they want.

Yaniga emphasized the importance of knowing your employees and finding out what benefits they really want.

“The more we understand about the benefit priorities of our employees, the more we can meet them at their priorities,” Yaniga said. “Best-in-class companies build a great culture by applying all they know about their employees’ priorities to their benefit structures.”

Best HR software for employee benefits

If you’re looking for HR software that can help you devise and manage a great employee benefits package, consider these platforms:

• Rippling: Rippling is well-rounded HR software that offers all of the most important features we looked for. It also includes highly effective onboarding tools, so you’ll be able to get new hires acquainted with their benefits package quickly and easily. Check out our Rippling review to learn more.
• Paycor: Paycor is especially useful for analyzing your data, which can help you choose employee benefits that your team actually wants.
• Gusto: Gusto is a leading name in HR, and for good reason. We especially like its tools for managing payroll and ensuring your team is compensated accurately and on time. This can also play into how you structure your employee benefits plan. To learn more about this platform, check out our Gusto review .

These are just a few great options. See our picks for the best HR software to learn more about our favorite solutions.

Build the benefits package your employees want

While a good wage or salary is important for any employee who’s considering whether to accept a job or stay with a company, the strength of the employer’s benefits package can often play a large role in their decision as well. By bundling the retirement, healthcare, time-off and other benefits your employees really want, you can help improve employee retention and enhance your recruitment efforts. Follow the advice above to start building a benefits plan that truly makes a difference for your employees and your business.

Nicole Fallon-Peek and Tejas Vemparala contributed to this article. Source interviews were conducted for a previous version of this article.

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25 Benefits of Having a Business Plan in 2024

What is a business plan, what are the benefits of a business plan, 1) executive summary, 2) company description, 3) market analysis, 4) financial analysis, how to write your own business plan for free, hire a professional for writing a business plan.

The first step to creating a successful business is to have a well-written business plan. The benefits of a business plan are numerous.

A well-written plan can help you start your new business on the right foot with investors, partners, and potential employees. It will also serve as an essential tool for managing the day-to-day operations of the company.

A good business plan will outline clear expectations for all stakeholders involved in helping you become more successful.

In this article, we will discuss what you should include in your business plan so that it is not only informative but also convincing and persuasive to investors, partners, and potential employees. We will also state the benefits of writing a business plan to help your startup succeed.

To start, let’s get a good idea of what a business plan entails.

A business plan is an overview of your company and its goals. It includes information about the industry, finances, and marketing plans.

A business plan is a formal document containing the both short-term and long-term goals of a business, it also gives vital information on how to achieve the goals.

The purpose of a business plan is to provide an overview for investors and lenders, so they can decide whether they want to risk their money on your company.

Moreover, before creating a business plan an entrepreneur must research what will make the business triumph.

There are many benefits to writing a business plan for your new startup. In summary, it will serve as an accurate roadmap for your company, and it will help you think through all aspects of your business: from marketing and finances to staffing and operations. Let’s check the list of business plan benefits below

• A business Plan shows investors how serious you’re about your business
• A business plan can assist you in making decisions.
• A business plan might help you come up with new ideas and innovations.
• A Business Plan Creates an Action Plan
• To have a better understanding of your competitors.
• To gain a deeper understanding of your customer.
• To reveal the truth about assumptions previously nurtured in your industry.
• To determine the sustainability of your business.
• To keep a record of your earnings.
• To determine your financial requirements.
• To attract potential investors.
• To reduce the risk of following the wrong opportunity.
• To make you do more study and have a better understanding of your market.
• To attract workers and a management team to join the company.
• To design a route and concentrate your efforts.
• To find new partnerships.
• To establish your brand.
• To assess your company’s progress and success
• To reposition your company in response to shifting market conditions.
• To make a written record of your marketing strategy.
• To be aware of and anticipate your company’s workforce requirements.
• To seek out new possibilities.
• To capitalize on your competitor’s weakness
• It helps you set long-term goals
• A business plan lets an entrepreneur see future challenges and suggest possible ways to mitigate them.

What are the 4 Components of a Business Plan?

You should invest time in writing out your ideas by starting with these four main sections as they remain the major components of a business plan, and they are: 1) executive summary 2) company description 3) market analysis 4) financial analysis.

Every business plan should have a clear and concise executive summary. It is a short overview of the company’s mission, its qualifications for operating, and the risks it can expect to encounter.

The executive summary should be less than 1-page long and should be concise enough that a reader can understand what your company does in just 10 minutes.

It is important that you provide as many details as possible in the Executive Summary to allow potential investors to have a clear idea of your company’s concept and direction.

The company description section of your business plan defines the firm’s goal and direction so that financiers and investors can get a good idea of who you are.

A market analysis is a comprehensive examination of a market within a specific industry. You will investigate the nature of your market, such as volume and value, potential customer groups, purchasing behaviour, competitiveness, and other crucial elements, using this analysis.

The financial analysis part of your business plan may be the most complex for you to accomplish on your own, but it also has the potential to make or break your funding application.

You will include all financial projections for the business . You might actually need the help of an accountant to get this done.

Financial projections help with market research by predicting demand, pricing strategy, and pricing policy options.

Financial projections also help with strategic planning by organizing all of your financial information into different areas depending on market research and forecasts.

I have written an article, where I’ll walk you through the process of writing your own business plan for free.

Here is it: How to Write a Winning Bankable Business Plan

Creating a business plan might be done with a business plan template, by self-writing, or by hiring a professional. Get the best Business Plan Writing and Business Proposal . Contact us via [email protected]

Starting a business is always risky, but having an actionable and detailed business plan can help reduce the risk. It can also help you steer your business in the right direction. Moreover, the importance of a business plan can never be over-emphasized.

A good, actionable, and detailed business plan is essential for any entrepreneur or business owner to succeed. A well-thought-out plan is crucial to maintain the growth of your company in the long run.

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• Oct 24, 2020

The Top 5 Benefits of Having a Business Plan

Whether you’re starting a small business or exploring ways to expand an existing business, a Business Plan is an important tool to help guide your decisions. An effective Business Plan is a roadmap to success, providing clarity on all aspects of your business, from marketing and finance, through to operations, products, services, people and how you will be better than your competitors.

The purpose of a business plan is to help articulate a strategy for starting or changing your business. It defines how you will achieve your most important business objectives. A good Business Plan should help you to sleep at night if you are a business owner.

For existing businesses, a business plan should be updated annually as a way to guide growth and navigate expansion into new markets. Your plan should include explicit objectives for hiring new employees, what structure you will have, what products and services your business will provide, how you will promote them and how you will finance business operations.

If you are considering starting a business, a Business Plan can help you to check the viability of a business before investing too much time or money in it. It also provides insight on steps to be taken, resources required for achieving your business goals and a timeline of anticipated results.

The Benefits of Having a Business Plan:​

1. Increased Clarity

A business plan can bring clarity to the decision-making process regarding key aspects of the business such as capital investments, leases, resourcing, etc. You can't do everything. A good Business Plan will help you identify business critical priorities and milestones to focus on.

2. Creation of a Marketing Roadmap

Marketing is an important aspect of a business plan. It helps to define your target market(s), target customers and how you will promote and place your product / service to these markets / customers.

3. Support for Funding

Whether you’re seeking credit from a bank or capital from investors, a business plan that answers questions about profitability and revenue generation is often required.

4. Helps to Secure Talent

For a business to succeed, attracting talented workers and partners is vital. Part of a business plan’s purpose is to help bring in the right talent, at the right time. Staff want to understand the vision, how the business will achieve its goals, and how they can contribute to this in their own roles.

5. Provides Structure

A business plan provides structure and defines business management objectives. It becomes a reference tool to keep the business on track with sales targets and operational milestones. When used properly and consulted regularly, it can help measure and manage your priority areas of focus.

Download your Business Plan template for $49.99 + GST here.

Many people engage us as business coaches to take a weekly / fortnightly step-by-step approach to the development of their own Business Plans, with the added benefit of our expertise and guidance throughout the process. In this way, you learn the essential aspects of running a successful business, while crafting your very own business plan over 8-12 weeks.

If you would like more information about how to create an effective Business Plan for your business, with our guidance, then please don't hesitate to contact Business Agility. We are business coaches who are former CEOs and MDs. We know what it takes to be successful in business.

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More From Forbes

The Key Benefits To A Comprehensive Business Plan

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Starting a new business is an exhilarating adventure filled with many possibilities with the thrill of turning a vision into reality. The excitement stems from the opportunity to innovate, create something unique, and make a meaningful impact in the world.

However, with this excitement comes the challenge of juggling numerous tasks. From developing a solid business plan and securing funding to building a brand and assembling a team, the initial phase of launching a business demands attention to detail and effective time management. Navigating these multifaceted responsibilities requires resilience and strategic planning, but the reward of seeing your entrepreneurial dream come to life makes every effort worthwhile.

One of the key elements to ensure your venture's success is a well-constructed business plan. Whether you're a seasoned entrepreneur or a budding startup, having a solid business plan is crucial for several reasons.

Let's explore why a good business plan is indispensable for your business.

1. provides a roadmap for success.

A business plan serves as a roadmap, guiding you through each phase of your business journey. It helps you outline your business goals, identify your target market, and define your unique selling proposition (USP). With a clear plan in place, you can make informed decisions and stay on track, ensuring your business moves in the right direction.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, 2. helps secure funding.

Your business plan can help to secure funding . Investors and lenders need to see a detailed plan that demonstrates your business's potential for success. A comprehensive business plan shows them that you've done your homework, understand your market, and have a clear strategy for growth. It gives them confidence that their investment will yield returns.

3. Clarifies Your Business Idea

Writing a business plan forces you to thoroughly analyze your business idea. It helps you identify potential challenges and opportunities, refine your business model, and ensure your idea is viable. This process of critical thinking and reflection is invaluable, as it can save you time and money in the long run by addressing issues before they become major problems.

4. Facilitates Strategic Planning

A business plan is not just about the present; it's also about the future. It allows you to set long-term goals and develop strategies to achieve them. By regularly reviewing and updating your business plan, you can adapt to changing market conditions, stay ahead of competitors, and seize new opportunities as they arise.

5. Improves Communication

Whether you're pitching to investors, recruiting new team members, or collaborating with partners, a business plan helps you clearly communicate your vision and goals. It ensures everyone involved understands the direction of the business and their role in achieving success. This alignment is crucial for building a cohesive and motivated team.

6. Aids in Risk Management

Every business must manage risk but a good business plan helps you anticipate and mitigate those risks. When potential risks are identified you can create contingency plans to minimize their impact on your business. This proactive approach to risk management can make the difference between thriving and merely surviving in a competitive market.

7. Tracks Progress and Measures Success

A business plan offers benchmarks so that you can measure your progress against your goals. By setting specific, measurable goals, you can track your performance, identify areas for improvement, and celebrate your achievements. This ongoing assessment is essential for maintaining momentum and driving continuous growth.

The bottom line is that in the dynamic world of business, a good business plan is your best ally. It not only lays the foundation for your venture but also guides you through the complexities of entrepreneurship. By following these tips you have a laid out plan to navigate the challenges and opportunities that come your way.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.

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With Hundreds of Benefits Now in the Mix, How Can Employers Decide What to Offer?

Two years ago, the SHRM Employee Benefits Survey , which offers a comprehensive view of the support employers offer employees, listed some 175 available benefits.

In 2024, that number rose to 216—a 23% increase.

“There is a huge amount of different benefits employers can provide now, and more new ideas come up all the time,” says Daniel Stunes, manager of data monetization with SHRM Data and Insights.

There are the mainstay benefits, of course—health care offerings, retirement options, and paid time off. There are also education benefits, financial benefits, volunteering benefits, and family care benefits, which have become more popular in recent years.

Then, there’s the growing number of niche benefits. Think menopause support and grandparent leave, both of which made their first appearance in SHRM’s survey in 2024.

With so many benefits now on the table, employers have a big decision to make: which of these dozens of perks to offer their workers.

“It is getting difficult for employers to figure out what benefits to include,” says Sera-Leigh Ghouralal, researcher at the Integrated Benefits Institute (IBI), a national nonprofit research organization and business association serving more than 1,600 employer and other members. “The decision-making process is complicated by the necessity to balance cost, relevance, and employee appeal.”

Sure, comprehensive health care coverage, retirement benefits, and paid time off are table stakes and will likely always be a part of employers’ core offerings. (SHRM research, for instance, finds that 97% of organizations make some form of health coverage available to their employees.) But increasingly, employers—both in an effort to stay competitive in a still-hot job market and as a way to help support employees and improve their well-being—are turning to a growing number of other benefits, as well. The approach is less one-size-fits-all, and instead more nuanced, more tailored.

“Traditionally, companies would approach benefits from the standpoint of, ‘What is something we can offer that benefits the most amount of people?’ Now we’re at the point of, ‘The vast majority of companies provide health care, mental health care, some kind of leave program, and some kind of retirement program. So, how can I be more competitive in the marketplace?’ ” Stunes says. “That’s when we see some of these specific benefits. If you have this big, long list of extra benefits, some may apply, some may not, but I think that shows you’re trying to reach some of the groups and make a difference.”

So, the question is: How do employers decide exactly what to offer employees, especially for benefits that go beyond the core offerings?

Many employers are turning to a tried-and-true, but often underused, method: asking their employees.

“It’s really about managing employees’ needs,” says Calven Engstrom, a data sourcing specialist at SHRM. “At the end of the day, it’s doing what you think would make your employees happy.”

Getting Employee Feedback

Many employers are turning to data-driven strategies to find out exactly what kind of supports employees are looking for, Ghouralal says. This includes employee surveys, focus groups, and other forms of direct feedback to gauge what benefits employees value most. IBI’s research shows that employers typically collect data on a quarterly basis, though Ghouralal suggests aiming for ongoing feedback through more regular team and one-on-one meetings.

Amanta Mazumdar, vice president of total rewards at Hilton, says employee feedback is key when choosing benefits. Each year, the hotel giant sends all team members a comprehensive survey with some 50 questions, as well as open-ended questions that allow workers to offer free-form feedback.

“We comb through all of those comments to see how they relate to total rewards. We think, ‘Is there a benefit that can help address this?’ ” he says. “What drives our strategy is what our team members are telling us, where they need help, and trying to address their needs.”

Hilton also uses other data sources, including industry benchmarks and meetings with recruiters, to determine what kinds of benefits job candidates are looking for.

In recent years, some of that feedback led Hilton to focus on benefits for additional family members, including caregiving and pet benefits. “There was a lot we heard in our focus groups around team members who were not just taking care of children, but [also] taking care of parents or elderly family members or friends, even pets. It was amazing how many people talked about pet care,” Mazumdar says.

Cassandra Pratt, CHRO of Progyny, a New York City-based health care and benefit firm with roughly 620 employees, says her company uses a variety of data inputs to make decisions on what benefits to include in its portfolio. That includes regularly conducted employee surveys, both general and benefit-specific; stay and exit interviews; and external benchmarking. The company also looks at its medical claims data to “better understand what treatments are trending in our populations and how we can evolve our offerings to better support employees both for critical care and wellness,” she says. “Employee input is necessary to create a benefits package that meets their needs.”

As a result of what it has discovered, Progyny has implemented a number of changes in recent years, according to Pratt. “We’ve introduced a range of policies that address some of the more difficult aspects of our employees' personal lives,” she says.

Those include additions of parental loss leave and NICU leave; mentorship programs; financial guides; and free mental health services, Pratt says. Progyny also is in the process of adding a more robust primary care option to increase access for all employees.

The expanded benefits roster has been a big boon to the company. It’s helped grow the number of employees by 285% in the past four years and led to an 84% retention rate, Pratt says.

Stunes says that’s part of the reason for embracing innovative offerings: both the employer and employees benefit.

“Employees get additional benefits available to them, and employers are rewarded not only with increased loyalty and retention from their current employees, but also by having unique benefits to help differentiate their company to potential new hires during the recruitment process,” he says.

Paying Attention to the Market

Market trends and what’s happening in the news often play into companies’ benefits decisions, as well. Dire statistics around mental health, with high rates of depression, anxiety, and stress over the past several years, have caused many employers to beef up mental health offerings. Financial health support has also been a focus as sky-high inflation and elevated interest rates have taken a toll on employees’ pocketbooks—and on their state of mind.

In the case of menopause support—a rising benefit trend embraced by companies including Microsoft and Sanofi—a growing and open conversation about women going through that phase in their lives, coupled with new legislation, is making employers think about the benefit.

Several high-profile groups and people—including actor Halle Berry—are advocating for menopause research, training, and education. Additionally, a bipartisan Senate bill introduced in May that would fund additional federal research into menopause, along with physician training and other types of support, could signal increasing attention to menopause as a health care and benefits issue.

“With things like menopause, I think it’s becoming more a part of the conversation,” Stunes says. “The more comfortable people are talking about it, the more businesses hear about it. And the more businesses hear about it, the more they realize, ‘Maybe we should do something about that.’ ”

The 2024 SHRM Employee Benefits Survey found that 17% of employers provide menopause-specific support, such as counseling and education, while another 2% offer menopause or menstrual leave above what is already covered by regular sick time.

Employees Being More Open

One of the biggest overall trends employers are uncovering through their interviews, surveys, and focus groups is that employees are speaking up about the kind of help they are looking for. That wasn’t always the case, but as home and work lives blend and stressors soar, in part due to an increase in remote work, the pandemic, and a myriad of well-being challenges, employees are increasingly more open to telling employers what they need—and sometimes expect.

Listening to employees’ pain points, concerns, and needs is important, Ghouralal says, but the real difference comes when employers take action. Employee survey findings aren’t any good if nothing comes out of them.

“Employees definitely want to be heard, but more than that, they want to see actionable change from their feedback,” she says. “The key to maneuvering through the plethora of benefits being offered these days is to listen and communicate with employees and focus on the needs of your specific workforce—what’s working for another organization might not be what will work for you.”

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A guide to help understand insurance needs for new and established businesses

• Running a small business involves financial risks, which can make choosing the right insurance for you important.
• Small businesses should consider insurance for their vehicles, property, liability, products, and more. 
• State Farm can help you tailor insurance coverages to help fit your business, offering personalized service to help you as you grow.

This post was created by Insider Studios with State Farm. 

Running your own small business is a fulfilling way to earn a great living while doing something you love and helping others. But no matter how long you've been in the game, from just a couple of weeks to a couple of decades, there are always financial risks lurking around the corner. An unexpected accident, property damage, or a customer dispute can hit your wallet hard if you're not prepared.

Selecting the right insurance can help you safeguard yourself from common risks. This way, you can stay focused on the adventure of running your business.

So, where do you start? The types of insurance you could want will depend on your unique situation. 

If you're unfamiliar with the different types of plans available to small businesses, selecting insurance may be intimidating. Here's a quick guide to six of the most common types small businesses have. 

• Commercial auto insurance: This could cover the trucks, vans, and other vehicles you use in your business or when traveling between locations if you have more than one. It could protect you from the costs of covered repairs, legal fees, and accidents if you or your employees are involved. 

One benefit of this type of insurance is that it can be customized. Depending on your unique needs, your policy may include:

• Commercial property insurance: Does your business own property or physical assets, such as a building or inventory? Commercial property insurance helps to protect against loss or damage to the company's property from weather-related events like hailstorms or wind, fires, smoke, vandalism, and theft . 
• General liability insurance: This can help protect you from losses in covered cases of bodily injury, property damage, libel, slander, and lawsuits. 
• Business Owners policy (BOP): You can get property and liability coverage in one policy with a BOP , making it a convenient option if you need both. These policies can sometimes be more cost-effective than purchasing the coverages separately. 
• Professional liability insurance: Some businesses may have the need for professional liability insurance. They can obtain this insurance to protect themselves from financial losses that stem from malpractice, errors, and negligence. In some instances, this coverage can be added and provided through the Business Owners policy.
• Workers' compensation insurance : You should consider workers' compensation insurance if you have employees. It may provide medical and wage benefits to employees who are injured at work. 

Not sure exactly what type of insurance you need, or if your current coverages still fit your needs? State Farm ® offers Small Business insurance for a wide range of small business types. Your local agent can help you tailor policies and coverage amounts to your specific needs and streamline your insurance purchase. 

And as your business evolves, you can regularly check in to assess if your insurance keeps up with your needs. 

Learn more insurance and financial tips from State Farm for your small business.  

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How to create and benefit from a savings plan

PayPal Editorial Staff

August 14, 2024

Trying to make smarter spending decisions? Savings plans give structure to finances, enabling short- and long-term planning with effective budgeting.

This article dives into what a savings plan is, how to build one, potential benefits, and answers to frequently asked questions.

What is a savings plan?

A savings plan is a blueprint for saving money that helps people make financial decisions and reach financial goals. Savings plans give structure to day-to-day spending, tracking incomings and outgoings while minimizing unimportant purchases.

A savings plan works together with a savings account — which is a place to put money away and build wealth over time. A high-yield savings account, like PayPal Savings 1 , can also offer compound interest with a beneficial annual percentage yield (APY) , helping boost financial growth.

Types of savings plans

Different savings plans can be tailored for specific goals and may include the following types of funds:

• Emergency fund . Additional savings kept for unexpected bills or expenses can be deposited into an emergency fund .
• Retirement savings . These funds are saved over longer periods of time to use at retirement age.
• Education fund . Money for educational expenses, such as college or university tuition, fall into this bucket.
• Vacation fund . A vacation fund could include savings for a dream holiday, family reunion, or big-ticket getaway.
• Slush fund . This miscellaneous savings fund can be used for any desired purpose.

When a savings account is designed for a specific goal or expense, it may also be known as a sinking fund . Use savings apps to help savings plans and sinking funds stay on track.

How to build an effective savings plan

Consider these tips when building a savings plan:

• S.M.A.R.T. goals . Setting "smart" goals for a savings plan can help reach milestones effectively. S.M.A.R.T. refers to outcomes that are specific, measurable, achievable, relevant, and time bound.
• Realistic budgeting . Creating a strong budget  can helps to track and manage income and expenses efficiently. There are many ways to do this; a common strategy is the 50/30/20 rule: putting 50% of income toward needs, 30% toward wants, and 20% toward savings.
• Automated transfers . Setting up recurring transfers to a savings account can help automate savings  and ensure consistency over time.
• Cutting expenses . Identifying non-essential expenses helps cut additional costs that can be redirected to savings.
• Using financial apps . Apps and digital financial tools can help manage subscriptions , pay bills  on time, as well as assist with expense tracking .

Potential savings plan benefits

Some of the potential benefits of a savings plan are:

• Financial security . A savings plan can function as a security blanket, providing day-to-day financial backing.
• Achieving goals . Savings plans help to achieve long- and short-term financial goals .
• Peace of mind . Having extra funds on hand may help alleviate stress, knowing that unexpected financial challenges can be met.
• Financial freedom . Well-structured savings plans may benefit the ability to try new activities and ventures, with possible financial risk offset by a firm safety net.

Possible savings plan challenges

There are potential challenges that come with savings plans. These may include:

• Staying motivated to save . A savings plan can feel difficult to accomplish if motivation or incentive is low, or goals feel overwhelming.
• Surprise expenses . Costs that come out of the blue can dent the flow of a savings plan and further impact motivation.
• Slow progress . Building up savings can take time and it’s possible to become demotivated. It’s important to stay the course and remain focused on individual goals.
• Life changes . Changing life circumstances can impact financial situations and cause plans to change.

Savings plan strategies

Unexpected costs and household expenses are a part of life. But it’s possible to both plan for and handle them without a savings plan being derailed. Consider these financial discipline tips to help avoid unnecessary spending and stay on track:

• Check on progress regularly (weekly, monthly, etc.)
• Manage expectations
• Use patience and determination
• Have a clear vision on goals and end points
• Budget for fun and entertainment, too

Monitoring and adjusting a savings plan

It’s essential to review a savings plan at regular intervals. Monitoring progress further helps to make easy adjustments should any personal financial situations change.

Personal finance software and budgeting apps can also help individuals stay motivated and on track to meet savings goals.

Savings plans are an essential part of a broader approach to financial health, helping provide a personal safety net and a pathway to achieving important financial goals.

Learn about PayPal Savings .

Savings plan FAQ

What is in a savings plan.

A savings plan typically includes:

• Specific goals.
• Targeted amounts.
• A savings schedule.
• A savings account.
• Progress tracking.

Is a savings plan the same as a 401(k)?

A 401(k) and a savings plan are two different things, though a savings plan may include a 401(k) plan. A 401(k) plan is an investment account designed for long-term retirement savings and has restrictions on when money can be accessed. A 401(k) is generated by an employer, with funds growing over time through market investments. A savings plan is a broader strategy that involves setting specific goals and utilizing various accounts to achieve financial stability.

Why is a savings plan important?

The importance of generating savings can’t be overstated. Benefits may include:

• Reaching financial goals . From a down payment on a house to a dream vacation, savings plans can help achieve important personal goals.
• Peace of mind . Having a financial cushion may ease anxiety by helping individuals feel they can cover any unexpected expenses and emergencies if they arise.
• Teachable moments . Having children involved in a savings plan can help teach them responsible spending habits and valuable lessons around savings.

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Virtual CMOs Have a Voice in Law Firms’ Strategic Growth Plans

The rise of fractional or virtual chief marketing officers has reshaped how law firms approach their marketing strategies—and their growth trajectories. Although a fractional CMO can assist with short-term projects, their true value lies in long-term strategic planning.

Strategic vs. Tactical

As a member of a law firm’s management team—whether the managing partner, executive team member, or practice group leader—you may be looking to seize marketing opportunities of varying complexity and urgency. Perhaps you’ve developed a new strategic practice area, identified a promising niche market, or conceived an innovative approach to client service.

Translating these great ideas into effective marketing strategies can be a daunting task. In law firms and other dynamic organizations, distinguishing between strategic marketing imperatives and tactical tasks is critical.

We often hear firm leaders say they need someone to draft lawyer bios, maintain a contact list, and make occasional updates to the website. Such tasks are essential, but they don’t necessarily require a CMO’s depth of expertise. A mid-level marketing coordinator can take care of such tactical activities. But even tactical activities demand a holistic and consistent structure to deliver maximum impact.

The most effective legal marketing professionals understand that strategic insights are woven into every aspect of marketing, from attorney bios to notices and newsletters to collateral involving capabilities and practice areas. Everything must link to a brand and a carefully structured marketing plan.

Fractional CMO Benefits

A virtual or fractional CMO can provide significant value when you’re ready to step back and carefully analyze your firm’s long-term strategic needs.

There are several common scenarios that prompt law firms to engage a fractional CMO, many of which involve navigating periods of significant change:

• Entering a growth phase, such as bringing on powerhouse talent, welcoming entire new teams, or expanding to new locations in the US or globally
• Identifying a business opportunity that requires expert marketing guidance to capitalize on quickly and fully
• Positioning your boutique firm to garner maximum value in a future merger
• Responding to a newly updated strategic vision for the firm, which demands a comprehensive marketing plan
• Repositioning your firm to find its sweet spot in an increasingly competitive market
• Integrating marketing operations to help strengthen automation and processes so the team provides maximum value

Fractional CMOs bring more than marketing expertise. As a strategic partner, they assess current operations and processes, define relevant goals and metrics, and develop actionable plans for moving forward. Their role as a subject matter expert allows them to use their industry knowledge and marketing expertise to shape initiatives efficiently.

They also take ownership of strategy execution and driving business growth. They work with your team in their capacity as a brand builder to create a cohesive brand voice that communicates your firm’s unique value proposition to the market.

During challenging times, they serve as a crisis navigator, providing an objective perspective to help preserve your reputation. Finally, as a team builder, they manage various strategic partners and vendors, frame out needed roles and talent requirements, and develop high-performing marketing teams.

Maximizing Value

To maximize the value of your firm’s partnership with a fractional or virtual CMO, it’s important to approach it with the right mindset.

This relationship isn’t about delegating tasks. It’s about engaging in a collaborative process to shape your firm’s future through a strong brand and presence in the marketplace. Be prepared to participate actively in developing the marketing strategy. The most impactful results emerge when a firm’s leadership is fully engaged.

When selecting a fractional CMO, prioritize candidates with substantial C-suite experience. Look for professionals who have steered a firm’s marketing efforts through multiple phases and understand the management commitment required to achieve good results.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Jenn Bankston and Amy Knapp head strategic marketing and communications agencies Bankston Marketing and Knapp Marketing, respectively. They collaborate on branding and strategic marketing projects in professional services.

Write for Us: Author Guidelines

To contact the editors responsible for this story: Melanie Cohen at [email protected] ; Rebecca Baker at [email protected]

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