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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated April 17, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

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Sample business plan library

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

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

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How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

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Legal news and notes for small government contractors

Published by koprince mccall pottroff llc  |  edited by shane j. mccall, far update: good faith in small business subcontracting.

For many contracts, large businesses must establish and have the government approve a subcontracting plan that details the goals and efforts the large prime contractor will take to award subcontracts to various types of small businesses. Well, how does the government hold large businesses accountable for these goals? The FAR will soon have a final rule addressing good faith efforts to comply with a small business subcontracting plan.

Back in late 2019, SBA updated its own rules on subcontracting plans to address. The SBA rules were intended to make it easier to hold large business prime contractors accountable for meeting the goals of their small business subcontracting plans. In line with the  2017 NDAA , SBA updated its rules found at  13 C.F.R. § 125.3(d)  so that it will be a material breach of a contract or subcontract if a contractor with a subcontracting plan fails to comply in good faith with the requirement to submit reports and cooperate with agencies to determine subcontracting plan compliance. 

Now, the FAR has followed suit in a rule effective September 10, 2021. This will eliminate the inconsistencies between the FAR and SBA rules, which is always nice so both contractors and agencies are on the same page when it comes to subcontracting plans. Here’s a little background on the changes.

Small business subcontracting plans are required from large prime contractors when a contract is expected to exceed $750,000 ($1.5 million for construction) and has subcontracting possibilities. These plans are required for the acquisition of commercial items and COTS items.

FAR 19.704 lists what is required in these plans. This includes goals for subcontracting efforts to provide fair opportunities to compete for subcontracts for various types of small business concerns, including small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. Failure to make a good faith effort to comply with the plan can result in liquidated damages under FAR 52.219-16 .

There are two main changes in the rule. First, all indirect costs, with certain exceptions, are included in commercial plans and summary subcontract report (SSRs). Second, revised FAR 19.705-7 now has examples of a good faith efforts to comply with a subcontracting plan, and examples of a failure to make a good faith effort.

Here are some takeaways from the implementation of this rule.

Material Breach . The comments to the rule make clear that “a failure to make a good faith effort to comply with a subcontracting plan is a material breach, sufficient for the assessment of liquidated damages, and also for other remedies the Government may have.” So, this is not something to be taken lightly by prime contractors operating under a subcontracting plan.

Key Good Faith Actions . The rule provides examples of actions that indicated good faith efforts to comply with the subcontracting plan. Here are a few of those:

• Market research to identify small businesses “through all reasonable means, such as searching SAM, posting notices or solicitations on SBA’s SUBNet, participating in business matchmaking events, and attending preproposal conferences.”
• “Assisting interested small businesses in obtaining bonding, lines of credit, required insurance, necessary equipment, supplies, materials, or services.”
• “Participating in a formal mentor-protégé program with one or more small business protégés.”

Like the SBA rule, the FAR rule now provides examples of actions that could be considered “failure to make a good faith effort to comply with a subcontracting plan” at FAR 19.705-7 . Contractors should take a close look at these examples. But here are some highlights:

• Turning in subcontracting plan reports late.
• Not paying small business subcontractors “terms of the contract” with them.
• Not having a designated employee to monitor the subcontracting plan.
• Failure to maintain records or procedures to show compliance with subcontracting plan requirements.
• Not doing market research (such as outreach, industry days, and database searches) to identify small business subcontractors.
• “If a contractor does not either correct substantiated findings or participate in subcontracting plan management training offered by the Government, it could be perceived by the contracting officer as a failure to make a good faith effort.”

But the rule is clear that agencies need to look at “the totality of the contractor’s actions” and, interestingly, mere failure “to meet its subcontracting goals does not, in and of itself, constitute a failure to make a good faith effort.” And there is an example of what may constitute a valid explanation: if there are no available small business sources for certain types of work.

Rebuttal . Note that there is an opportunity for a contractor to respond to an accusation of failure to make good faith efforts. In the rule on liquidated damages, it states: “Before the Contracting Officer makes a final decision that the Contractor has failed to make such good faith effort, the Contracting Officer shall give the Contractor written notice specifying the failure and permitting the Contractor to demonstrate what good faith efforts have been made and to discuss the matter.” As in most things in dealing with government agencies (and other aspects of life), failure to respond can be taken as an admission of fault.

This new rule is important for both large prime contractors and subcontractors. Prime contractors need to make sure they are making these good faith efforts to comply and provide actual opportunities for subcontractors. By that same token, it’s good for small business subcontractors to know about these rules as well and take advantage of these opportunities. Now that the FAR has been updated, there’s no excuse for large prime contractors not to comply and no excuse for agencies not to enforce these rules.

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By: Stephanie Hagan on September 20th, 2023

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A Comprehensive Guide to Small Business Subcontracting Plans

GSA Schedule | Resources and Insight | 9 Min Read

It’s no secret the federal government prioritizes small business participation in federal contracts. In Fiscal Year (FY) 2019, the federal government awarded $162.9 billion in contract dollars to small businesses. How does the government accomplish this?

The federal government requires Other Than Small Businesses (OTSB) to create a “practicable opportunity” for small businesses to participate in federal procurement. One of the ways to accomplish this is through small business subcontracting .

A lot of our clients ask if they need to make a small business subcontracting plan as GSA Schedule contractors. The answer depends on a few factors, so let’s cover what a small business contracting plan is, if you need one, and how to create the different types of subcontracting plans. 

What is Subcontracting and What Does it Mean in Federal Contracting?

Small business subcontracting allows contractors to outsource a portion of their federal contracting dollars to small businesses. These small businesses do not work directly with the government, instead they work with the contractors to provide the federal government with products and services. Some government contracts require contractors to submit a small business subcontracting plan including GSA Schedule contracts. 

What is a Small Business Subcontracting Plan?

The purpose of the small business subcontracting plan is to ensure Other Than Small Businesses (OTSBs), any business that is not considered a small business, are setting aside part of the federal money they receive to subcontract to small businesses. The plan is essentially a projection of how you want to allocate your contract requirements between your company and small businesses.

A small business subcontracting plan helps you determine and meet your subcontracting goals because you have to set-aside a dollar estimate for small businesses before you begin working on your contract.

There are two types of plans: commercial and individual. We will go into further detail on these below.

How Do I Know if I Need a Subcontracting Plan?

If you have a federal contract over the Simplified Acquisition Threshold (SAT) of $750,000 and you are not a small business (qualifications explained in further detail below), then you will need a subcontracting plan.

It’s important to note some contracts and task orders will have their own set of requirements, but most other contracts will follow the Federal Acquisition Regulation (FAR) which states :

“Any contractor receiving a contract with a value greater than the Simplified Acquisition Threshold must agree in the contract that small business…concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance.”

In other words, the federal government wants to ensure you are subcontracting whenever you can.

How Does the Government Define a Small Business?

How do you know what constitutes a small business in the U.S.? The Small Business Administration (SBA) has created a list of qualifications you have to meet to be considered a small business in the eyes of the government. You must:

• Be organized for profit (non-profits will have to make a subcontracting plan).
• Have a place of business in the U.S.
• Operate primarily within the U.S. If you are not a U.S. company, you must have U.S. headquarters and make a significant contribution to the American economy through taxes or use of American products, materials, or labor.
• Meet the numerical size standards as defined by the SBA using the Size Standards Tool . This is defined based on NAICS Codes . It’s important to note different contracts may have different NAICS, so you may be considered small on one contract and other than small on another, so you will need to fill out a subcontracting plan for any contract that you are considered an OTSB.

The SBA has created several programs to help small businesses win federal procurement dollars . There are five subcategories of small businesses associated with federal contracting:

• Small Disadvantaged Business
• Women-Owned Small Business (WOSB)
• Veteran-Owned Small Business (VOSB)
• Service-Disabled Veteran-Owned Small Business (SDVOSB)

What Are the Types of Subcontracting Plans?

If you have to submit a subcontracting plan for your GSA Schedule contract, there are two options: commercial and individual.

What is a Commercial Subcontracting Plan?

A commercial subcontracting plan is defined by the FAR as a plan that “covers the fiscal year and applies to the entire production of commercial items by either the entire company or a portion thereof (e.g., division, plant, or product line).”

What does this mean? Essentially, a commercial plan covers all federal contracts for that year. You don’t need to make a separate plan for each of your contracts if you have multiple. It’s also based on actual spend, so when you are planning out what you expect the value of your subcontracting to be, you’re going to base it off of what your spending was on subcontracting the previous year.

This plan covers most of your corporate expenses as well, not just the specific expenses within your contracting agreement. It’s renewed annually on October 30, and you can renegotiate your plan with new goals each year.

Commercial is the preferred plan for product manufacturers because this type of plan automatically includes indirect spending, including all of your corporate expenses (more detail on indirect vs. indirect spending below). It’s more difficult for product manufacturers to tie direct contract spending to subcontracting goals.

Constructing a Commercial Subcontracting Plan

The first thing you need to do to create your commercial subcontracting plan is report what period the plan is going to cover (the fiscal year), and what your expected sales are for that year. Please note you will report your company-wide sales, not just your federal contract sales.

Next, you’ll need to estimate the total dollar amount that will be subcontracted for each category of small business, including WOSB, SDVOSB, VOSB, small disadvantaged, and HubZone. The SBA has recommended percentages (outlined in image number 3) they want you to try to hit in your plan for each subcategory. However, when you’re reporting your subcontracting numbers, one small business can count for multiple categories.

As mentioned before, this plan is based on actual spend, not what you’re hoping to subcontract from what you’re receiving from the government. This projection is made from how you spent your subcontracting dollars last year.

What is an Individual Subcontracting Plan?

According to the FAR, an individual subcontracting plan “covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror’s planned subcontracting in support of the specific contract.”

To sum it up, you will need an individual plan for each of your contracts. Unlike the commercial plan, the goals are based on what you expect to subcontract for the period of the entire contract, instead of your past performance from the previous fiscal year.

Constructing an Individual Subcontracting Plan

First, you need to estimate the value of each contract, including all option periods. As seen below, the plan is broken into base and option periods. Even if you don’t end up getting all these option periods, you will need to lay out what you predict to contract and what the value would be for the base and each option period.

For example, if you have a $200 contract from the government (much smaller than any actual contract), you might expect $100 to be subcontracted. Of that $100, you might give $71 of that to OTSBs, and $29 to small businesses. In this plan, you’ll need to delineate how much you will allocate to each small business subcategory.

We provided an example below based on the SBA’s recommended percentages, but this is not what your contract will look like exactly. The percentages could be higher or lower based on what you and your Contracting Officer thinks your company can accomplish.

Once you figure out what you want to spend in your contract and what your spending goals are, you should know what is appropriate to report on your subcontracting plan. This is where direct and indirect subcontracting come in.

Direct vs Indirect Subcontracting

While commercial subcontracting plans don’t differentiate between direct or indirect subcontracting, it’s important for you to know the difference between the two, especially if you select an individual subcontracting plan.

Direct subcontracting is exactly what it sounds like--anything that is directly related to work performed under the contract. For example, if you’re contracted to provide plumbing services and you subcontract out to small businesses in Tampa and Atlanta, those will both count toward subcontracting goals as direct subcontracting.

Indirect subcontracting is anything that represents the costs of performing the business. For instance, you may need to hire an accounting firm to do your taxes. You can still count these toward your subcontracting goals, but they are considered non-controllable sources. You can include these costs in individual plans, but you need to state whether you intend to include them and how you will account for these costs. Remember these are automatically included in a commercial plan.

Reporting Your Subcontracting Plan

After you construct your plan, you will need to report its progress to the government on a fairly regular basis. For both commercial and individual plans you will need to fill out a Summary Subcontract Report (SSR) in the Electronic Subcontracting Reporting System (eSRS) .

In the SSR, you will report your subcontracting numbers by business type whether it’s a large or small business (including small business categories), and compare these numbers to the goals laid out in your plan.

If you’re not hitting your goals, you’ll need to show the federal government you are making a “good faith effort.” You can make notes in the remarks section of the report to demonstrate the lengths of your effort. The SSR report is due once a year by October 30.

If you created an individual plan, you will need to submit an additional report in the eSRS aptly named the Individual Subcontracting Report (ISR). These are due twice a year on April 30 and October 30. Just like the SSR, you’ll need to report how much money went toward subcontracting and compare it to your goals. Unlike the SSR, this report is cumulative and will automatically fill in the totals from all your contracts if you have multiple.

Developing and Meeting Your Subcontracting Goals

Plans are essential to success, but they only work well if they’re executed properly. After you create your subcontracting plan, you’ll want to work out how you can effectively meet your goals.

There are several resources available to help you conduct outreach activity and find small businesses who might want to subcontract with you. Some resources include:

• Dynamic Business Search
• National Women’s Business Council
• Veteran Owned Business Directory
• Minority Business Development Agency

As we all know, deadlines always seem to sneak up on us, so make sure you designate someone to act as an administrator for your contracting and subcontracting goals. This person can put structures in place to ensure your company is trying its best to hit all its goals. 

If you consistently miss your goals and cannot demonstrate to the government you are working in “good faith” to improve, you risk rejection or cancellation of your contract. You may also be responsible for the liquidated damages. So it’s important to stay on top of your goals and plan realistically.

Our consultants at Winvale are always here to help you with your GSA Schedule contract and subcontracting needs. If you have any further questions about subcontracting or want to learn more about how you can be a successful contractor, don’t hesitate to contact us .

For more information on small business subcontracting plans, check out our Lunch and Learn webinar . 

About Stephanie Hagan

Stephanie Hagan is the Training and Communications Manager for Winvale. Stephanie grew up in Sarasota, Florida, and earned her Bachelor's of Arts in Journalism and Rhetoric/Communications from the University of Richmond.

3951 Westerre Parkway, Suite 250 Richmond, VA 23233 Email: [email protected] Phone: (202) 296-5505 Fax: (202) 296-5506

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• Small Business Subcontracting Plan (SBSP)
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Description

The federal government has detailed regulations requiring contractors to treat small businesses fairly and provide maximum opportunity for their participation in federal contract work ( FAR 19.7 – The Small Business Subcontracting Program ).

For certain federal contracts, the sponsor will require a Small Business Subcontracting Plan (SBSP). This plan outlines specific goals for subcontracting to various types of small businesses and details the process for reaching those goals and reporting progress. Types of small business include:

• Small business
• Veteran-owned small business
• Service-disabled veteran-owned small business
• HUBZone small business
• Women-owned small business

Federal law requires a subcontracting plan if the value of contract exceeds a set dollar amount—currently $750,000. This amount is known as the “simplified acquisition threshold. 1 ”

For more details, visit...

  FAR 19.702 – Statutory Requirements

  FAR 52.219-8 – Utilization of Small Business Concerns

  FAR 52.219-9 – Small Business Subcontracting Plan

1 The simplified acquisition threshold relevant to the SBSP is defined in the Federal Acquisition Regulations (FAR)

  how do i....

...create a Small Business Subcontracting Plan (SBSP) when required by my contract?

• Step 1:  If the sponsor or SPA Award Negotiator notifies you that your contract needs a SBSP, review your contract to understand the reporting requirements (i.e. FAR 52.219-8 and 52.219-9 ). SPA will assist when it is time to report.
• Step 2: Develop your SBSP. The Award Negotiator will obtain a SBSP template for you from the sponsor. For assistance completing the SBSP template, the department/PI should contact the Office of Procurement Diversity at [email protected] .
• Step 3: Sign and submit your SBSP to the sponsor and send a final copy to the Award Negotiator at [email protected] . Sending the finalized SBSP will complete the award agreement and allow SPA to move forward with award execution.

  Contacts

For assistance and/or questions in completing the SBSP:

Office of Procurement Diversity 

  Shauna Clayborn, Supplier Diversity Coordinator

  [email protected]

For questions about expense tracking and reporting:

Sponsored Programs Administration (SPA)

  Charletta Little, Coordinator, Audit and Compliance

  [email protected]

  FAQs

To comply with federal law (FAR subpart 19.7), all federally sponsored contracts in excess of $750,000 require implementation of a subcontracting plan with established goals for expenditures to small businesses.

Contact the Office of Procurement Diversity (OPD) at [email protected].

The PI/Department is responsible for managing and tracking expenditures as outlined in their SBSP. Accurate expenditures are necessary for future reporting obligations.

If the PI fails to submit a plan, they may be ineligible for the award.

The sponsor may determine that the PI and team have not made good faith efforts to procure small businesses. The University of Illinois could be held liable for fines and be required to return/refund the full amount of the contract.

It is important to formulate a realistic SBSP and execute its budgeting details. There are potential monetary penalties for not meeting goals (see FAR 19.702 ). Moreover, non-compliance issues, such as not meeting goals set in the SBSP are documented by federal agencies and could affect all future funding applicants at the University.

The fact that goods and services from a small business vendor may cost more is not considered by the government to be an acceptable excuse for not using them, unless the cost is prohibitive.

Contact the sponsor and work with them to submit a revised plan. Once complete, send the revised plan to your assigned Award Negotiator via [email protected].

In many cases, an amended plan will be required that includes prior and future supplier diversity goals.

The SPA Audit and Compliance team, with assistance from the department/PI. Audit and Compliance compiles and submits a semi-annual Individual Subcontracting Report (ISR), due in April and October, as well as an annual Summary Subcontract Report (SSR), also due in October.

The data is pulled from a combination of Banner and department tracking systems.

SPA will receive an e-mail confirming whether the report is accepted or rejected. If accepted, the report is complete and requires no further action until the next reporting period. If rejected, SPA will contact the department for assistance in resolving the rejection.

• Quality goods and services to meet the needs of the University
• Potential cost savings through competition
• Support for small and local businesses
• Creating jobs in the community
• Ensuring fairness

  Additional Resources

Related documents and resources.

• Purchasing Vendor Information Form (OBFS)
• Small Business Administration (SBA), Dynamic Small Business Search Database (DSBS)
• Illinois CMS Business Enterprise Program - BEP/VBP Certification Portal
• Illinois Procurement Gateway (IPG) - Registered Vendor Directory

Related FAQs

• How do I create a small business subcontracting plan (SBSP) when required by my contract?
• Why is the SBSP required?
• How do I find a certified small business?
• Once awarded, who is responsible for tracking and managing small business subcontracting expenditures?
• What if the PI fails to submit a SBSP within the time limit prescribed by the contracting officer?
• What if the PI does not meet the spend goals detailed in the SBSP?
• What if the original goals on the SBSP will not be met?
• What if an amendment increases the award dollar amount?
• Who completes the required Small Business Subcontracting Reports?
• Where is the report data pulled from? (SBSP)
• What happens after the report is submitted? (SBSP)
• What are some potential benefits of participating in the Small Business Subcontracting Program?
• Documents & Resources
• Frequently Asked Questions (FAQs)

• Apply to UMaine

Office of Research Administration

Small business subcontracting plans faqs.

Why do I need to create a small business subcontracting plan?

The Small Business Subcontracting Program was designed to ensure that prime contractors further the goals of increasing participation of small businesses in federal procurement. Per Federal Acquisition Regulation (FAR) Subpart 19.7, any contractor receiving a contract over $750,000  ($1.5 million for construction) must agree in the contract that 1) small business, 2) veteran-owned small business (VOSB), 3) service-disabled veteran-owned small business (SVOSB), 4) Historically Underutilized Business (HUBZone) small business, 5) small disadvantaged business (SDB) and 6) women-owned small business (WOSB) concerns will have the maximum practicable opportunity to participate in contract performance.

When do I submit a small business subcontracting plan?

A small business subcontracting plan is generally required to be submitted with the proposal, and is subject to scrutiny during the negotiation phase of an award. Each Federal agency has established subcontracting goals and generally include them with the specific RFP; the goals are also often set out in the sample form for a subcontracting plan. At the time of the proposal, it is usually sufficient to prepare the subcontracting plan for the total cost of a multi-year proposal.

Are subrecipients subject to the small business subcontracting plan compliance?

Yes. A small business subcontracting plan is also required of any subrecipient whose total dollar subcontract amount is expected to exceed total costs of $750,000 for the entire period of performance.

Are there different types of small business subcontracting plans applicable to the University?

The most common small business subcontracting plan used by the University to date is:

Individual Plan :  This subcontracting plan covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror’s planned subcontracting in support of the specific contract. If the offeror is submitting an individual plan, the plan must separately address subcontracting with small business, VOSB, SDVOSB, HUBZones, SDB and WOSB concerns with a separate part for the basic contract and separate parts for each option (if any). The plan shall be included in and made a part of the resultant contract.

Master Plan : A master plan contains all the elements required by the clause at 52.219-9, “Small Business Subcontracting Plan,” except goals and may be incorporated into individual contracts, provided the master plan has been approved. Contractors may establish a master plan, on a plant or division-wide basis. Master plans shall be effective for a three-year period after approval by the administrative contracting officer; however, it is incumbent upon contractors to maintain and update master plans.

This is something that the University is looking into for future use.

How do I look up a business classification or identify a small business supplier?

  A business may self-certify as a small business on the System of Awards (SAM) database. https://www.sam.gov/SAM/

• Check the Small Business Administration (SBA) – Dynamic Small Business Search (DSBS) to search for companies/vendors/suppliers with various small business designations
• Check the Vendor Information Pages (VIP) for Veteran companies – https://www.va.gov/osdbu/
• Check the Women’s Business Enterprise National Council (WBENC) – https://www.wbenc.org/
• Check the National Minority Business Council (NMBC) – http://www.nmbc.org/
• Check the Procurement Services Vendor/Supplier Search (requires single sign on) to search University of Maine System Marketplace for companies/vendors/suppliers that have small business designations
• Run a query (UMS_VENDORS_MM_CLASS) (single sign on required) to view a listing of University diversity designated vendors to satisfy the small business subcontracting plan requirements.

How do I justify the goals proposed to the Sponsor?

Your goals development should take into account:

• Historical data, previous spend history.
• Projected forecast based upon current year’s data.
• Projected goals based on experience, business forecasts, & commitment to improvement, etc.

You will need to liaise with procurement or discuss previous specific purchases with your financial administrator to get an idea of what is realistic. Be prepared to justify in detail the goals proposed at the award/negotiation stage with the sponsor. For example, for certain specific pieces of equipment that are only made by large companies, a sole source justification is done per Procurement process guidance. It would be therefore, difficult to justify even 1% target under this budget category for a small disadvantaged business when you know that this is required.

What if the small business supplier is too expensive?

Products and services from small business suppliers may be priced higher than what might be obtained through a large-business or university strategic contract. This, however, is not an acceptable explanation for not purchasing through a small business enterprise unless the cost difference is significant. Remember that when the PI commits to the spending goals and supplier sources identified in the small business plan, the spend should be placed with those suppliers, or suppliers within the same small business category or categories, regardless of possible savings elsewhere.

What if a conflict of interest exists with a small business supplier?

Any potential or actual conflict of interest (COI) with suppliers must be identified, and the University’s COI policy and procedures must be followed.

What are the recordkeeping requirements of a small business subcontracting plan?

52.219-9(d)(11) describes “ the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan ”, including;

• Source lists that identify small business types
• Organizations contacted in an attempt to locate sources
• Records with FAR-specified information on each subcontract solicitation resulting in an award of more than $150,000
• Records of any outreach efforts
• Records of internal guidance and encouragement provided to buyers

What are the reporting requirements for a small business subcontracting plan?

The requirement is to prepare and submit annual reports through the Electronic Subcontracting Reporting System: eSRS . This Internet-based tool streamlines the process of reporting on subcontracting plans and provides Federal agencies with access to analytical data on subcontracting performance and accomplishments.

Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or since the previous report.

• Submit all individual subcontracting reports (ISR) to ORA 10 days in advance of the submission deadline for review and approval.
• Submit all Individual Subcontracting Reports (ISR) within 30 days of the close of each reporting period.
• Check specific reporting periods with the Federal Agency – (generally semi annual/annual)
• Save a copy of the final submitted report on file and send a copy to ORA.

Who do I contact if I am not able to spend with a small business included in my goals?

After the small business subcontracting plan is accepted by the sponsor, the expectation is that the goals will be met. Therefore, it will be necessary to explain in writing the reason spending could not occur during a federal reporting period and describe what efforts will be made to purchase from that business in the future. The PI must notify the sponsor of these circumstances.

If spend will not occur at all with the business, explain the reason why in writing and document the name of an alternate small business to provide the goods or services.  If another small business cannot be used, document why, and the name of the large business from which the goods or services will be purchased. The PI must then contact the Sponsor to explain the situation.

What if there is a change to the Prime contract with the sponsor? Whenever a request to alter the contract is to be submitted, you should contact ORA to determine if a modified Small Business Subcontracting Plan is required. This could include adding an additional phase, extending the date, or increasing the contract dollar amount

 What happens when a project does not meet its goals?

University of Maine could be held liable for fines.

Per FAR 19.702, legislation enacted in 1989 outlines financial penalties, referred to as “liquidated damages” for the prime contractor in the amount of the actual cash value for any shortfall not realized per Small Business Administration small/disadvantaged business subcontracting plan goals.

It is important to formulate a realistic small business subcontracting plan and execute its budgeting details.  As indicated above, there are potential monetary penalties for not meeting goals.  Moreover, non-compliance issues, such as not meeting goals set in the Small Business Subcontracting Plan, are documented by federal agencies and could affect all future funding applicants at the University.

The PI and department are responsible for managing and tracking spending on your small business subcontracting plan. Failure to meet the subcontracting goals may also negatively affect future funding prospects for other University of Maine applicants.

Who do I contact for more information and assistance?

Depending on what stage of the process you are in, please contact the following for assistance:

• Plan review and submission – Proposal administrator
• Justification and Negotiation – Award Reviewer
• General inquiries: [email protected] and reference the PARS number
• Notify Procurement when sourcing vendors that you have a small business subcontracting plan. RFP v RFB (we cannot necessarily go with the lowest value bid).
• General inquiries – [email protected]

7 steps to start an LLC for your small business

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• The exact steps for forming an LLC vary by state, but it's a similar process in most states.
• You'll need a business name, a registered agent, articles of organization, and an operating agreement in certain states.
• Save $25 when using Block Advisors to form your LLC today. Discount applied in cart.

If you're working on setting up your own business, there's a good chance you're looking to open a limited liability company, or LLC. This business structure gives you limited liability protection similar to a corporation, plus the flexibility of a sole proprietorship or partnership, making it a popular choice for small business owners.

The main perk of an LLC is that it generally can protect your personal assets (like the money you're saving up to buy a home or retire) from certain liabilities or debt that come with owning your business. In other words, in many cases, a creditor you owe money to through your business usually won't be able to come for the money in your personal accounts. Having an LLC can also legitimize your business, which may be a benefit to many small business owners.

If that sounds good, follow these steps to open your LLC.

1. Check what requirements your state has

LLCs are regulated by states, which means that you'll have to meet the specific requirements outlined by the state where you're registering the LLC. You'll find this information easily on your Secretary of State's website.

While most steps necessary to establish an LLC will need to be done no matter which state you live in, the specific guidance for how to do each step — like naming your business and picking a registered agent — can vary.

2. Name your business

Now that you have a business, it's time to choose a name for it. While you'll want something catchy and easy to market, it's also important to make sure that the name you choose meets your specific state's requirements.

First, you'll need to ensure that the name you choose isn't being used by another LLC in your state. You can typically do a name search on the Secretary of State's website ( here's Illinois' search tool , for example).

In general, you'll need to have certain words in the name that make it clear your business is an LLC, such as "Limited Liability Company," "LLC," or "L.L.C." Many states will also prohibit you from including certain words in the name. In New York, for instance, you can't include the words "academy," "bank," "finance," "union" and many more .

3. Pick a registered agent

Every LLC has to have a registered agent who acts as the point person for any legal matters that may come up and for the Secretary of State to send any official paperwork to. Generally, that person (or business) must have a physical address in the state where your LLC is registered and be available to receive mail there during working hours. They also have to be at least 18 years old.

You can name yourself as the registered agent, but it may not be the best idea. If you're worried you might not be available to serve as the point person or might not be able to keep up with important mail, it might be best to outsource this role. There are registered agent services you can use, though they'll come at a cost.

4. File your articles of organization

Next, head back to the Secretary of State's website to find the articles of organization that you'll need to file. You can also meet with someone in the department in person or by phone if you prefer.

The exact information you'll have to fill out for the articles of organization will vary by state. Still, you can expect to be asked for basic information like your LLC's name, address, services, and how you expect it to be managed. You'll also need to pay a filing fee.

Keep in mind that the articles of an organization may be called something different, depending on the state. Alabama and Texas, for example, call it a "certificate of formation." Some states also have publication requirements, which means you need to publish an announcement of your new business in a newspaper.

5. Create an operating agreement

While you'll likely divvy up responsibilities for anyone in your business on your own, you may also be required to do so via an operating agreement. These agreements outline how your business will be run and delegate roles and power to different members. That may include voting procedures, rules around daily operations, and ownership rights within the company.

Only some states require you to create this type of agreement, but it is a good idea to do so even if you don't technically have to.

6. Take care of other business tasks

Opening an LLC may be your first priority, but there are other tasks to take care of during the process, like getting your employer identification number (EIN). An EIN is an identifying number that the IRS will use for tax reasons, but it's not always required for opening an LLC.

You may also want to open a business bank account to ensure you keep your personal and business assets separate for bookkeeping and tax purposes. Plus, look into what exactly you need to keep your LLC active in your state, which may include filing an annual report.

7. Consider using a professional

A lot goes into opening and operating your own business, but you don't have to take care of everything on your own. Block Advisors , part of H&R Block, can help you decide which type of business structure is best for you, such as an LLC, and help you open that business. Using an online service to incorporate your business will help ensure that you submit all of the necessary paperwork required in your state of incorporation. This could save you time now and headaches later.

With Block Advisors, you're not on your own once your business is up and running. The service provides tax help, including filing your taxes with a professional or on your own with help from a live expert. You can also opt for one of its bookkeeping services , which range from a step-by-step guide to doing your own bookkeeping to working with your own dedicated accountant.

If you're looking to scale, Block Advisors also offers payroll services, which help you pay your employees each pay cycle and can make sure you stay compliant. There are three tiers to choose from — the basic service comes with a dedicated accountant, up to the premium service, which includes timekeeping, human resources assistance, and more.

*This article is for informational purposes only and should not be construed as legal advice. You may want to seek the advice of an attorney to evaluate all relevant considerations in forming a business entity. 

**Block Advisors discount may not be combined with any other offer or promotion. Void if transferred and where prohibited. Discount will appear in your cart automatically when you use the link. No cash value. Expires June 30, 2024.

Watch: AI expert explains how to incorporate generative AI into your business strategy

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Published: April 24, 2024   |   Last Updated: April 24, 2024

Tas tax tip: small business filing and recordkeeping requirements.

There are about 57 million small businesses and self-employed taxpayers in the United States, including:

• Corporations and partnerships with assets less than $10 million;
• Sole proprietors;
• Independent contractors;
• Members of a partnership that carries on a trade or business;
• Others in business for themselves, even if the business is part-time; and
• Gig workers ( i.e ., Uber/Lyft drivers, owners of Airbnb rentals, delivery services, etc.).

The Taxpayer Advocate Service is sharing the following information with small business taxpayers to:

• Help you meet your filing requirements;
• Share resources for information and tax return preparation;
• Help you file accurate returns.

Small Business Filing Requirements

Generally, the federal tax forms you will need to file vary depending on the type of business:

Recordkeeping

As a small business, you may have many different types of returns that are due, and many different types of deductions. As a busy small business owner, it’s important to put a user-friendly recordkeeping system in place.

You may need to substantiate income and deductions. Good records can assist you in preparing financial records, keeping track of property and deductions and so much more. Good records can also assist you in knowing exactly where to target funding and reducing expenditures to optimize profit. Your recordkeeping should keep track of:

• Gross Receipts;
• Inventory, including any merchandise withdrawn from sale for personal use; and

For more helpful information for small businesses, see Tax Tip: Small business tax highlights , which addresses key components of small business ownership including:

• The general types of business taxes;
• The importance of making estimated tax payments if required;
• Payment options; and
• Ten Federal Tax Tips to help small business owners:
• Know your limitations and know when you need to ask a professional for help
• Keep adequate records
• Separate your personal and business finances
• Correctly classify your business
• Manage payroll
• Subscribe to e-News for Small Businesses
• Research small business tax deductions
• Self-employment tax deduction
• Make your tax payments timely
• For faster processing, file your returns electronically

TAS resources

• Small Business
• Get Help: Self-Employment Taxes
• Get Help: Consequences of Not Filing
• Low Income Taxpayer Clinics
• Publication 5341 ,The Taxpayer Roadmap
• Publication 5341 (SP) , The Taxpayer Roadmap (Spanish)

IRS resources

• Small Business and Self-Employed Tax Center
• Self-Employed Individuals Tax Center
• Small Business Forms and Publications
• Publication 334 , Tax Guide for Small Business
• Publication 583 , Starting a Business and Keeping Records
• Publication 4591 , Small Business Federal Tax Responsibilities
• Publication 535 , Business Expenses
• Publication 463 , Travel, Gift and Car Expenses
• Employment Taxes and the Trust Fund Recovery Penalty (TFRP)
• Publication 505 , Tax Withholding and Estimated Tax
• Publication 542 , Corporations
• Publication 225 , Farmer’s Tax Guide
• Gig Economy Tax Center
• Publication 5369 , Gig Economy and Your Taxes: Things to Know
• Your Taxes in the Sharing Economy
• IRS gov: Need someone to prepare your tax return?
• IRS gov: Directory of Federal Tax Return Preparers with Credentials and Select Qualifications

Visit the Taxpayer Advocate Service’s Get Help center for a list of tax topics to assist you with resolving many tax related issues. For more updates from the Taxpayer Advocate Service, visit the news and information center to read the latest tax tips, blogs, alerts and more.

More From Forbes

How To Qualify For A Small Business Grant

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Starting a small business or a startup can feel both thrilling and overwhelming, especially when it comes to securing funding. While there are various options available, small business grants are a particularly attractive choice because they don't require repayment.

However, navigating the grant application process can be confusing.

Here is a straightforward guide to help you understand and qualify for small business grants:

1. understand what a small business grant is.

A small business grant is a sum of money given to businesses to help them grow and succeed. Unlike loans, grants are not required to be repaid, making them a highly desirable form of funding. Grants can come from government departments, corporations, nonprofit organizations, and foundations, each with their own set of objectives and criteria.

2. Determine Eligibility

Before diving into the application process, it’s crucial to determine if your business qualifies for grants. Eligibility can depend on several factors:

• Business type and size: Most grants specify the type of businesses they support, such as nonprofits, tech startups, or retail stores. Additionally, your business might need to fall under certain size specifications, often based on the number of employees or annual revenue.
• Owner demographics: Some grants are specifically aimed at supporting businesses owned by women, minorities, veterans, or other demographic groups. These grants often aim to level the playing field and provide opportunities for those historically underrepresented in the business world.
• Location: Many grants are location-specific, provided to businesses operating in certain regions, states, or communities, especially if the funding aims to stimulate local economic growth.

Huawei s Pura 70 Ultra Beats iPhone With Pioneering New Feature

The trump media stock price djt is about to adjust down by 22 7, sh gun episode 10 review a powerful finale but not what i was expecting, 3. find relevant grants.

Locating grants that match your business type, goals, and background is the next step. Here are some strategies to find grants:

• Use grant databases: Websites like Grants.gov , the Small Business Administration (SBA) site, and specific nonprofit organizations offer extensive databases of available grants.
• Network: Joining women's business groups, chambers of commerce, and other professional networks can provide leads and tips from other entrepreneurs.
• Local business development centers: These centers often have information on local grants and can assist in the application process.

4. Prepare Your Application

Preparing a compelling grant application is critical. Each grant has its own requirements, but generally, you will need to prepare the following:

• Business plan: Most grants require a detailed business plan that outlines your business model, market analysis, financial plan, and growth strategy.
• Financial statements: These may include profit and loss statements , balance sheets, and cash flow statements to demonstrate your business's financial health.
• Grant proposal: This is a key element of your application where you articulate why your business deserves the grant, how the funds will be used, and how the grant will impact your business and community.

5. Adhere to Application Requirements

Pay close attention to the grant’s application process:

• Follow instructions: Make sure your application meets all the specified requirements, including complete answers to all questions, required documents, and adherence to any specified formats.
• Meet deadlines: Grant applications often have strict deadlines. Late submissions typically are not considered.

6. Await Decision and Plan for Future Opportunities

It can take time for the review process, so be patient. During this time, continue to seek other funding opportunities and consider ways to strengthen your business and future grant proposals.

The bottom line is that securing a small business grant is not just about finding free money; it's about presenting your business as a viable, promising enterprise capable of fulfilling the grant's purpose. While the process requires significant effort, the potential benefits make it worth pursuing. For women entrepreneurs ready to take their businesses to the next level, mastering the art of applying for grants is a valuable skill that can open doors to new possibilities and growth.

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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Business | Historic Markley Hotel will be redeveloped as…

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Business | Historic Markley Hotel will be redeveloped as small-business, retail hub with student housing next door

People in Baltimore’s Lauraville and Beverly Hills neighborhoods have long known the sprawling brick building in the 4500 block of Harford Road as The Markley Hotel, though it’s not clear whether it ever hosted overnight guests.

A new chapter is starting for the former D. Markley Supply Co. seed and general store and warehouse as a community hub, with student housing for Morgan State University next door.

The historic Markley building, which sits on a 3-acre, former industrial tract that Baltimore-based MCB Real Estate purchased in 2022, would become a hub where food and retail entrepreneurs run stalls and kiosks. The $7 million project also involves transforming a second-floor loft into a gathering and event space for entrepreneurs and young professionals, along with offices. Construction is expected to start this summer.

Hamilton-Lauraville Main Street, which works to revitalize the Harford Road commercial corridor, began planning the 24,000-square-foot center after MCB donated the Markley building to the nonprofit group.

On the site’s remaining land, MCB is building a 151-unit Class A apartment building to house students from Morgan State’s campus less than a mile away. The apartments are expected to open by summer 2025.

Revitalization of the 4500 block, which has long struggled with vacant and deteriorating buildings, was seen as a critical link to Harford Road’s redevelopment, including new stores and restaurants, that has occurred both north and south of the site, said Daniel Doty, executive director of the Main Street group.

“There was just this huge property that was very difficult to do anything with,” Doty said. The redevelopment “is helping to bring life to the entire area.”

The Main Street group is redeveloping the Markley with the help of MCB and The Cube Cowork, an existing Harford Road-based business that calls itself the nation’s largest Black woman-run coworking space. The Cube will expand to the Markley and become the anchor tenant, leading the effort to attract and retain entrepreneurs. It will continue to run its current Harford Road location, where entrepreneurs lease its offices, co-working space, conference rooms and event space.

“Because the demand has been so high, in the sense of other services that entrepreneurs need, when we saw this space we thought that this would be a great expansion,” said Tammira Lucas, The Cube’s leader and small-business adviser. “This gives them a home. Something that they lack is a place where they can actually be stable but also not have the extreme overhead of a brick and mortar space.”

MCB, the development firm that purchased and is redeveloping Harborplace, decided to donate the Markley and work to repurpose it as part of its mission to foster overall neighborhood growth through its projects, said Amy Bonitz, MCB’s vice president of community development.

The idea for the new facility is to offer space for companies to grow and later potentially open their own stores or restaurants on Harford Road, Doty said. The vision includes offering affordable space for small retailers, food-based businesses, including a pop-up cafe, small media companies and other entrepreneurs.

“We aim to build something truly impactful here,” he said.

The group also is relying on help from the business and entrepreneurial programs at Morgan State’s Graves School of Business and Management.

The project was awarded a $2.5 million state historic tax credit as well as a $1 million grant from the Maryland Department of Housing and Community Development. Plans call for restoring the building’s signature two-story wraparound porch.

The property was initially used as a general store around the turn of the last century, selling farm seed and equipment to farmers on their way to markets in Baltimore, and a warehouse that supplied coal, said Reni Lawal, a development associate with MCB who researched the property’s history when applying for the historic tax credit. The Markley family once lived in upstairs quarters. Lawal said she believes the last member of the Markley family moved out in 1955.

The Markley was later used by a magazine, an adult day care program and a church. It has been vacant for about a decade.

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Capital Gazette eNewspaper

• Real Estate

Annapolis has an Ikea store — sort of.

The Swedish home furnishing company opened a new storefront this week in Annapolis Harbour Center. It’s not the sprawling footprint filled with affordable furniture and housewares. Instead, it’s what’s known as a plan and order point.

These are smaller stores dedicated to kitchen, bedroom and living room planning where customers can get home furnishing advice and expertise and then have items shipped directly to their home. They can also pick up online orders.

The store is at 2512 A Solomons Island Road in 3,219 square feet of leased space next to Bath & Body Works.

The company held a meet and greet for the Annapolis opening on Wednesday where Tony Giacona, market manager for Ikea U.S. delivered remarks. The first 50 attendees received a $25 Ikea gift card, and the first 100 people received a free FRAKTA bag.

“Whether you want to meet with an IKEA design specialist to transform your space or are simply looking for home furnishing inspiration, the IKEA Annapolis Plan & order point with Pick-up is a more accessible store format and meets our customers where they are and how they like to shop,” Javier Quiñones, CEO & chief sustainability officer for Ikea U.S., said in a news release.

This is the fourth Ikea location in Maryland. The others are full-sized stores in College Park and White Marsh and a plan and order location in Gaithersburg.

The Annapolis store is open daily from 11 a.m. to 7 p.m.

The recently opened Ikea Annapolis plan & order point in the Annapolis Harbour Center held an open house Wednesday. (Paul W. Gillespie/Staff photo)

J. Brown, an IKEA Sales Design Lead, helps a customer with kitchen design questions. The recently opened IKEA Annapolis Plan & order point with Pick-up in the Annapolis Harbor Center held an open house Wednesday. (Paul W. Gillespie/Staff photo)

The recently opened IKEA Annapolis Plan & order point with Pick-up in the Annapolis Harbor Center held an open house Wednesday. (Paul W. Gillespie/Staff photo)

The Planning Studio area. The recently opened IKEA Annapolis Plan & order point with Pick-up in the Annapolis Harbor Center held an open house Wednesday. (Paul W. Gillespie/Staff photo)

Swedish meatballs for the open house. The recently opened IKEA Annapolis Plan & order point with Pick-up in the Annapolis Harbor Center held an open house Wednesday. (Paul W. Gillespie/Staff photo)

The IKEA Pick-up point is located behind the store. The recently opened IKEA Annapolis Plan & order point with Pick-up in the Annapolis Harbor Center held an open house Wednesday. (Paul W. Gillespie/Staff photo)

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Change Number: 2024-0304 Effective Date: 03/04/2024

Small Business Participation Proposal

Small Business Participation Proposal (Sample Format)

The Small Business Participation proposalformat is designed to streamline and bring uniformity to responses and evaluations for Small Business Participation (FAR 15.304). The format provides clarity in that it is distinctly different than the Small Business Subcontracting Plan required for large businesses only (FAR 52.219-9). A copy of the format can be provided in your instructions to offerors or as an attachment to the RFP.

S mall Business Participation Proposal (Format)

All offerors ( both large and small businesses ) are required to complete a Small Business Participation Proposal. Offerors should propose the level of participation of small businesses (as a small business prime, joint venture, teaming arrangement, and/or small business subcontractors) in the performance of the acquisition relative to the objectives/goals set forth in the evaluation of this area.

( a) Check the applicable size and categories for the PRIME Offeror only -- Check all applicable boxes:

{ } Large Prime

{ } Small Business Prime; also categorized as a

{ } Small Disadvantaged Business (SDB)

{ } Woman-Owned Small Business (WOSB)

{ } Historically Underutilized Zone (HUB Zone) Small Business

{ } Veteran Owned Small Business (VOSB)

{ } Service Disabled Veteran Owned Small Business (SDVOSB)

(b) Submit the total combined dollar value and percentage of work to be performed by both large and small businesses (include the percentage of work to be performed both by Prime, joint venture, teaming arrangement, and subcontractors):

Example: If the Prime proposes a price of $1,000,000 (including all options), and small business(es) will provide $250,000 in services/supplies as a prime, joint venture, teaming arrangement, or subcontractor, the % planned for small businesses is 25%; and 75% for large business, equaling 100%.

Total Percentage planned for Large Business(es) ____75_% = $ 750,000

Total Percentage planned for Small Business(es) ____25_% = $ 250,000

100% = $1,000,000

(c) Please indicate the total percentage and dollar value of participation to be performed by each type of subcategory small business. The percentage of work performed by Small Businesses that qualify in multiple small business categories may be counted in each category:

Example: Victory Prop Mgt (WOSB and SDVOSB) performing 2%; and Williams Group (SDB, HubZ and WOSB) performing 3%. Results equate to: SB 5%; SDB 3%; HubZone 3%; WOSB 5%; SDVOSB 2%; VOSB 2%;). SDVOSBs are also VOSBs automatically; however VOSBs are not automatically SDVOSBs.

(d) Identify the Prime Offeror and type of service/supply that the Prime Offeror will provide. Then list each of the intended subcontractors and principal supplies/services to be provided by that subcontractor. Provide the Commercial and Government Entity (CAGE) code for the Prime and each intended subcontractor. Also, provide the anticipated NAICS codes(s) that the Prime Offeror believes best describes the product or services being acquired by its subcontracts with each intended subcontractor. Small business Primes and small business subcontractors that qualify as small businesses in multiple small business categories should be listed in each applicable small business category.

Example: If a Small Business qualifies as a WOSB and a SDVOSB, you can add them to each category below in which they qualify.

(1) Pursuant to Sections 8(d) of the Small Business Act, a business is considered small for Government procurements if it does not exceed the size standard for the NAICS code that the prime contractor believes best describes the product or services being acquired. In other words, the size of the prime’s suppliers is determined by the applicable NAICS code of their joint venture, teaming partner, or subcontract, which may or may not be the same NAICS code as the one for your prime contract with the Government.

(e) Describe the extent of commitment to use small businesses (e.g., what types of commitments, if any, are in place for this specific acquisition either – small business prime, written contract, verbal, enforceable, non-enforceable, joint venturing, mentor-protégé, etc.) Provide documentation regarding commitments to small business for this effort. Copies of such agreements should be provided as part of your small business participation plan and will not count against the page limitation for this volume.

AFARS Parts

Afars appendix.

• Data Initiatives
• Regulations
• Smart Matrix
• Regulations Search
• Acquisition Regulation Comparator (ARC)
• Large Agencies
• Small Agencies
• CAOC History
• CAOC Charter
• Civilian Agency Acquisition Council (CAAC)
• Federal Acquisition Regulatory Council
• Interagency Suspension and Debarment Committee (ISDC)

ACQUISITION.GOV

An official website of the General Services Administration