Planning a Business

Paid Vs. Free Business Plan Software — Which is Right For You?

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Kody Wirth

4 min. read

Updated August 9, 2024

Should you use free business plan software to write your business plan?

With the explosion of AI-powered tools over the last few years, there is now more “free” business planning software than ever (at least until you hit a paywall). 

So, it may be tempting to just grab the cheapest option available. But will that really help you achieve success? Should you trust planning your business (and livelihood) to free software?

Instead, we recommend asking yourself these three questions to determine whether paid or free business plan software (or a free template) is right for you.

Full disclosure: our business plan software, LivePlan, comes with a 35-day money–back guarantee instead of a limited ‘free’ version. So, you can try out our entire suite of business planning and financial management features risk-free.

1. What do you want to accomplish with your plan?

When evaluating business planning software, always keep your end goal in mind. Think hard about whether the business plan solution you’re considering is really designed for what you need it to do. 

Typically, paid business plan software is built to help entrepreneurs accomplish one or all of the following goals:

• •Test a business Idea: Writing a business plan helps you validate your idea, so you can determine whether or not to invest the time and money needed to make it work. Forecasting your potential revenue and comparing your idea to benchmark data helps make this decision easier.
• •Build a strategy: A strategic business plan gives you a roadmap for success. It helps you clarify your vision and provides an easy way to create milestones, track your growth, and update your plan as your business evolves.
• •Secure funding: Investors and banks expect to see a polished business plan that contains accurate financial information. It should follow a format approved by the Small Business Administration (SBA) and include clear details on cash flow, sales projections, and other financial data.
• •Grow your business: A business plan shouldn’t be a single-use tool. The best planning software out there provides you with financial forecasting and management features you can use to make impactful decisions, review your results, and adjust your strategy.

Most free business planning software and even AI-powered business plan generators will provide a platform to put together a business plan. However, these tools lack specific features, guidance, and assurances that will help you accomplish the above-mentioned business goals. 

So, before you invest in a free tool, figure out what features will help you use your plan as intended. Research what’s out there (be sure to scan customer reviews) so you can be confident that the tool you pick will be up to the task. 

If you can’t find any information about a free business plan tool, it may be wise to avoid it.

2. How much time do you have?

You don’t need an MBA to write a business plan. But if you’re creating one from scratch for the first time, you likely will need to invest time to get it right.

From articulating your marketing plan to building accurate financial forecasts, creating a detailed business plan on your own will require plenty of research, writing, and revisions. If you’re OK with that, you can use a free business plan template to help guide you.

But if you want to write a plan quickly, consider investing in business plan software designed to make the job easier. The software should include business plan builders that help you write a more detailed plan as well as a simpler one-page plan.

Additionally, some free (and even paid) business plan software overcomplicate the process. The builder itself is difficult to work with, locks features behind additional fees, and may even lack specific instructions to help you write your business plan. 

Again, before you commit to anything, check reviews, look at screenshots, and test a few business planning tools. If you’re unconvinced, opt for a free business plan template to keep you focused on writing instead of trying to learn a new piece of software.

3. How serious are you about starting a business?

Are you truly committed to starting or growing your business? Is building up a successful company your dream? Or is it just an idea that crosses your mind every now and then?

Your answers will probably give you the best idea of whether or not you should get paid or free business plan software.

Serious entrepreneurs should invest in professional tools, whether they’re buying heavy-duty equipment, delivery vehicles, or business software.

But maybe you’re not sure about becoming an entrepreneur, you don’t have a business idea yet, or you are just curious about what a complete business plan looks like. In that case, grabbing a business plan template or exploring some sample business plans is a great first step. If you find you need something more advanced, you can always switch to a paid business plan tool later on.

Choosing the right business plan software comes down to results

Free business plan software and templates might work fine in some situations. However, they are not the best tool for serious, growth-focused entrepreneurs.

Ultimately, what’s most important is that the business plan software you choose delivers the result you want. This might be securing a loan, building a strategy, or simply dreaming up new business ideas.

Do some research first. Read verified reviews, scan customer testimonials, and compare what business planning experts have to say about each solution. 

If paid tools offer a free trial or a money-back guarantee, then give them a shot. If anything, you’ll spend a few hours, find it’s not right for you, and walk away without spending any money. The important thing is that you still write a business plan. No matter what software you choose, it’s just a tool to help you get there.

Kody Wirth

Kody currently works as the Inbound and Content Marketing Specialist at Palo Alto Software and runs editorial for both LivePlan and Bplans, working with various freelance specialists and in-house writers. A graduate of the University of Oregon, he specializes in SEO research, content writing, and branding.