Startup business is hard work, requires a lot of determination and only pays off in the long run. Customers may ‘like’ your product but they usually pay for their ‘needs’. Do your thorough research before divulging into starting a new business.
If you have landed on this blog post, either you have a startup or are planning to launch one. In any case, a business plan is crucial as this helps you and all stakeholders to be on the same page and align business goals.
A business plan is a blueprint or can say a roadmap which describes the purpose of the company, structure, product and services, financial plan and the market analysis with penetration rate.
Technology startups business plan is helpful in testing the viability of your new product, fundraising, business loan, and more. Whatever your objective is, we are detailing all the important details which you should not-miss in the business plan.
Table of Contents
A step-by-step guide
Step 1 Executive summary
An executive summary is a quick overview of what your company/product/service does and what’s unique selling proposition. It sums up all of the business plan and serves as an introduction part. A well-documented summary shows clearly what your startup is all about and how it will capitalize on its resources in years to come.
Executive summary is where you have to hook the reader either the investor, the partner or your employees because from there they will decide whether they will read the whole document or not.
Let’s list down all of the important parts of the executive summary so that you get to know ‘how to write an executive summary for a business plan?’
Do’s and don’ts of executive summary
-Sell your business in the opening paragraph
-Give synopsis of every part of the business plan
-Write executive summary at the end of the plan
-Keep the summary short and to-the-point, not more than 2 pages
-Don’t write for yourself instead for your readers
-Use an engaging tone
-Don’t use unrealistic information, investors are usually experienced and sense the hype
-Don’t forget to proof-read
Step 2 – Market size and opportunity
Market size is the total number of likely buyers of your product or service from a given market. Whenever you prepare a market analysis with size, you focus on your target customers.
This helps investors to think of the profit a product would make thus helping them make a decision on whether they should invest or not.
Let’s estimate market size by following these steps.
Do’s and don’ts of market size estimation
-Defining target audience is crucial either use top-down or bottom down approach.
-Generalized sizing won’t reap much hopeful results.
-Don’t just evaluate best-case scenarios.
-Do monitor initial assumptions and keep on testing.
Step 3 – Company structure, goals, history, location
A business mission statement is part of your ‘company description’. Experts recommend updating company descriptions with time as the company grows. Primarily a company description in the business plan includes business name, goals, competitive edge, target market, location, mission statement, products, structure and team.
Do’s and don’ts of company description in a business plan
-To the point and brief
-Don’t lie, tell the exact hierarchy a company has.
-Your competitive edge or advantage should be convincing
-Do include achievements over the period of time in the company’s history.
Step 4 – Product / Service description
This part of the business plan shares your product details such as cost, features, distribution, target market, competition, production concerns and unique market gaps.
Product description isn’t just mentioning the product features but also to highlight compelling features not elsewhere in the market like high quality or economical price range etc. Even a simplest product has something unique to offer. Do you know mass popularity and exclusive distribution are also considered under strengths of the product?
Do’s and don’ts of product description
-Do miss out on your powerful features.
-Reviews and endorsements add credibility, do add if you have.
-Don’t use jargon or manipulate features. Avoid repetition.
-Do position your product differently. Use product pictures/videos.
Step 5 – Financial plan, revenue streams, projections
A business plan can never be devoid of financial plan. It tells your company budget (have or required), and sales goals (showcasing numbers).
Finances are the most challenging part for entrepreneurs. This is because they don’t have cash flow reports, balance sheets or stable income for making future projections
Do’s and don’ts of financial plan
-We recommend using the bottom down approach for exact narration of profitable numbers.
-Don’t add unrealistic figures if you are not confident.
-Do mention revenue forecasting for at least 3 years.
-Make sure planned revenue exceeds company expenses.
Free business plan templates
Template 1 (Download in PDF)
Template 2 (Download in PDF)
An elaborative business plan highlights business opportunities and chances of covering the current market gaps and how soon the product will penetrate. The process of writing a business plan is long and sometimes tiring, however every startup should go through it.
Ideally, after completing a compact and detailed business plan, you should go for an MVP (minimum viable product). Are you already building your product’s MVP and looking for a development service? Tell us your requirements and we will share estimates with you.