The business plan for a startup is an indispensable economic-financial document. It is part of the fund search, even for opening a startup, and is useful for presenting your idea to investors with the utmost professionalism.
In this article, you will learn:
What is a business plan?
How to compile and make a business plan for a startup.
Are you interested? Let’s get started right away!
BUSINESS PLAN: DEFINITION
A business plan for startups can be defined as:
“It is an economic-financial plan that allows to define and summarize the business project, the strategic lines, the objectives and the patrimonial, economic and financial planning of the company.”
BUSINESS PLAN: WHAT IS IT?
The business plan of a startup is a real action plan. Where they come from:
The business plan of a startup is a real action plan. It must include:
- Competitors analyzed;
- List of the characteristics of the idea;
- Marketing strategies;
- Analyzed the market with the relative market share to be attacked;
- And much more.
The financial statement is a document the lenders want to see to touch and understand the business opportunities in relation to the market. It helps lenders know how you plan to acquire customers or users and how you plan to generate value and revenue.
WHY MAKE A BUSINESS PLAN FOR YOUR STARTUP?
It is vital to make a business plan to be clear about the goals you want to achieve and how to achieve them. In fact, the business plan defines the strategy and action plan for 1, 3, and sometimes even 5 years.
Very often, the business plan of your startup is requested by investors. Or in general, you may need a business plan when you want to finance your startup or attract new business partners or new directors.
In fact, an investor is interested in knowing how big a market you are attacking, your business model, and your marketing strategy. In addition, he wants to know how to get new customers. It’s all about understanding how worthwhile your project really is.
BUSINESS PLAN FOR A STARTUP: WHAT IS IT MADE OF?
From saying let’s move on to doing, that is to create a business plan. Many of you are wondering what a business plan for a startup consists of and how to do it.
The business plan of a startup consists of 11 parts, including the executive summary.
Compiling it in all its parts requires a considerable commitment, both time and resources. Companies generally employ even more than one resource to create it.
Assuming that you can’t even get close to venture capital without a business plan, we show you a well-structured business plan. Here, then, is how a business plan for a startup is structured:
- Cover Page
- Executive Summary
- The company
- The Product and the Technology
- Analysis of the customer and the problem
- Market and Competition
- SWOT Analysis
- Marketing Plan
- The team
- Economic and Financial Plan
Let’s see each in detail.
The introductory page is as if it were the Home Page of your Business Plan. It is the first thing that will be seen by investors. You will have to enter the logo and full name of your startup together with the contacts with which interested parties can contact you.
The second part of your startup’s Business Plan is called the Executive Summary. It contains a summary of the business plan and what investors are about to read.
In this section, you need to enter a concise description:
- Of your startup; (when was it established? its company form? and where is the headquarters?)
- Of your business; (what it does and what problems it solves);
- Your business model and metrics achieved;
- Of your Financial Plan or the financial projections, the capital to be raised and that already raised.
In this part of the Business Plan, you have to briefly describe what the startup does or what it would like to achieve. But not only that, but you must also include the mission and vision that you have set for yourself. Moreover, also explain the market needs to which you have found a solution.
THE PRODUCT AND THE TECHNOLOGY
This is the space to deepen the description of your product and of the present and future technology. What differentiates your product from that of competitors? Do you have trademarks or patents? How do you imagine its evolution in the future?
ANALYSIS OF THE CUSTOMER AND THE PROBLEM
No investor cares about a startup that doesn’t have potential customers. In this part of the business plan, you must therefore be able to demonstrate how much customers want your product.
To do this, describe your buyer personas, their demographics, and socio-behavioral characteristics.
If you already have billing cycles, expose the analysis of these.
Also, describe the problem you want to solve.
MARKET AND COMPETITION
Here you have to talk about your target market. Discuss the market share in which your project will fit is analyzed and what are the future prospects. Usually, to do this, the analysis of the TAM SAM SOM is used.
A fundamental aspect to take into consideration when analyzing the market you want to attack is its trend.
You will also need to present the results of the competitor analysis. It helps the investors to understand what type of market you are entering. And it shows them your strengths compared to your competitors.
In this section of your startup’s business plan, you will talk about your strengths and weaknesses compared to the competition. Also, explain here the opportunities and threats you see in your project through SWOT analysis.
You must describe here:
- How do you want to position your product on the market?
- What is the pricing policy?
- How to promote it?
- Which acquisition channels to use?
- And how much you think it will cost to acquire new customers.
Now you have to show that you clearly understand the next operational steps. You can do this by defining any results and metrics already achieved or by defining a detailed map of the next steps and milestones.
No less important is your team. Within a business plan, proving that you have good people alongside can only be an advantage, and investors know this well.
Define each person’s role and skills, who are the key figures, and any advisors.
It also explains the prospective human resources plan. If and how your organization will change over time.
ECONOMIC AND FINANCIAL PLAN
And to top it off with your business plan, prepare a financial plan.
This is the numerical part of the business plan where you can enter:
- Financial strategies;
- Sales forecast;
- Loans and investments;
- Income statement;
- Financial statement;
- Pre-money evaluation.
Do not put disproportionate numbers as investors recognize a “rigged” business plan.
So try to be as honest as possible, and even if your estimates still remain estimates, make them plausible.
A badly neglected Business Plan is always worse than an unexpected success.
Often, together with the Business Plan, you will also have to prepare a pitch deck.
A brief and clear presentation of your business idea.
SOME TIPS ON HOW TO WRITE A STARTUP BUSINESS PLAN
Now you know everything about creating a business plan and what absolutely must not be missing.
Speaking instead of the form, how do you write a business plan for startups?
The rules to be respected are the following:
Business plans should always be short and concise. This is for at least two reasons:
You want them to be read, and no one will read them if it reaches 40 pages;
You must constantly use and update it to manage and grow your startup. The more concise the Business Plan, the easier it will be to review and correct it.
THINK ABOUT WHO AND WHERE TO READ
When creating content, you must always think about the audience it is intended for. This rule also applies to the Business Plan of a startup.
For example, if you’re developing a complex biological process and your potential investors aren’t scientists. So, avoid jargon or acronyms they won’t know.
Imagine being in their place and having to invest in a project whose benefits and potential you do not understand. You just wouldn’t do it, and neither would a serial investor.
DO NOT BE AFRAID
The vast majority of start-uppers are not business savvy. Their greatest school is practice and field experience.
Writing a business plan may seem like a big hurdle, but it doesn’t have to be. Know your startup. You are the ultimate expert. For this reason alone, writing a business plan should be easier.
HOW MUCH DOES A BUSINESS PLAN COST?
We at Maven Business Plan know very well that drawing up a startup’s business plan is not a joke. So if you care about your project and want an effective business plan, you can contact our specialists who dedicatedly help startups run their businesses successfully.
At this point, you are wondering, “how much does a business plan cost?” The answer varies depending on the company you are targeting and the specific characteristics of your startup. A startup that has just started will have different needs than a startup that has already been on the market for a few years.
However, we assure you that our business plan cost will not put a dent in your budget. So feel free to contact us to make a business plan for the startup.