The business plan for a startup is an indispensable economic-financial document that is part of the fund search, even for opening a startup, and is useful for presenting your idea to investors with the utmost professionalism.
By reading 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: WHAT IS IT?
We at Maven Business Plans understand the business plan of a startup as a real action plan, where they come from:
- competitors analyzed;
- list the characteristics of the idea;
- define marketing strategies;
- analyzed the market with the relative market share to be attacked;
- and much more.
All accompanied by a document, the balance sheet, that the lenders want to see to touch and understand the business opportunities to the market, how they plan to acquire customers or users, and how they plan to generate value and revenue.
WHY MAKE A BUSINESS PLAN FOR YOUR STARTUP?
It is important to make a business plan to be clear about the goals you want to achieve and how to achieve them. The business plan defines the strategy and action plan for 1, 3, and sometimes even 5 years.
Very often, your startup’s business plan is requested by investors or, in general, in all situations where you want to finance your startup and attract new business partners or directors.
An investor is interested in knowing how big the market you are attacking is, your business model, the marketing strategies, and the acquisition of new customers that you would like to implement, without forgetting your business idea and your team. All this is to understand how much your project is worth.
BUSINESS PLAN FOR A STARTUP: WHAT IS IT MADE OF?
Many are wondering what a business plan for a startup consists of and how to do it.
A startup’s business plan consists of 11 parts, including the executive summary.
The introductory page is as if it were the Home Page of your Business Plan, the first thing that investors will see. You will have to enter the logo and full name of your startup and the contacts with which interested parties can contact you.
EXECUTIVE SUMMARY FOR STARTUP
The second part of your startup’s Business Plan is called the Executive Summary and 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 born? 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 the Financial Plan, or the financial projections for startups, 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 you have set for yourself and what 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 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, demographics, and socio-behavioral characteristics.
MARKET AND COMPETITION
When analyzing the market you want to attack, a fundamental aspect to consider is its trend.
You will also need to present the results of the competition analysis to let investors understand what type of market you are entering and show them your strengths compared to theirs.
You must describe how you want to position your product on the market, what the pricing policy is, 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 on your side can only be an advantage, and investors know this well.
Define the role and skills of each, which 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 FOR STARTUP
And to finish off 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;
Do not put outrageous numbers as investors recognize a “rigged” business plan.
So, try to be as honest as possible, and make them plausible even if your estimates remain estimates.
A badly neglected Business Plan is always worse than an unexpected success.
Often then, 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 of the form, how do you write a business plan for startups?
DO NOT BE AFRAID
The vast majority of startups are not business savvy. Their greatest school is practice and experience in the field.
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.
We also teach you a little trick to see how many examples of real startup business plans you want. You can go to the main equity crowdfunding platforms and log in; this way, they can access the bp of crowdfunding startups. I also used this method.
HOW MUCH DOES A BUSINESS PLAN COST?
We at Maven Business Plans know very well how 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 sector specialists who have always been dedicated to the world of startups.
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. For example, a startup that has just started will have different needs than a startup that has already been on the market for a few years.
In general, however, the price is between 2000 and 4000 USD.
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