Every business wants more traffic, sales, and revenue. But, without a business plan for your stratup it becomes tough to get the growth you are aiming for. Writing a formal startup business plan increases your chances of success.
A business plan is probably the most common thing prepared by businesses. It reflects the business vision and has a robust plan that shows how to solve the upcoming challenge and a pathbreaking pitch for the potential investor.
But wait, creating pages after pages of a business plan is really not worth the effort. After all, no one has the time to read the entire book that you create. So here, we will talk about the best ways to prepare a startup business plan.
6 Tips to Write a Startup Business Plan
Here are the tips to write a business plan for your startup.
1. Prepare The Unique Pitch For Potential Investors
It is advantageous to create the pitch deck. When you create an intriguing pitch deck for potential investors, it can become a worthy investment. It generally has 15 to 20 PowerPoint slides that elaborate about the company. It must showcase the technology, team and premium products to the investor.
It is typically a challenging endeavour for startups to raise capital by convincing investors. This can be time-consuming, and hence developing a financial plan for startup business with a pitch deck that is represented as a story can absolutely nail it. However, you need to bear in mind that the presentation is short and understanding.
Your startup plan with pitch deck must cover the following topics:
- A comprehensive overview of the company, including the mission and vision of the company.
- A team that will work on the background.
- The problems that you have focused on and the solution in detail.
- How big is the market opportunity for your business? Who are the competitors?
- What technology are you using?
- Are customers looking for similar products?
- A detailed financial structure with profit and loss margins.
- Your ask for the capital to start the business.
Focus on the following things properly while creating the startup business plan. When your business plan includes every detail and financial projection, it becomes easier for the investors to decide if your startup is worth the ask and investment.
2. Focus On Creating A Prototype
If you are a product based company, then your business model must include a solid product prototype. The prototype that you develop gives knowledge to investors about your vision and how likely you can achieve your business goals. No doubt that the first prototype will always be like a beginner and a lot less advanced than upcoming versions, but it can be a good choice to show the prototype as a startup business plan example.
Of course, you have to justify the MRP you have set along with offering the right numbers of profits and manufacturing. Including these intrinsic details in your startup business plan puts you ahead of the competition.
Also Read: 13 Tips to Naming Your Startup Business
3. Be Very Sure About The Competition And Market Opportunity
Thorough research is a must in a business plan. You cannot include information based on your guesswork, but your research work will be more defining. So, you must check the products and their market opportunities. Remember that investors will only be convinced when they find a big market with less competition.
You can expect to have some questions coming up from the side of investors “how are you different from others?”, “How to stay on top even when competitors start showing up?” and many more. Your product must be unique in its manufacturing that competitors will not be able to crack until they have similar technology and infrastructure.
4. Create A Comprehensive Financial Projection
Remember that everything comes down to the number of digits the new business will provide. So, a lean startup business plan with a detailed financial projection is highly valuable. It becomes easy for investors to make their decision.
Here are some of the prime reasons that make financial projection a crucial part of a startup plan.
- It helps investors comprehend whether the new business will be profitable in the market or not?
- It provides the investors with a comprehensive knowledge about the capital amount you need for your startup.
- It is highly effective in making financial decisions like explorer expenses, product price, development cost, marketing cost, gross margins and a lot more.
- It helps to answer the financial projection when investors ask for answers.
You must not be worried about whether the financial projections match the actual outcome, as they will not. However, it provides important details to investors about your business.
5. Be Clear About The Power Structure
Your startup business plan must cover the structure of a new business. For a small company, it is easy, but for a larger business model, you need to define it. Sorting the structure sooner can offer clarity to the investors.
Don’t make it complicated but create a hierarchy to make it clear and easier to understand. Including the structure of the business model can also help in its operations.
6. Develop A Clear Marketing Plan
Remember that your startup business plan must have a solid marketing plan. Whether you are launching an ecommerce business, tech company, or construction company, marketing plays a major role.
So remember that you plan a marketing strategy based on the capital you are asking for and your business model. It is always recommended to say a cost-effective plan for the best results.
So, now that you have acquired detailed knowledge about business plans with a proper startup roadmap, you will find it easier to create yours. Remember to include every single detail mentioned here for a complete business plan. However, don’t make it too long but just appropriate to keep investors engaged in the business plan.