Whether you’re just starting out or have been in business for a while, creating a tech startup business plan is valuable. It will help you clarify your idea, assess its feasibility, and determine what resources you need to make it a reality. Here are some tips on how to write a tech startup business plan to will help you get started.
What is a business plan, and why do you need one for your tech startup?
A business plan is a written document describing in detail how a business will achieve its goals. This document lays out a written plan from a marketing, financial, and operational standpoint.
Sometimes, business plans are prepared for investors or as a requirement for a small business loan. But even if you don’t need outside funding, preparing a business plan is still a good exercise to ensure your ducks are all in one row.
If you’re considering starting a tech startup, having a business plan helps you to stay on track. When you have an idea for a new tech product or service, it’s easy to get caught up in the excitement and overlook the importance of creating a solid foundation for your business. A solid business plan will allow you to take a step back and think critically about your concept. At the same time, you’ll perceive how your concept will be received by the marketplace.
Furthermore, a good business plan keeps you focused on your goals and helps you track your progress as your tech startup grows. As your business evolves, you can refer back to your original business plan and adjust it accordingly. This document should be living and breathing, just like your tech startup.
Elements of a good business plan
The contents of your tech startup business plan will vary depending on your company’s specific needs, but certain elements should always be present. Here are the five key elements that every good business plan includes.
1. Executive Summary
The executive summary is a brief overview of your business plan. It should include your company’s mission statement, a brief description of your products or services, an overview of your target market, a summary of your financial projections, and your goals for the next three to five years.
Even though the executive summary should be the first section of your business plan document, it would be a good idea to write it last. This is because you’ll find all the important information from the other sections to complete the executive summary.
2. Company Description
The company description section of your business plan should provide an overview of your company’s history, mission statement, and core values. This section should also describe your company’s structure and how it will operate going forward. If you have any patents or proprietary technology, this is the place to mention it.
3. Market Analysis
The market analysis section of your business plan should research and describe your industry and the specific market segment you’re targeting. This information will be useful in developing your sales and marketing strategy later on in the business plan. Include information about your target customer’s needs, buying habits, and demographics.
4. Competitive Analysis
In the competitive analysis section of your business plan, you’ll need to identify and research your competitors—both direct and indirect. This portion is where you indicate their strengths and weaknesses relative to yours. Knowing what your competition is up to will help you develop strategies to stay ahead in the marketplace.
5. Sales and Marketing Plan
Your sales and marketing plan will detail how you plan to reach and sell to your target market segment. This part of the business plan should include information about your pricing strategy, promotional activities, distribution channels, and sales methods. You’ll also need to provide realistic financial projections for sales revenue over the next three to five years.
Tips for making your business plan stand out from the competition
Business plans are a dime a dozen. You need to go above and beyond the basics to make yours stand out from competitors. Here are a few tips on how to make your business plan shine:
1. Do your research
This may seem like a no-brainer, but you would be surprised how many people try to wing it when it comes to their business plan. Before you even start writing, take some time to research the industry, your competition, and your target market. This will give you a solid foundation to work from and will help you make your plan as comprehensive and impressive as possible.
2. Keep it concise
Nobody wants to read a 50-page business plan. Get to the point and be as concise as possible. This doesn’t mean that you should skimp on the details, but rather that you should focus on including only the most important information. The executive summary is a great place to start when it comes to being concise; make sure that you include everything!
3. Make it visually appealing
Remember, first impressions matter. Even if your business plan is top-notch, potential investors or partners will likely gloss over it if it’s boring or difficult to read. Use infographics, charts, and other visuals to break up the text and make your plan more enjoyable (and memorable) to read.
4. Proofread the document many times!
Last but not least, be sure to proofread your business plan before sending it off into the world. Nothing screams “unprofessional” louder than a poorly written document. So, take the time to edit and revise until your plan is error-free. Better yet, have someone else look at it for you. Sometimes, it’s easier for someone else to catch errors we overlook.
Final Thoughts: Writing A Tech Startup Business Plan
You now have a basic understanding of the components that make up a tech startup business plan. This is just a starting point, and your specific business will require more detail. But following these guidelines should give you a good foundation on which to build.
Besides a well-written business plan, you will also need the right team to help execute all the necessary actions to solidify your business strategy. When it comes to the tech talent side, Full Scale is the right match for any tech startup or even scale-up.
Full Scale houses the best and brightest software engineers, developers, and QA testers that you can find. You can forego the tedious process of finding, recruiting, and hiring developers for your tech team. We do all that for you and enjoy watching our client partners achieve great results.