If you decided to launch a startup, don’t forget to write its tech startup business plan first. Business planning is essential and crucial for a newly-created business concept. Having a preplanned strategy allows you to allocate and eliminate possible risks and get ahead of your competitors. Risks trigger other important factors such as time and budget resources. And, if you are just getting on the market, these resources might make you fall behind significantly.

According to Excellentbusinessplans.com, businesses have more than a 30% chance of growth due to writing a software startup business plan. So, this article will speak about how to create a startup business plan of great use to entrepreneurs. Build your tech startup as a pleasant journey with the exact 7 steps of business planning that will allow you to win the competition.

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Contents

Why do Startups Need a Software Startup Business Plan?

What is a technology startup business plan?

A tech business plan is a document that includes a detailed description of the startup’s objectives and the road to achieving goals. Usually, it’s a defined roadmap of marketing, financial, and operational procedures. – Investopedia

So, the need to write an IT startup business plan lies in the fact that any business can have a fully-described insight into its future operations.

For example, a tech startup business plan template has to include the following data:

  • an executive summary, which is the mission statement, and information about the leadership, startup employees, and its location;
  • products/services offered, where everything a business wants to do should be enlisted. I.e. a startup wants to create AI technologies, so it mentions what type of technologies, their cost, lifespan, and potential benefits to the end-users. And, also, research and development information about the product/services is always welcome;
  • particular market analysis, where businesses can analyze the potential need of their product/service as well as the direct competition. This information will allow us to build a startup based on innovation, and strengths and eliminate weaknesses if possible;
  • a marketing strategy, which can inform on the potential ways the business will use to attract end-users and how the company will reach them. Perhaps, advertising or marketing campaigns are needed? Social media to speak about the product/service? Any channel that will help more customers get engaged will do, but you still have to define it first;
  • financial planning, which is composed of the potential targets and estimates for a couple of years ahead. With financial plans, you can attract the much-needed investors and prove to them your startup is going to make it with the concrete yearly estimations;
  • a budget, where you should mention the costs to develop and design software, staffing, marketing campaigns, office, and extra spending. Having defined what you need costs for allows you to operate these costs in a more efficient way;
  • a team that will work for you, share your goals and ideas, and lead your startup to success.

Steps of How to Write a Technology Startup Business Plan

Providing Great Clarity

A startup tech company business plan pushes you to articulate your business objectives and goals in down-to-earth terms. Instead of vague aspirations like “grow the business” or “increase revenue,” you define specific and measurable targets like “increase website traffic by 30% in the first quarter” or “achieve $100,000 in sales within the first year”

This clarity allows you to track your progress objectively. You can compare your actual results to the goals outlined in the business plan, enabling you to see whether you’re on track or need some adjustments.

Increased Probability Of Success

A well-structured business plan helps you stay focused on your objectives and minimizes the likelihood of drifting off course. By identifying potential challenges and threats to your startup, you can develop proactive strategies to mitigate them.

A business plan helps you allocate your resources — financial, human, and time — more efficiently. Outline your budget, staffing needs, and project timelines to ensure that you have the necessary resources to execute your strategies effectively. With market research and analysis, you can make informed decisions, tailor your products or services to meet market demand and stay ahead of your competitors.

Higher Probability Of Receiving An Investment

If you’re seeking external funding, a well-prepared business plan can attract potential investors. It gives them a clear and detailed understanding of your business, including your market strategy, competitive analysis, and risk mitigation strategies. By addressing these risks proactively, you show investors that you know the potential pitfalls and have a plan to navigate them.

And, of course, investors are keenly interested in the financial prospects of a startup. Your business plan includes financial projections, which help potential partners assess the possible return on their investment.

8 Steps on How to Make a Tech Startup Business Plan

Writing a business plan for a tech startup isn’t a one-day process. It is a commitment you should engage in at least for some time. But where should you start? There are the following sections to think about: technical plan, executive plan, marketing plan, financial plan, staffing plan, etc. But, we’re here to help you out with the technology startup business plan template.

Tip #1. Start with a company description

The company description will surely include the company history, its location, type of business (industry, sector) it provides. Also, it will mention the leadership team, employees and management team, and company missions and principles.

What would this kind of information technology startup business plan detail do for your business? It’s easy. Anyone interested in your startup will achieve a complete understanding of who you are and what are you going to offer to the end-users. In the other words, you have to have a unique identity that is both informative and catchy.

Steps of How to Write a Technology Startup Business Plan

Everything you need to know about digital product development phases!

Tip #2. Proceed with a tech startup business model

Launching your startup you have probably had the thought of where it might lead you. But, this thought has to be put on the official paper as well. You need to define your business’ scaling strategy and business opportunities. So, mention how are you planning to grow and what should be the numbers. Include financial aspects, employees, technologies, and, basically, everything, that will be enhanced and should be doubled in the process.

Tip #3. State how are you going to get noticed on the market

The only way you can let everyone know about your business is to lead the right marketing campaign. Here, you should analyze your target audience, conduct surveys, analyze competitors, and create a user persona. On analyzing competitors use the SWOT model. In creating your potential buyer persona, make sure you have included all the valuable information.

Steps of How to Write a Technology Startup Business Plan

Tip #4. Consider the financial aspect of your business

Financially, it is vital to know beforehand what costs you will need to invest and what revenue you will achieve. So, while creating a business plan for a startup, the section with money requires additional effort. Here, you might need to include: a balance sheet, expense projection, income projection, cash flow projection, monetization strategy, other pricing, and a business sales plan.

What has to be done in the first place? Financial planning should ground in business planning. It should be a clear and realistic presentation. And, most importantly, use templates to make this process a bit easier for you.

Guidelines for Creating a Financial Plan

  • Develop a sales forecast, considering market size, growth rates, pricing, and competition.
  • List all the initial costs, including equipment, legal fees, marketing expenses, and working capital.
  • Determine how much funding your startup needs to cover initial costs and sustain operations until it becomes profitable.
  • Conduct a break-even analysis to determine the point at which your startup’s total revenue equals its total expenses, resulting in no profit or loss.
  • Calculate gross margin, net profit margin, return on investment (ROI), and return on equity (ROE).

Tip #5. Think about your future business team

The leadership team is partners that should consist of the CEO – Chief Executive Officer, who will be responsible for the main processes in the company. Then, the startup should have a CTO – Chief Technology Officer, who is responsible for research and implementation, and the technological part. Also, there is a need for CMO – the Chief marketing officer, who is the one to involve potential customers and make them pleased with the product/service. Last but not least is the CSM – Chief Sales Officer, who closes the deals with potential clients and sells your product/service.

Need a skilled CTO? How to find a CTO for your startup? – click and have a look!

Among the leaders, you should think about the management team – project managers, developers, designers, testers, and other employees per your business need. Scalability is a must if you opt to grow further.

Inoxoft offers some tips on how to hire developers for startup!

Tip #6. Write an executive summary of your business plan

Executive summary of a business plan for a software startup should be written last as it will summarise everything that you have defined and described before. It is of a certain structure, which makes it easier to read. With its help, you will catch the much-needed attention of a reader, and show him/her the real fact and the exit strategy. Avoid unnecessary wording and passionate over-positive thinking here. Be realistic, and show you can provide reasoning and decision-making. Be innovative.

Tip #7. Add anything you might consider valuable (appendix)

The appendix section usually includes every additional fact or infographic that was mentioned in the business plan for a tech startup. So, these might be charts, tables, illustrations, patents, trademark documents, credit history, additional documents, market analysis, production plans, and operations planning. All the features your stakeholders might be interested in.

Tip #8. Prepare a Great Pitch Deck for Prospective Investors

A well-structured pitch deck typically includes the following sections:

  • A brief overview of your startup and its mission
  • The problem or pain point that your product or service addresses
  • Your innovative solution and how it effectively addresses the identified problem
  • The market size, growth potential, and target customer segments
  • Your pricing strategies, sales channels, and distribution models
  • The key members of your team and their relevant experience 
  • Your financial projections, including revenue, expenses, and profitability 
  • The amount of funding you seek and how you intend to use it
  • Your exit strategy

Pitch Deck Do’s

  • Craft a compelling narrative that captures the essence of your business and its potential.
  • Employ visuals like charts, graphs, and images to illustrate key points and make the presentation engaging.
  • Use bullet points, brief sentences, and compelling storytelling to convey your message effectively.
  • Customize your pitch deck for different investor meetings.
  • Practice delivering your pitch multiple times to ensure you can present it confidently and within the time limit.

Pitch Deck Don’ts

  • Don’t overwhelm your pitch deck with excessive data or information. 
  • Don’t use jargon or overly technical language that might confuse investors who are not experts in your field.
  • Don’t ignore potential challenges or risks. Address them honestly and discuss your strategies for mitigating them.
  • Don’t forget to emphasize the market opportunity. Investors want to know there’s a sizable and growing market for your offering.
  • Don’t dismiss feedback from mentors or advisors. Use their input to improve your pitch deck.

5 Tech Company Business Plan Templates

A well-designed presentation makes a positive impression on your prospective investors. But don’t spend too much time creating it from scratch. With professional templates, you can use a pre-designed structure and focus on adding content while adhering to a consistent format.

Many templates are readily available for free or at a low cost. Let’s overview the most promising ones:

Business Plan Infographic PowerPoint

With the PowerBiz PowerPoint template, you can showcase your ideas using visually engaging infographics. Key features:

  • 200+ unique custom slides
  • Fully editable with resizable vector
  • Easy to change colors and text
  • Bright and dark theme versions
  • Super custom animated effects

Pricing: $7.40/mo for unlimited downloads, $21 for a personal license (one non-commercial product), and $63 for a commercial license.

Emaze Business Planning With Analytics

Emaze has many creative tools for teams to collaborate and make unique presentations from ready-made templates. Key features:

  • 2D & 3D solutions
  • Eye-catching animations
  • Mobile-friendly creation
  • Customizable blueprints
  • Analytics tools
  • Multiple sharing options
  • Industry-specific solution

Pricing: Free Basic plan for 5 projects, $9/mo for Pro plan, $25/mo for Business plan, etc

Lean Canvas 1-Page Business Plan

Lean Canvas is a valuable tool for entrepreneurs and startups to quickly sketch out, validate, and iterate on their business ideas in a structured and efficient manner. Key features:

  • A 1-page business model 
  • It takes 20 minutes to create
  • Quickly updates

Pricing: $0 for a founding team of up to five people working on the same project.

StartUp Pitch

StartUp Pitch has everything you need for a standard business plan tech startup, like SWOT analysis, competitor evaluation, and project schedules—all pre-prepared for you.

  • Full financial forecast
  • Easy pitch/plan export
  • One-page pitch builder
  • 550+ sample plans
  • Support by email and chat
  • A 35-day money-back guarantee

Pricing: $20 per month for the Standard plan and $40 per month for the Premium plan, with $20 for the first month.

Consider Inoxoft Your Trusted Partner

Inoxoft is an international software service provider with more than 7 years on the market. We help startups achieve excellence with their products/services and succeed. Explore our software development for startup services and benefit from the quality end results!

Inoxoft finds business planning for tech startups one of the most needed steps in setting the right priorities. We engage in writing a startup business plan and may give valuable insights as to your solutions.

If you still don’t know how to make a tech startup business plan or need a consultation on your startup project idea – book a call with us and receive a free consultation!

Find out what’s KPI in software engineering!

Final Thoughts

This article has summarized how to make a business plan for a startup. If you are just launching and think that planning ahead is something you should skip – that’s wrong. Consider 7 tips provided by Inoxoft and become a profitable unicorn one day!

Frequently Asked Questions

What is a software startup business plan?

A tech business plan is a document that includes a detailed description of the startup’s objectives and the road to achieving goals.

What to include in the business plan for tech startup?

  • an executive summary 
  • products/services offered
  • particular market analysis
  • a marketing strategy
  • financial planning
  • a budget
  • a team

What are the tips for writing a startup business plan?

  • Tip #1. Start with company description
  • Tip #2. Proceed with a tech startup business model
  • Tip #3. State how are you going to get noticed on the market
  • Tip #4. Consider the financial aspect of your business
  • Tip #5. Think about your future business team
  • Tip #6. Write an executive summary of your business plan
  • Tip #7. Add anything you might consider valuable (appendix)