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.
Why do startups need a software startup business plan?
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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.
To ensure all these important fields were covered, let’s discuss how to write a tech startup business plan in several steps. This process should not be neglected and taken for granted for if you fail to provide a consistent tech company business plan, then you’ll appear among the 50% of startups that couldn’t make it further.
7 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.
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.
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.
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.
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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.
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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. Basically, all the features your stakeholders might be interested in.
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!
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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!