When launching a startup, having the right business plan is essential. This is especially true if you are looking to secure investment capital from investors.
The business plan outlines the company’s vision, future, and goals. It also includes marketing strategies and financial projections. This article will cover how to write a Startup Business Plan, including an executive summary.
Company Summary
The company summary distills the information in all the other chapters of your plan, giving time-crunched reviewers a brief overview that persuades them to read on. It should include your background, your business concept and goals, market evaluations, startup costs and financial projections.
Lenders and investors want to know who you are and the track record behind your startup business. Include your name and any other owners in the business, as well as a description of the current company size and growth potential. Proofread the company description for spelling, punctuation and grammatical errors that will detract from your credibility. Consider enlisting the help of a professional business plan writer or editor.
Products & Services
The business plan section that details the company’s products and services is the heart of any startup. It showcases the core customer need and how the company will address it, enabling investors to make informed investment decisions.
The business plan also provides a roadmap for future growth and profitability. It includes revenue projections, expenses, and the break-even analysis. It may also include information on how the company will differentiate itself from the competition. It may also detail the team members and their competencies. This is important for potential new hires and when seeking partnerships. It also allows investors to determine whether the company is a good fit for their portfolios.
Market Analysis
This is the section that will show how large the market is for your products, as well as an analysis of your competitors. This is a crucial part of the business plan for both convincing investors and for determining how much you should charge for your products to break even on startup costs.
It is easy to overlook important constituencies when writing a business plan, particularly for start-up businesses that lack established revenue streams. Too many business plans focus on describing the innovation or creativity of their product or service and fail to adequately gauge market response from potential customers or investors. It is important to take the time to analyze the market before beginning production.
Management Team
Whether you’re the sole owner or have partners, present your management team and how their talents will contribute to your business plan objectives. Include biographical information for each key team member, as well as their education credentials, notable accomplishments and employment history.
A well-written business plan will make it easier to set goals and stay on track. But, goals without accountability are often just a waste of time. Use Wrike project management software to create measurable milestones and ensure teams deliver on their promises. Start a free trial today.
Funding Requirements
Many entrepreneurs require external startup funding to make their idea a reality. To attract investors and increase your chances of securing an investment, you need a well-thought-out business plan.
The business plan will help you identify your ideal market audience, their needs and problems and how your product or service solves them. It will also serve as a roadmap for achieving your goals and milestones.
With a well-crafted business plan, you can streamline work and showcase your progress to stakeholders. Get a free trial of Wrike today to turn your startup business plan goals into actionable steps and accelerate your success. It’s easy to use and requires no IT skills.
Financials
The financial section of the business plan is a critical component. A strong and clearly written financial section can help you obtain a business loan or outside investment and grow your business.
This section should include income or profit-and-loss statements, a balance sheet that lists your company’s assets and debts, a cash flow statement that shows how money is coming into and going out of the company, and break-even analyses.
In addition, you should create a startup costs worksheet that lists all of the expenses that will be needed to open your doors for business. This will help potential investors determine whether or not your business is financially sound and will be able to make a return on their investment.