How to attract investment; business plan for a startup
Shopify marketer Tommy Walker recently conducted a survey on startups and came up with stunning findings.
More than half of entrepreneurs do not think at all about how they are going to attract customers before launching.
Up to 60% of those surveyed have never done online sales before.
Only a third of the respondents have a preliminary marketing plan, which includes participation in exhibitions and forums; search for bloggers for cooperation; ordering articles in print media.
At the same time, those startups that, when launched, have a competent marketing plan worked out to the smallest detail, initially have a strong competitive advantage.
Where to start
Tommy Walker came to the conclusion: if a startup gets at least 100 clients in the first month, then the next three years the project will actively grow and develop. If there were no more than 30 clients per month, then development will be slow, if not dead at all.
What do we know about marketing strategies that attract and retain potential buyers? How many startups are honest with themselves at heart and understand what their goals are - to earn as much as possible or become a powerful player in the market?
Hopes alone won't get you far. Before starting a startup, there are three important points to be clearly defined:
- Budget. How much are you going to invest? All expense items are taken into account: from advertising to employees.
- Resources. What are the benefits of your team? This can include everything from sales skills to working in design programs
- Disadvantages or limitations. Will there be enough money, time, people, ideas? Think about anything that might stall the deal.
The structure of the marketing plan is approximately the same for all businesses.
Section: Goals and objectives for the coming year
If you decide to start a startup and don't know if you need a business plan, remember one thing: having a written business model allows you to request investments, ensuring the successful development of the business. Today we will tell you how to correctly draw up this document, what it should contain and why it is generally important.
But before moving on to the structure of the document, we advise you to adhere to the following rules:
- First of all, do not use other people's business plans downloaded from the web. It is unlikely that investors will begin to check the provided materials for uniqueness, but a deliberate, independently developed strategy will bring much more benefit. Use templates, take them into service, but do not get carried away with stupid copying.
- Secondly, giving vent to ambition, take a sober view of your own capabilities. The desire to get a millionth profit in a month is commendable, but the investor needs a really working model of enterprise development. It is important to adequately assess your prospects, directing the idea on the right path.
Below we have prepared a template that can serve as a guideline for writing a commercial strategy.
Strategic Planning Standard
This is the introductory part of your business plan, so don't try to make it too big. General data is required such as:
- type of legal entity;
- organizational form;
- date of company registration;
- postal address, place of registration owner;
- names of managers, persons who registered the case;
- estimated deadline;
- full cost of implementation.
This also includes a trade secret statement. All of the above are the so-called "protocol" data that must be filled in. Yes, they are most likely to interest the investor less than practical reasoning or analytical information, but without them, it is unlikely that it will be possible to get funds for the development of your entrepreneurial idea.
Here it is necessary to describe the direction of the company's activities, substantiate the effectiveness of the future undertaking, and then predict the real possibilities. Remember - the more convincing your text is, the more chances you will get an investment.
- describe the essence of the project, the way of its implementation;
- forecast future results;
- indicate the full cost of the business;
- indicate the planned payback period;
- provide a financial justification for the implementation (the economic terms "net present value", "tax revenues to the state budget" will appear here);
- indicate in what form are going to attract investment;
- be sure to justify the return of investment data;
- describe the social, environmental and other benefits of the implementation.
Industry Research, Enterprise Description
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Starting your own business is not an easy task. One of the hardest and longest first steps is writing a business plan to announce your intentions. A business plan includes a detailed explanation of the nature of your business, your goals and the risks associated with this business.
Writing a business plan for a young business is a process that needs a lot of attention, focus on it. Only then will he be crowned with success. The instructions for writing a business plan are as follows:
Research the challenges in your area of business
Create a list of the pros and cons of competition. Remember that a business plan is not only useful for marketing purposes, it must be clear and understandable so that you, as the owner, can use it to follow your course.
As an example, you can take the business plan of a startup such as "Internet cafe". By examining the competition, for example, you will find out that you like the dim setting, quirky tables, and the bakery section. Also, let's say you don't like opening and closing early, a situation with a lack of parking spaces and problems with the availability of wired and wireless Internet.
List everything you need for your startup
If you continue to explain using the example of an Internet cafe, you will need a room, ovens, coffee machines, bar counters, display cases, furniture, lighting, heating and air conditioning, toilets, and more. Supplement your information with data about similar companies.
Maintain a list of all the expenses your business will have. General and day-to-day expenses include employee salaries, insurance, utilities, room costs, house maintenance, water, sewage, garbage collection and taxes. Again, don't forget to research the competition and additional costs specific to your area of business. For example, for Internet cafes, additional costs will be paying for the Internet, the supply of pastries, disposable coffee cups, spices, newspapers, magazines. Each business is unique and may include specific costs.
Explore examples of existing business plans
Borrow ideas from various sections of the business plan, use them as a base from which you can outline the contours of your future startup.
How to attract investment - a business plan for a startup.
Hello, Igor Zuevich is in touch. Anyone can think of a great idea, but turning an idea into a viable business is another matter entirely. Let's look at how to attract investment today.
It may seem to you that everything is ready to launch a startup, but before seeking legal advice, renting an office, registering a limited liability company, it is better to describe your idea on paper. This will help structure everything properly and focus on the main thing.
You will share your business plan with others and get their valuable opinion. You shouldn't start a business without first finding out what other people think of it.
Typically, a business plan consists of the following elements:
- Project Summary
- Company Description
- Market Research
- Product / Service Description
- Management and operational structure
- Marketing and sales strategy
First, it helps you understand your business better. Having laid out everything on paper, you will get a more complete picture of the project, you can, so to speak, look at things from a bird's eye view.
If you have a formal plan, the probability of success increases by 16%, moreover, thanks to the plan, you are more likely to raise capital for a startup. No bank or investor will give you a single ruble without a detailed business plan.
If you have an idea for a startup, but do not know where to start a business plan and how to attract investment with it.
You will learn how to describe the various elements of a business plan and receive some helpful advice. Here's what you need to get started.
Everyone who has an entrepreneurial streak, regardless of their status, occupation, skin color or gender, wants to create an exceptional, unique and necessary project. But building a profitable multi-million dollar business is a difficult and painstaking business. Even those companies that have achieved colossal success have gone through a hundred circles of hell to get results. However, to give up and say in advance that nothing will work out is also not an option. How do you create a startup that brings positive results? What's the secret to building a successful startup? We will consider all these questions further.
For any undertaking, no matter whether it is a startup or opening another inconspicuous store, you need harmony of thoughts and orderliness of actions. You have to be passionate, dedicated and willing to work for a long time, because usually the authors of projects simply give up their idea too early. Therefore, it is necessary to set realistic goals for growth and development.
How to create a startup: milestones
Here are the basic steps for creating a startup correctly:
- idea development
- market research
- quick response to market needs
- team building
- running a startup business organization
- implementing a startup
We also advise you to read more about startups in our article What is a startup in simple words.
Developing an idea and implementing a startup from scratch is a time-consuming task. There are many things to consider to make a startup effective. The main thing is to show your vision of the startup by echoing the problems of people. At the same time, you need to determine your motivation, interests and purpose in life. The main criteria for a successful idea are: longevity (value in time or long-term value), reliability (the ability to protect it) and sustainability (the ability to implement the idea within a certain period of time). If you don't have a clear plan yet, here are a few ways to help you find a great startup idea:
- create what you or your loved ones lack
- turn your hobby into work
- look for market zones that you haven't noticed yet other companies
Unusual thinking is essential for getting your first investment and starting a business, don't be afraid to go beyond conventional business schemes!
Understanding your market is the key to success. If you do not know the specifics of the chosen business area, your efforts will be in vain. Stay in the zone you know. Don't run anything you don't know. Remember consumers and feel what they are doing, sort out their needs.
How to create a startup quickly responding to market needs