We draw up a business plan for a startup step by step
Research in the field of attracting venture capital investments in startups shows that successful entrepreneurs are those who, at the preliminary stage, consider a business plan not as a formality, even taking into account the fact that, coming up with a new high-tech product or Internet service, it can practically there is no marketing information at all, the cost structure is only partially determined, and the team consists of two people. The document should determine the vector of development of a startup project and, ideally, be its roadmap, as well as present the project in an attractive way in a language understandable for investors.
Key sections of a startup business plan
The main difficulty in writing a business plan for a startup is lack of information and a high degree of uncertainty, especially if you are at the stage of lack of a prototype (pre-seed, seed). In this case, if external recipients of the document (investors, creditors, funds, etc.) see financial flows scheduled for 10 years ahead, a detailed organizational structure with positions prescribed up to the fourth level and a production plan with capacity utilization in all details, this will cause both a minimum of bewilderment, but in fact your document will be immediately labeled "numbers from the ceiling."
The level of detail required in a business plan depends on the stage of the startup you are in, so the first thing you should do is determine where you are. Moving forward, up to 90% of the information will appear and be refined, so the main mistake will be to write a 200-page Talmud with fantastic numbers. Nobody will read this.
Business plan for an online store startup For aspiring businessmen striving to succeed in an as yet untested industry, it is very important to have a high-quality, detailed and structured action plan at hand. The document not only gives an understanding of the volume of upcoming expenses, but also helps to plan all stages of starting a business: from the choice of premises and equipment to the algorithm for order execution, advertising and return on investment.
Preseeding startup stages
At this stage (from idea to concept), the most attention should be paid to the following blocks: market analysis and marketing research, project idea (basic concept), product / service description, approach to team building (organizational plan). The interconnectedness and integrity of the specified information, as well as approaches to the search for a business model are necessary and sufficient information that will answer the main questions of the stage:
- need for a product / service;
- target market;
- technologies used;
It makes no sense to describe in detail other sections of the startup's business plan, as well as to draw graphs tending to the ceiling.
A startup, in fact, represents the beginning of the development of a new company, which at the time of launch may not even be an officially registered legal entity. Such firms start from scratch. Also, the term is applied to companies that are only at the stage of their creation.
In order to find investors, it is important to conduct a detailed research of the chosen niche. You need to understand how deep it is, how big the market is and what financial prospects exist. It is necessary to determine the size of the target audience and to what extent potential competing companies are able to meet the needs of the consumer. An important factor will be to determine the prospects and existing trends in a specific segment of the economy, where the company is going to carry out its activities.
It is important to track a growing trend and avoid choosing a niche with a dying trend.
Having studied all these aspects, it will be easier for startups to explain to potential investors the prospects of their project. In addition, it will help determine the level of risk and the amount of investment required. Even a franchise of some well-known brand can act as a business idea, but submitted under a changed format.
Based on market analytics, you can draw up a more coherent and thoughtful business plan and development strategy. It will also allow you to describe in detail the scheme of work and methods of making a profit.
Writing a product description
Experienced entrepreneurs and startups believe that a truly successful and interesting product cannot be based on copying someone else's ideas, facts, or stolen business concepts. It must be remembered that quality is above all, and quantity is just an additional factor that has little effect on the bottom line of the business.
You need to understand that if a person does not understand a business plan, then he will not be able to interest him in any way and you will lose financial resources in the form of investments.
Regardless of professional skills, a business plan should be understandable to every investor, this is the only way to attract money to your side.
It's hard to argue with the fact that starting your own business has become much easier thanks to the Internet. And platforms such as LPgenerator allow anyone with a sensible product and a big dream to create their own landing page.
If you, too, are going to take the path of an entrepreneur or are already selling something, but want to go to a more serious level, you need a well-thought-out business plan.
Detailed business planning can be a lot of work, but for several reasons this step is critical:
- A plan helps you chart a business path from the start.
- You get a clear idea of the viability of your idea.
- Find out what resources you need to be successful.
- You better understand what you know and what you don't
Content of the article
Start: One Page Business Plan
To get started, you can start with the canvas of your business model. It is a strategic tool developed by Swiss business theorist Alexander Osterwalder as a one-page business plan:
Let's consider the structure of this model in more detail:
- Key partners: who is needed to make your business successful?
- Key processes: what needs to be done or what is achieved?
- Key resources: what can you use to benefit your business?
- Value Proposition: What is your Unique Selling Proposition?
- Customer Relations: What is important in your customer relationship?
- Promotion channels: how will people find out about your business?
- Target consumer groups: how do you classify your customers?
- Cost structure: where will the money be spent?
- Income streams: where does the money come from?
Here's an example of what a completed business model canvas might look like:
Startup is a word that every entrepreneur has heard. This term has become popular not so long ago. What a startup is, what startups are there and how to draw up a business plan to implement your idea - in our article.
What is a startup?
Usually this term is used synonymously with the word "business", but this is an incorrect use. This word has a specific meaning, and it is not suitable for every business idea.
This word was first used in the business environment in 1939. The author of the term is David Packard. Together with William Hewletter, he created a large technology company that is today known as Hewlett-Packard, or simply HP. Entrepreneurs called their company a startup.
However, until the 2021s, the term was hardly used. Only at the beginning of the new millennium did it become popular. This word began to call young and promising companies that create something new and promote their idea to the market.
From English "startup" literally translates as "start", "start of the process". In a broader sense, a startup is a young company, sometimes not even legalized, that offers a fundamentally new business idea or previously unknown technology.
The meaning of this word was most fully characterized by American entrepreneur Stephen Blank, who is called the godfather of Silicon Valley:
"A startup is a temporary structure created to implement and develop a scalable business idea."
For example, a startup at one time was Facebook, created by Mark Zuckerberg. The same projects were Google, Uber and other companies, without which it is difficult to imagine your life today.
The essence of a startup is to create something new. Despite the fact that most of these projects are associated with the Internet, startup can be implemented in any other direction - medicine, logistics, trade, banking, services.
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.
How to attract investment - Make sure the company has a clear goal
Avoid ambiguity in project descriptions.
“We're going to sell something” is not an option. It is much better to tell who you are, when you are going to start your business, what goods / services you will sell. Check if you plan to sell in an online or offline store, or both. Do you have a local, regional or international company?