Do you want to know how to write a great startup business plan? If you are starting your own business then writing a startup business plan is a crucial step. It is important to know how to write a business plan, how to present it to the investors, etc.
They say as a startup, all you will need is a good plan. Startup business plans are very helpful because they force you to step back and analyze your business critically. Let us say you are seeking a loan, of course, you will need to show your plan to a bank. In other cases, you need to show the plan to any investor. Consider your target market, the products or services you will offer, and your projected finances. Even though writing a business plan is not that difficult, it will require considerable research and planning.
Let us discuss some easy plans on how to write your startup business plan.
Talk about your mission and objectives
You will have a heading named “Company Description” where you should describe your company in more detail. In this section, you can have some of the information provided in the executive summary. You can mention your mission, your driving goal every day. Simply writing “Make Money” is not ok in this case. Identify how you are going to make that money.
Provide detailed information about your goals in your startup business plan. Referring to the industry try to explain whether it is growing or poised for growth in the short and long term. Mention the factors that will drive your success. And yes do not forget to write about your legal form and explain why you selected this exact one (make it clear whether you are sole proprietorship, partnership, limited liability company (LLC), or corporation).
Talk about your industry
Create a heading “Industry Analysis” and talking about your industry at a high level is crucial. You can discuss whether the total industry is growing and how quickly, and also write about trends in consumer preferences.
In order to do some research simply go to the library and ask your librarian for help finding information about the industry. Also, you can search for industry information in other places, for example, talking to people in your industry at trade shows. And yes you can search online. For more details go to the websites of many industries where you will find some information. The aim of analyzing the industry is gaining insight as to your likely target market and how you can reach them.
Talk about your target market
Of course, it might be nice to think the entire world is your market, but businesses usually service a niche. So identify that niche. You can think about the following characteristics of your target market:
- The average age of your likely customer (You can visit similar businesses and note the ages of the clientele.)
- The gender of your likely customer (Will women, men or both primarily use your products or services?)
- Location (Normally your market will be located near your business.)
- Income level
- Education level (Not always but there is often a link between education, income, and occupation.)
Talk about your competitors
You should talk about those who you will be competing with. Just identify them. Mostly your competitors will be located nearby. But in case you have an Internet-based business, your competitors could be any business offering similar services or products. You can look in the phone book or do a general Google search to find competitors. Make sure to read their website. For example, if you are going to open a restaurant, you will want to see a sample menu, as well as the hours of operation.
A good idea is to identify indirect competitors as well. Let us say you are opening a spa center. Indirect competitors could be any business that offers relaxation, such as massage parlors or meditation centers.
Drafting a competitive analysis once you have studied your competition is very important. You should explain in your business plan how you will stack up. Create a chart, which should contain the following:
- the name of your competitor
- things that you offer and they do not
- things that they offer and you do not
Show what will make the consumer experience different at your business. Think not only about products and services but also location, ease of ordering, etc. And yes by identifying why you do not offer their products or services you are trying to show you are not serving multiple niches. It means while being focused on the one only you are managing it the best way you can.
Talk about your products and services
In this part, you can provide a detailed explanation about what products or services you will offer and how you will offer them. Let us say you are opening a pizza shop. So you will want to mention whether you will sell pizza by the slice, as whole pies, or both. Make clear the sizes of the pizzas, the list of the toppings that you can offer to your costumer. Talk about delivery options and why not, mention other food items that you are going to sell in your pizza shop.
Talk about your marketing plan
After you have identified your market, you should give some explanations how you will reach it. Discuss what type of advertising or promotion you are going to use and how often you will use paid promotion. Also, mention what other promotion other than paid advertising you are going to use. You might use social media, professional networks, etc.
Talk about creating a logo and using it on cards, letterhead, websites, etc. Do not forget to write how large your promotional budget is going to be. Considering all the above mentioned and including it in your startup business plan under the marketing section is a great idea.
Remember that before you go ahead and rent a location or buy business stationery, telephones, etc you should have a startup business plan. Note that it is very important, even at the early startup stage, and even if you can keep it in your head. Hopefully, our tips will help you when creating your own business plan. We wish you good luck.