You have an idea to start a business. You must have knowledge about how to write a start-up business plan. At the time of writing a business plan, you have to put emphasis on the parts of a business plan. The components of a business plan direct you to reach your destination. plan A start-up plan is a detailed outline of starting a new business. It is the route map for an entrepreneur. The startup plans the core things of introducing a new business. A good startup plan should answer the following questions: What it wants to do? How it will be done? How it will collect funds? How it will be promoted? How it will be operated or managed? Who will manage it? How it will be positioned?
Guidelines for writing a startup business plan:
Writing a startup plan is not an easy task. To write a good start-up-plan someone should consider these following factors:
- The products or services should clearly be defined for the startup plan.
- A target market needs to be identified before writing a business plan.
- The customer needs and wants should clearly define for product specification.
- It should clearly assess the market situation to avoid barriers.
- The source of funding should be determined before startup.
Importance of Startup plan:
The failure and success of a business mostly depend on its startup plan. In order to know about your business idea, a startup plan may be read by different groups of people. The groups of people are employees, investors, bankers, venture capitalists, suppliers, customers, advisors, and consultants. For purposes of these groups are the different entrepreneur should make sure to address all the issues concerning their interest. But in practice, the entrepreneur tries to meet the needs of the groups expected to be involved with the activities of the business. If the startup plan is good and well organized than it will make sure the success of business in the future.
Steps of writing a Startup Business Plan/ Model Startup Plan/:
Executive Summary is the precise overviews of the detailed business plan, that create interest among its reader (employees, investors, bankers, venture capitalists, suppliers, customers, advisors, and consultants) to read the whole startup plan and capable enough to convince them to work in favor of its implication. It is one of the most important components of a business plan. Executive Summary of a model startup plan consists of the fundamental essence of the business, target customer and their demand, market gap, market situation. It also provides a brief description of it Venture, Market Situation, Marketing Plan, Operational Plan, Management Plan, Financial Plan. In this section, it is important to disclose about the funding process and the partnership pattern of the business. In this part of the startup company plan, it should be mentioned about its prospect.
Introduction to Venture
This section of a startup business plan makes clear about its Name, Location, Product and Service, Key opportunities for this startup with a brief description of their partners and the partnership ratio among them.
Market and Industry Analysis
Market and industry analysis is a very important part of a new startup plan because all the plans i.e. Marketing Plan, Operation Plan, Management Plan, Financial Plan is to be designed through the results and understandings of the market research. It is a major part of a business plan while writing marketing plan section. In order to know the current status of the market i.e. the relationship between the product and its market situational analysis is undertaken. The entrepreneur or the analyst may discuss the issues informally with customers, wholesaler, retailers, competitors, and others interested in the business to get relevant information in these regards.
Besides, an attempt may be made by the entrepreneur to get information about the experience of the existing companies, preferences and purchasing power of the customers, strategies of the competitors and practices of middlemen from different sources. To make such study effective, objectives of the study should be clearly identified and spelled out. A goal-oriented structured questionnaire is helpful to collect appropriate data for situational analysis. Analysis of data and information collected will give an overall market situation of the product. The entrepreneur should determine business objectives, conducting a market survey/ market research, identifying the characteristics of the market and forecasting demand.
A marketing plan is a part of the business plan. It is a detailed outline of marketing activities that are designed to achieve the organizational marketing goals. Marketing plan consists of product and service description, target customers, market demand, market gap, market growth and potential, competitor analysis, segmentation strategy, targeting strategy, positioning strategy, product strategy, price strategy, promotional measures and strategy, distribution strategy, sales forecast, promotional budgets and estimated market coverage plan with some aggressive marketing tools relating to 4P (Product, Price, Place, Promotion). Success and failure of a marketing plan depend on a customized integration of these given tools and their appropriate implementations.
Production Plan/Operational Plan
The operational activities of manufacturing, trading, and servicing business are different. So, their operational plan will be different. For example, the operational plan of manufacturing may cover aspects such as Manufacturing process, Physical Plant, Machinery and equipment and the Names of suppliers of raw materials.
This section of the business plan will describe the legal form of the organization and its management style and staffing plan. It is also important to include an Organization Chart, authority, and responsibilities of the members of the organization. The names of the core management team, their qualifications and experience should also be included. Obviously, this information will help the potential investors have a clear understanding of who is in the management and what is their competencies to run this organization successfully.
The most important part of a business plan is the financial plan which indicates the potential investment commitment and viability of the in financial and economic terms. In this section of a startup growth plan, an entrepreneur will summaries the forecasted sales and appropriate expenses for three to five years. It includes the forecasted sales, cost of goods sold, general and administrative expenses. It also shows an estimated cash flow statement for three to five years. A good startup business plan should include the projected/proforma/estimated financial statements prepared based on different assumptions.
The business plan should include an appendix containing backup materials such as letters from customers, contractors, subcontractors, market survey results, CV of the investors, licensing documents and any other necessary documents.
Example of a Sample Startup Business Plan:
The example of a business plan gives you an idea about how to write a business plan. In an example of a business plan, each part of a business plan should follow to get an idea of how to write a startup plan. A Sample Startup Business Plan depends on the real market situations. Market analysis is a component of the business plan. The above-given discussion in this section may capable enough you write down a good quality startup growth business plan.
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