How to Develop a Business Plan for Your New Tech Business
Whether you are launching new software, an app for a mobile / desktop / portable device, or any other type of technology like an online video editor, you need a business plan.
A business plan is a document that describes your company’s goals and how it plans to achieve them. A business plan should focus on many key points, including the purpose of the business, the markets it will serve, and its strategy for attracting customers and growing. It is important to note that if you are looking for financing, most likely from angel investors or venture capitalists, you will need to explain the amount of financing you need, the uses of the funds, and give them the assurance that you will. will earn a positive return on their investment.
1. Executive Summary: Your executive summary should be no longer than 1-3 pages and should provide an overview of your business, including what you do, how you do it and what sets you apart.
2. Company Overview: In this section, you include a description of your company, your mission statement, your goals and objectives, and your accomplishments to date.
3. Industry Analysis: Here you will provide an overview of the market landscape. You will detail the size of your industry and the trends that affect it.
4. Customer Analysis: This section should describe the customers you will target. Identify your main customer segments and their demographic and psychographic characteristics.
5. Competitive analysis; you will detail here your strengths and weaknesses compared to your competitors. For each competitor, document what they do well, and most importantly, define how you will create long-term competitive advantage.
6. Marketing Plan: A solid marketing plan contains the four Ps: product, location, price and promotion. The first P, Product should describe the products and / or services you offer. The second P, Location, is where you sell your offerings, for example, through a store, online, or through partners. The next P is the price which describes whether your price is low, medium, or premium. Finally, the fourth P, Promotion, defines how you will attract new customers through methods such as TV advertising, social media marketing, and public relations.
7. Operating Plan: This section deals with your day-to-day internal operations such as product delivery, human, financial, legal, and IT resources. It also presents your future growth milestones.
8. Leadership Team: Here you will document the key members of your leadership team and detail how their backgrounds make them qualified to help grow your business.
9. Financial Plan: Your financial plan includes 5-year projections showing your income statement, balance sheet, and cash flow statement. Here you will document your financing needs and show that you will achieve a respectable return on investment for lenders and investors.
10. Annex: Finally, your annex will include supporting documents such as client lists, intellectual property protection, leases, etc., to give readers more credibility that your business will be successful.
Creating a business plan will help you determine the best possible roadmap for growing your business. This is an important step for any new business to take that can dramatically improve your chances of success.
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