Tech start-ups are becoming more and more important. They span diverse sectors with their IT-oriented services and products – industry, trade and commerce, the service sector, research and teaching or administrative areas to name a few. It is wise to consider a few aspects in advance, especially with respect to the startup business plan. It is being claimed increasingly that the startup business plan is detached from the business model, because it robs dynamic entrepreneurs of their valuable time. The business model is a “lean” version of the business plan. But it always begins with a business idea:

– Presentation of client value
– Who will pay for the product or service
– Preparation of a (short) market analysis and a financing plan
– Big plus: a good startup Story

In this article we’ll give you some tips for writing the business plan for your startup, which can help you customize it in the correct format. You must write about the way you and your financial backers can make good money in the future. You must meet the correspondingly high expectations for your concept and therefore for your startup business plan right from the outset. Your introduction as the “startup founder” is as important as the presentation of the future enterprise. It is also important in terms of the investment business plan.

Self-marketing, product and service marketing must be in symbiosis, and you need to give the right answers in loan interviews. We’ll give you a head start on the so-called “one-to-one” founder tools in the Internet sector. These are known among decision makers (investors or other backers). Let’s now go ahead and plunge into the scheme, so that your startup business plan can lead you to success. 

 

Startup Business Plan Tip 1: Make Your Point

The startup business plan is your written document number one, in which you describe in detail the concept of the company that you want to found. It should be a living, vibrant concept that is constantly being expanded and maintained. Move by move, phase by phase.

Startup Business Plan Tip 2: The Recipients of Your Plan

The business plan generally has two recipients. First there’s the founder, who must carry out a systematic analysis of his business idea in advance. The other recipient is the potential investor or lender. Stakes in your startup will be requested. Therefore, the plan must include comprehensive information about the founder or founders, the business model and financial planning. You can highlight certain points depending on the investor, even if these involve funding, business plan competitions and accelerator access. Do not take half measures.

 

Startup Business Plan Tip 3: The Structure

  1. The Executive Summary with the personal data of the founder/s. This includes:
    – type of education
    – (lack of) practical experience
    – experience abroad, foreign language skills (if necessary)
    – is there any specialization (expert status?)
    – referencesAlso, don’t forget the so-called „Smart Tools“. These include:
    – communication skills
    – personal traits (perseverance, works well under pressure, keeps calm in stressful situations)
    – team player
    – decision-maker

You should be able to market yourself to potential investors. Your personal qualities are just as important as your professional ones.

  1. Introducing your product or service idea

This is essential to technological solutions: What are you offering? If you’ll be operating in manufacturing, you should focus on the production process. A convincing product is absolutely essential for a startup.

  1. Client description and marketing plans

Who will be using the development, product or service? Which marketing strategy should you opt for?

  1. Describe the competition

– Market positioning
– Market penetration (in years and volume)
– Price level

  1. Present purchasing and production plans
    – Methods of purchase/acquisition
    – Clarify production method
    – Present current costs
  2. Location and legal form
    – Explain your choice of location / s
    – What legal form will you choose (detailed explanation)
  3. Financial planning
    – Do you have your own capital as assets or cash?
    – Capital requirement
    – Expected capital
  4. Attachment
    Attach relevant statistics, assessments, test reports and feedback to your business plan where necessary.

Startup Business Plan Tip 4: The Financial Plan

The financial plan is the essence of all plans. It closes the main part of the business plan.
It should include:

– Estimate of costs and revenue
– periodical calculation of ensuing profit

This part of the plan must be as clear and concise as possible because it aims to convince investors of the founder’s adequate knowledge of product prices, quantities and other costs.

They will then decide whether the company could be feasible in the long term (revenue exceeds expenses).

The capital requirement plan and liquidity plan are as important as the profit plan.

The capital requirement plan includes:
– Production materials necessary
– The necessary investment
– The required capital reserve

Liquidity planning is derived from the partial planning. This plan is necessary because the income might not always cover the disbursement.

 

Startup Business Plan Tip 5: Risk Analysis

This section describes the greatest risks which can be expected under certain circumstances. Furthermore, we consider some particularly sensitive interpretations of financial calculations that can and do lead to unexpected results. You should also think of some scenarios, in which exit opportunities are indicated.

 

Startup Business Plan Tip 6: Formal Organization

The business plan needs to appeal to the imagination of investors and convince them of the idea and its implementation.
They must realize that the founder knows his/her business, the risks and opportunities.
The plan must exude competence and determination. These must be evident and comprehensible.
Write as much as necessary but as short as possible. The maximum is usually 25 to 30 pages plus 10 to 15 pages of annexes.
We wish you great success in creating your business plan with these steps.

 

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