Business plans are a vital document for any business. It helps understand the structure of the business, its goals, and how it will generate revenue.
This article will provide you with insights on how to write a business plan for technology that is accurate and convincing.
When it comes to writing a business plan, the process varies from industry to industry and company to company. However, technology is an industry that is typically very complex due to market dynamics and technological advancements. So often requires a unique approach.
A business plan can be used to attract investors or lenders, or to convince your current stakeholders that you have a viable business with a bright future. A good business plan will help you organize your thoughts and ensure that you strategies for key aspects of your business.
A business plan is a written document that outlines the entrepreneur’s goals, objectives and strategies to achieve them and provides detailed direction for key areas of its products and services, its management team and its finances.
It also serves as a benchmark for measuring progress over time by identifying changes in market conditions that may have occurred since the last iteration of the plan was finalized.
The following outlines how to develop important areas in a business plan for Technology Start- ups.
Product/Service Description
Source: b12.io
Product/Service Description is a description of a product or service. It should include the following:
- Problem: The problem that the product/service is solving
- Solution: How the product/service solves this problem
- Features: What features are included in the solution
- Benefits: The benefits that come from using the solution
- Company History: A brief history of the company behind this product/service. This can be a quick summary of how it all started and how it has grown over time.
Market Analysis
Determine market size and your solutions fit.
A market analysis is an important tool that can provide a business with a detailed overview of the market. This can help a company to determine what the competitors are doing and what their weaknesses are. It also allows them to find out about the size of the market and how they can penetrate it in order to maximize their profits.
A competitor analysis is one of the most important parts of any marketing plan because it allows businesses to see where they stand in comparison to their competitors. It helps them to understand what strategies work for other companies and which ones don’t. It also allows them to see how they can improve on their own products and services in order to become more competitive within the industry.
Objectives
Source: octapull.com
The objectives of a business are the end result that it wants to achieve. These objectives are usually measurable and quantifiable, which means they can be tracked and recorded to see if they were achieved.
The objectives of a business depend on the type of business that it is. For example, a technology company might have an objective to test a minimum viable product in year one, generate revenue in year two, and we cashflow positive in year three.
Strategy
Strategies are developed once market analysis and objective are completed. Strategies serve to guide companies so they can focus on long-term goals, overcome challenges and deliver on objectives. Strategies can cover many areas such as: positioning, distribution, sales, and marketing mix.
Here is an example of strategy contemplations as it relates to market penetration: The technology market evolves at a fast pace with new competitors entering the market. The increase in competition has led to the need for companies to have a more sophisticated and well-thought-out strategy. A market penetration strategy is a marketing technique that helps companies grow their sales by penetrating existing markets and gaining new customers. Market penetration strategies are broadly classified as either horizontal or vertical. Horizontal strategies are aimed at broadening the customer base without taking into account the type of products sold, while vertical strategies target specific customers with products that they want. or need. The market penetration strategy is a marketing technique that helps companies grow sales by penetrating existing markets and gaining new customers.
Management Team
Source: leadershipahoy.com
The management team is the most important and valuable asset of any company. The team members are the decision makers and visionaries, who take care of every aspect of the business. A good management team is capable of taking a company to great heights.
A good management team consists of people with different skillsets, who complement each other in order to make decisions that are beneficial for the company. A strong management team can be an invaluable asset for any business.
Your business plan should make sure the management team encapsulates these key points to ensure there are no gaps.
Financial Forecast and Schedule of Events
Financial statements are an important part of a company’s success. They provide insight into the company’s financial health, and they are often used to determine a company’s creditworthiness. There are three financial statements that can be generated: balance sheet, income statement, and cash flow statement.
A balance sheet is a snapshot of the company’s assets, liabilities and equity at a particular point in time. The balance sheet is usually prepared at the end of every month or quarter. It tells you whether the company has more assets than liabilities (in which case it is said to be solvent). An income statement measures the amount of money a company brought in on its sales and expenses during a particular time period. The income statement is usually prepared quarterly or annually. It tells you how much money came into and went out of the company during that particular year. The cash flow statement tells you the amount of money that came into, went out, and stayed in the company during a particular time period. The cash flow statement is also prepared quarterly or annually.
A business plan can take many forms, and have different target audiences. If your tech start-up takes the time to be thoughtful and diligent about including the six sections detailed above, your company will be building off very strong foundations that have led other tech start-ups to success.
Steve Williams CExP™, CMMA is a Partner at Incentica Business Plans in Calgary. He is a certified exit planner and mergers & acquisitions advisor with 30 years of senior management and executive experience. Steve has written over 130 business plans, and succession/exit plans for some of the biggest best companies. Steve is a Business School grad and Harvard educated.
