Business Plan for a Tech Startup

One of the common challenges of a startup is to lose focus on the business goal. A business plan helps to keep you on track. When you document a business plan, it means you already know what to do and how to do it. It does not save time only but also reduces investment risk. For a precise and organized goal, a business plan is compulsory. 

In this article, we will cover the essential points to write a business plan for a tech startup.

How to Prepare a Business Plan for a Tech Startup

Executive Summary

An executive summary is the short form of your entire business plan. Writing an executive summary is essential for both your team and investors to understand your business goal. The summary of your tech startup plan should be short and precise that covers all vital points. 

Target Market

Before starting any business, your in-depth knowledge about potential customers is highly required. You can apply the four Ps of marketing to evaluate a market. Besides, consider the market geographics and demographics. Thus, you can understand what to expect. Note that if you find a market, you should find an opportunity as well. In this plan, you need to include the ways of overcoming market identification challenges.

Competitor Analysis

If there is a market, there will be competition for sure. Competition in the market is not always destructive. It is a sign that the business is profitable as well. So, identify your competitors and find out how your startup is unique from them. You may need to perform a SWOT analysis in such a case. If your plan is already practiced in the market, this may not work effectively. Add some unique strategy that your competitors are missing, but truly add value to customers. 

Services to Include

List the services you are going to provide. It is crucial to believe that service is always not about quality. You have to solve people’s problems. An interesting tech startup like Uber and Airbnb did the same and experienced success. Do not note features of your tech services; rather include how your service can benefit others. 

Team Management

Building a workable team is crucial for any successful startup because you cannot run it alone. Your business plan should include the process of managing the team. Write down the team members’ names and distribute duties among them. The success of a startup mostly depends on the plan of utilizing the productivity of each member of the team.

Marketing Plan

How would you promote your tech startup? Include the approaches of marketing, budget, and the KPIs in your business plan. If you plan for several experiments, you should include the A/B testing methods too. 

Business Monetization

You might be familiar with several sources of revenue. Among all of them, separate the best one which is applicable to your tech startup. In general, a business can be monetized in multiple ways. Write down if you follow the mix or the single approach. 

You may notice some huge templates for writing your business plan. But, all points may not be applicable for your tech startup. Instead, keep it short and precise.