How to Draft a Business Plan for Your IT Startup

Planning the operations of a tech startup is a great headache that some people would not wish on their worst enemy. Although that is true, at the end of the day, it has to be done to secure finance and simplify the operations of the businesses. 

To help you get through the tougher times, a business plan has to be drafted that will be shared with key senior management positions. The business plan can also be used to create a roadmap for each project or ongoing operations. Here are tips on drafting a great business model for an IT startup:

Establish a clear objective

One of the main guiding principles that should be clear on the business plan includes the objective, mission statement, and vision of the company. Tech companies might not think this step is important to them since they think their product is universal. For example, a software company might think that they can develop any solution regardless of the niche. This is a common misconception that has failed many good startups. 

Niche is important in all aspects of your tech business. Even if it is about link building for Google ranking, you should use the same principles used when doing a tech guest post. You choose good sites with high DA and contact them to accept your posts. To make it easier, you can take help from GetPixie.com, a leading name in providing technology guest post service.

Clearly state the target audience

On the business plan, document the targeted audience. Do not just do the bare minimum but instead go deeper and find out more about the targeted audience. You can even go to the extent of documenting each buyer persona you’re targeting. 

This should also be done to negative buyer personas, which stands for customers you do not prefer having. These negative buyer personas can help increase RoI when acquiring customers by reducing CAC. Doing this when planning the business is very important for future operations.

Drafting accurate financials

One of the things entrepreneurs try by all means to avoid is making financial statements. There is a wide variety of financial statements to draft when drafting a business plan. Since you are a startup, the financial statements will not be focused mostly on historic financial health. 

Instead, it should be future dated, projecting the value your business is aimed at adding. The only financials that should be current as a tech startup is the amount of funds needed to get the project operational. Afterward, provide realistic forecasts based on targets and KPI benchmarks to create accurate financials.

Conducting market research

Market research is one of the most important aspects of a business plan because it helps guide business operations. Without proper market research, you might end up making decisions that are not best for the business. 

Another thing that might happen will be trying to solve problems that can’t be monetized. To come up with a winning business model for whatever tech solution you’d like to develop, conduct thorough market research. Understand every aspect of the market you are hedging into and the piece of the economy you’ll get once you’ve started operating.

Basic structure of a tech startup business plan

A business plan should have a proper structure that is most relevant to its niche. When you are drafting a tech business plan, some elements are critical. To help you get a sense of what is expected from a tech business plan, here are the top items that investors or other stakeholders look out for:

  1. An awesome cover page
  2. Table of contents for easy reference
  3. Executive summary briefing up the business plan
  4. Business description
  5. Market research findings
  6. Competitive analysis
  7. Marketing plan
  8. Management and ownership structure
  9. Operational plan
  10. Financial plan
  11. Supporting documents

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