7 Tips on Writing A Good Startup Business Plan

Today, there are many new and interesting ways to run a business. Even more so now, when stories about successful startups are all over the news and the digital industry is growing quickly. Everyone tries to come up with the latest idea and says it will solve all of our problems. These ideas are important for anyone who wants to start a business and be a founder.

Few new businesses are successful, which is a shame. Most of these ideas never went anywhere and didn’t happen. The thing is, having interesting ideas isn’t enough. A person who starts a new business also needs to be able to make a good business plan that is realistic.

So, let’s find out what a good business plan looks like and how to write one!

Also read: 7 Ways To Start A Successful Startup Company

What Is A Business Plan?

How to write a business plan (source: Freepik)

Before starting a business, planning is one of the most important things to do. If we have a good plan and analysis, it’s easy to decide what steps to take. This stage of planning can be summed up in a business plan.

As the name suggests, a business plan is a detailed outline of the business you want to start. This plan needs to include everything about the business, from the basics to how it is set up.

To get a better idea of how to write a business plan, please read the tips below.

Also read: What is Forecasting Methods and Their Benefits for Business

How to Write A Startup Business Plan

There are many different ways to make a plan for a new business. You can use the lean canvas method or write a proposal that is complete and well-organized. Here are the steps you need to take, no matter which method you choose.

1. Start with The Fundamentals

Always build a strong base for your business plan. Think about the basics first, so that writing will go more smoothly.

The Business Type and Form

First, you need to decide what kind of business you want to start based on your first idea. Then you can decide what kind of business is best for your idea. For example, if you choose culinary as your business type, you can decide if it will be a restaurant, a street stall, or something else you think is best.

Also read: The Types of Business That You Should Know

Business Location

In addition to the type and shape of the business, the location of the business is also very important. Your target market condition is directly affected by where you choose to be. This includes the strategy for going after the market.

The Required Business Permit and Licenses

Getting a business permit and license is one of the most important things you need to do to start a business. You need to make sure that your administrative requirements are correct and that they match how your business works. This is important if you want to make sure that the law protects your business. You don’t want to end up in court in the future because you don’t have the right paperwork, right?

2. Meticulous Product Design

The main thing a startup does is sell a product that solves a problem in society. So, you need to give as much information as possible about your product in the business plan. Here are some things you should say more about when you write about your product.

The Solution It Offers and The Right Type of Product

When designing a startup product, you should always start with a problem. Take, for example, Gojek, which attempted to solve Indonesia’s transportation issues. or Tokopedia and their product that claims to solve problems with online trade. When you know what problem you want to solve and what solution you offer, choosing the type of product should be easy. This could be a website, an application, software, or even hardware.

Product Description and Price

In your business plan, give as much information as you can about your product. Write a comprehensive product description. Explain each part of your product and how it helps people. Add a price point to your explanation to finish it off. Make sure you set the right price based on how the market is doing at the time. Note the prices of similar products on the market as well.

Also read: What Is a Business Proposal, The Definition, and Benefits

3. Make a Marketing Plan

The market is one of the main things that determines whether a new business will do well or not. No matter how good your idea or product is, it won’t be as successful as you want if you don’t plan your marketing well. When writing the marketing plan, you need to think about these things.

Decide on the target market and segmentation

Before you write the marketing plan, you need to know which market you are targeting. Discover how and what your target market enjoys doing so that you can market to them effectively. Give a clear, detailed picture of the market’s people, features, and size. In the future, this would make it easier to market.

Competitor Analysis

Not only is it important to know your target market, but it’s also important to know who else is in the field. Competitors are a good way to measure how well your business is doing. To be able to compete in the market, you need to know your competitors’ strengths and weaknesses as well as the market they’re trying to reach. With a thorough analysis of your competitors, you can figure out what you need to do to get a bigger share of the market.

The Marketing Channel Used for The Initial Stage

The marketing channel for a startup would always change as the startup grew. But in the beginning, it’s important to figure out what kind of marketing channels you can use. When you know which channels you want to use, you can make a better marketing plan.

Also read: Lean Startup Method: Purpose, and The Basic Principles

4. Include your Financial Report and Profit Projection

How to write a business plan (source: Freepik)

The ultimate goal of any business is to make money. So, a good business plan would show how the business’s finances were at the start and how much money it expected to make.

The Initial Cost

For the start-up costs of a business, you need a certain amount of money. This usually includes costs for administration, the office, research and development, and the first round of advertising.

Monthly Expenses

On top of the cost to start the business, there are also monthly costs to keep it going. Usually, these costs include the cost of employees, the cost of running the office, and the monthly cost of marketing. Understanding these costs is important if you want to keep an eye on the company’s spending and make sure the business will last.

Profit Projection

This one can’t be missed. As a business that wants to make money, you need to know where all of your money comes from. This projection of profits can show how well your business could do. However, you need to make sure that the projections are realistic and possible.

Break Even Point Analysis

As a new business, it’s important to know when your business will reach “break-even.” With this analysis, the sales goals and price of the product will be set.

5. Explain the Company’s Operational Plan

Now that you know the basics of the business, it’s time to turn them into steps for how to run it. You can do this by making a plan for how the business will run.

Daily Operational Plan

A good business idea isn’t worth anything if it isn’t carefully and well planned out. So, it’s important to come up with a standard operating procedure for daily tasks. This includes everything that goes on every day, from the work hours to the tasks that have to be done.

The Right Supporting Tools

A business can only run if it has the right tools to back it up. So, you need to list all of the tools you’ll need for the business to work the way you want it to.

6. Write Down the Company’s Structure

Without a clear organizational structure, a business would never be able to run well. Even though some startups don’t like structures and would rather get rid of them, you still need some kind of structure in your organization. The duties for each position are set by this structure.

Also read: Important Positions in Startup Organizational Structure

7. Summarize Everything in The Executive Summary

It’s good to have a detailed plan, but it won’t help you make a good pitch. So, you need to make an executive summary that sums up everything. Make sure that in one or two pages, you explain everything about your business plan.

You should make your executive summary as interesting as you can so that the person reading it will want to read the whole business plan.

Making a business plan is an important first step if you want to start a business. The startup’s future success would depend on how well it planned. So, put a lot of time and effort into making your business plan. Make sure to include all of the important things listed above and change them to fit your business.