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[Startup Business Plan] How To Write A Business Plan For Your Startup

financial projection for startup

Most important business plan you need to know for startup including a financial projection for startup. A business plan makes it easier for a startup to raise capital.

Executing an idea right is more important than the idea itself.

Ask any successful business person. They will tell you the same.

Having a plan increases the success rate of the financial projection for startup. In the business world, the plan is referred to as a Business Plan.

What Is A Business Plan?

A business plan is a document that describes in detail the approach you are going to have to make your business successful. It puts forward a written roadmap for the company from various viewpoints like marketing, financial projection for startup, and operational.

In general, a business plan tells:

Why Financial Projection For Startup Is Important

A typical business plan consists of the following elements:

Business Plan Vs. Pitch Deck

How To Write A Business Plan For Your Startup

Following are the important points you must incorporate in your business plan:

Business Plan For Startups

1. Start With A Clear Objective In Mind

Before starting to write your company’s description, have a clear idea of what you are going to do.

Start with writing about your company, its plans on approaching the market, sector your company will cater to, how your products and services are the best fit for the industry.

Just be precise and reasonable in your approach.

Be clear about the operations of your company.

Whether you’ll operate online or have a physical store, or will follow the phygital (physical+ digital) approach, be precise.

Tell them why you are starting the business and your vision for your startup. Write precise and try to incorporate the above-said points in no more than three or four paragraphs.

2. Decide Your Target Market

Business becomes easy to do if you know your target market and customer. You may think the opposite, but your business isn’t for everyone. 

So, from the very start, make sure you know very small detail about your target customer.

For Example: If you are about to sell a product ‘X’, you should know what kind of people will buy it, their location, income level, age, gender, etc.  Click here to know ways on how to decide your target customer.

3. Competitor Analysis And Whats Sets You Apart

Competitor analysis helps you understand your startup’s position in the marketplace in comparison to your competition.

So, in this step, analyse you direct and indirect competitors.

State points showing their strengths, weaknesses and how your startup is capable to stand strong against the existing players.

Write the advantages you have against your competitors and how your startup separates itself from the crowd.

4. Financial Management

Your company can grow as long as it can keep up with its finances.

Investors don’t hesitate to back entrepreneurs who are well versed with money.

So, you need to have all your financial numbers in order when you’re writing a business plan.

If you lack the financial planning skills, start with basic things like:

Try to be accurate and if you are unclear about expenses, estimate higher. 

Estimating a bit higher will provide you with a margin of safety.

In the example above, If you require INR 3 Lakh to manage the startup, it may not be a bad idea to raise 4-4.5 lakh.

Having some extra cash in the bank can provide safety in case something uncertain comes up.

Read: 7 Best Financial Tools For Startups

5. Financial Projections And Goals

 In simple terms, a financial projection is a forecast/projection of future revenues and expenses.

financial projection for startup are a must to incorporate in your business plan.

Its quite obvious that you won’t have any income statements, balance sheets, cash flow reports, etc. if your startup is not fully operational. 

So, if you are just starting, you can base your projections on the total size of the target market, in addition to the percentage of the market you think you can penetrate.

Keep the projections reasonable, and if you have an expansion strategy in mind, factor that into your financial projections also.

If you need help in financial projection for startupcontact us.

6. Marketing Strategy

Discuss your marketing strategy in the business plan. 

Start by defining your marketing goal and how will you target the potential customer.

Write in detail about your marketing approach (digital or conventional marketing), your acquisition strategy, marketing budget, etc.

Read: [Startup Marketing] A Detailed Marketing Guide For Startups

Takeaway:

Incorporate all the points mentioned above in your business plan, and it will surely help increase your chances of growth and a potential funding opportunity.

Writing a new business plan may seem like a wearisome task, but it will keep you organized and save you from the hassle later on.

If You want to Know Latest Stories of startups in India Click here – India startup News


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