How to Develop a Business Plan for Your New Technology Company

Whether you’re launching a new software, an app for a mobile/desktop/laptop device, or any other type of technology such as an online video editor, you need a business plan.

A business plan is a document that outlines the goals of your company and how it plans to achieve them. A business plan should focus on many key points including the purpose of the company, the markets it will serve, and its strategy for getting customers and growing. Importantly, if you are seeking funding, most likely from angel investors or venture capitalists, you will need to explain how much funding you need, the uses of the funds and give confidence you will earn them a positive return on their investment.

Below is a simple business plan template for you to follow:

1. Executive Summary: your executive summary should be no longer than 1-3 pages and should provide an overview of your company including what you do, how you do it, and what sets you apart

2. Company Overview: in this section, you’ll include a description of your business, your mission statement, your goals and objectives, and your accomplishments to date.

3. Industry Analysis: here you will provide an overview of the market landscape. You will detail the size of your industry and trends affecting it.

4. Customer Analysis: this section should describe the customers you will be targeting. Identify  your key customer segments and their demographic and psychographic characteristics.

5. Competitive Analysis; here you will detail your strengths and weaknesses relative to competitors. For each competitor, document what they do well and importantly define how you will create long-term competitive advantage.

6. Marketing Plan: A strong marketing plan contains the four Ps: Product, Place, Price and Promotion. The first P, Product should describe the products and/or services you offer. The second P, Place, answers where you sell your offerings, for example, via a store, online or via partners. The next P is Pricing which describes whether your pricing is low, average or premium. Finally, the fourth P, Promotion defines how you will attract new customers through methods such as TV advertising, social media marketing and public relations.

7. Operations Plan: this section discusses your day-to-day internal operations such as product fulfillment, human resource, financial, legal and IT. It also lays out your future growth milestones.

8. Management Team: here you will document the key members of your management team and detail how their backgrounds make them qualified to help grow your business.

9. Financial Plan: your financial plan includes 5-year projections showing your income statement, balance sheet and cash flow statement. Here you will document your funding needs and show that you will earn a respectable return on investment for lenders and investors.

10. Appendix: finally, your appendix will include supporting documentation such as customer lists, IP protection, leases, etc., to further give credibility to readers that your company will be successful.

Creating a business plan will help determine the best possible roadmap for growing your business. It is an important step for all new companies to take that can dramatically improve your chances of success.

For additional information please visit the Local Digital Business.

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