5 Elements of a Successful Startup Business Plan

 Written by Elena Tahora

A startup business begins with an idea. Of course, in order for that idea to become a solid entity, there are things that you will have to accomplish first. One of the most important things that you have to do for your startup is the business plan. Your business plan will be your first ticket to success.

First of all, the business plan is what you will present to your potential investors. Your business plan will also help you evaluate every aspect of your business and keep you on the right track. Writing the business doesn’t have to be a pain. All you have to do is make sure that it has the five most important elements.

Executive Summary

The executive summary is probably the most important part of your business plan. That is because it is the part that comes right after your title page. The executive summary of your business should catch the attention of the reader, otherwise, the rest of your business plan will just go to waste.

It has to, like the name suggests, summarize everything about your business. All of the important parts of your business plan should be included in the executive summary. At the same time, you will have to keep it as short as possible, just imagine that you only have a limited time to convince someone about your business. You should finish it last so you’ll have every detail you need.

Business Description

The business description should be the easiest part to write when it comes to your business plan. This is where you, of course, describe your business and information about its nature. You should also include your mission statement and when the business was formed. Do it as if, in a way, you are telling a story.

The mission statement should serve as a way for other people to connect to you and believe that your business will become a success. It is as much for you as it is for the people you are presenting your business plan to. Keep things honest but interesting. Let the business idea speak for itself.

Analysis of customers

In order for your startup business to grow, you need to offer services or products that will satisfy the customers. Identify who your target audience is. Certain services and products target specific customers. For example, Greenr Cabs offers transportation services, and its target are customers who use public transportation.

Customer analysis should be a focal part of your marketing and business plan. Explain who will potentially buy your products or pay for the services your startup business offer. Aside from that, the capacity of your target customers to pay must also be included.

This part of your business plan can also serve as a way to analyze how to draw in new customers. In other words, the ability of your startup business to grow can be shown here.

Strategy

You have your idea for your startup business and you have already done the research when it comes to the target customers, but how will you sell your products or services to your target customers? You will answer that question in this part of your business plan. It is very easy to get carried away here so you have to be very careful.

You have to be as realistic as possible when presenting your strategy. It must be backed up by facts that you got from research. No matter how great your startup business idea is, if your strategy to sell it is not that good, you will not be able to convince the people reading your business plan.

Analysis of competition

It is quite unlikely that your startup business will not have any competition at all. With the way businesses pop up here and there, there is a big chance that you will face a competition. There is also the fact that you should not just focus on your direct competition but the indirect competition as well.

In this part of your business plan, you have to show that you have studied every possible competitor, both direct and indirect. The easiest way to identify your competition is to ask yourself, what would happen if you were not around? Where would those customers buy from? Study what their strengths and weaknesses are and be specific about how your startup business can compete with that.