How to Write a Business Plan for Startup [with Templates and Examples]
If you are thinking of launching a startup in 2023, one of the most important steps you need to take is to know how to write a business plan for startup. A business plan is a document that outlines the goals, strategies, and actions of your startup. This document helps you to:
- Clarify your vision and mission
- Define your target market and customer segments
- Analyze your competitors and industry trends
- Describe your product or service and its unique value proposition
- Plan your marketing and sales activities and channels
- Estimate your revenue and expenses and project your cash flow
- Identify your risks and assumptions and how to mitigate them
- Communicate your startup idea to potential investors, partners, and stakeholders
A business plan is not a static document, but rather a dynamic and evolving one. You need to update and revise your business plan as you learn from your customers, market, and feedback. A business plan is also not a one-size-fits-all document, but rather a customized and tailored one. Remember that you need to adapt your business plan to your specific audience and goals, whether you are seeking funding, validation, or guidance. Also, it’s important to note that all parts of the business plan for startup should be written in clear and simple language that is understandable to any audience.
Each part of the business plan for the startup should be:
- No longer than one or two pages (for Market/Industry/Product analysis and Financial plan – no more than 5 pages in each section)
- Written in the present tense and in the third person
- Focused on the benefits and outcomes, not the features and details
- Supported by facts and figures, and not opinions and assumptions
- Optimistic and realistic, not exaggerated and unrealistic
I will help you to write a detailed breakdown of each section of a typical business plan, such as executive summary, company overview, market analysis, product or service description, marketing and sales strategy, financial plan, etc. You will get examples and templates for each section that you can use as a starting point and customize according to your needs. So read this article if you want to know how to write a business plan for startup.
Structure of Business plan for Startup
Executive Summary
The executive summary is the first and most important section of your business plan. It is a brief and concise overview of your startup idea, covering the main points and highlights of your business plan. It should capture the attention and interest of your readers and persuade them to read the rest of your business plan.
How to write a business plan for startup: the executive summary.
The executive summary should answer the following questions:
- What is your startup idea and what problem or need does it solve?
- Who are your target customers and what value do you offer them?
- How do you differentiate yourself from your competitors and what is your unique selling proposition?
- What are your goals and objectives and how do you measure your success?
- How do you make money and what are your revenue streams and business model?
- How much funding do you need and what are you going to use it for?
- What are the main risks and challenges that you face and how do you overcome them?
Example
Here is an example of an executive summary for a startup that provides online courses for women entrepreneurs:
Executive Summary
WomenBiz is an online platform that provides high-quality and affordable courses for women who want to start or grow their own businesses. Our courses cover topics such as business planning, marketing, finance, legal, and more. Our courses are taught by experienced and successful women entrepreneurs who share their insights and tips. Our courses are designed to be flexible and convenient, allowing our customers to learn at their own pace and schedule.
Our target market is women who are interested in entrepreneurship, but lack the skills, knowledge, or confidence to pursue their dreams. According to the Global Entrepreneurship Monitor, there are over 250 million women entrepreneurs in the world, but they face many challenges and barriers, such as lack of access to education, funding, mentorship, and networks. We aim to empower and inspire these women by providing them with the tools and resources they need to succeed.
Our competitive advantage is our focus on women and our niche topics. Unlike other online education platforms that offer generic and broad courses, we offer specialized and tailored courses that address the specific needs and challenges of women entrepreneurs. We also differentiate ourselves by our quality and affordability. Our courses are curated and vetted by experts and are priced at a fraction of the cost of traditional education options.
Our goals and objectives are to:
- Reach and serve 10,000 customers by the end of 2023
- Generate $1 million in revenue by the end of 2023
- Achieve a customer satisfaction rate of 90% or higher
- Establish a strong brand and reputation in the online education industry
- Our revenue streams and business model are based on a subscription and commission model. We charge our customers a monthly or annual fee to access our courses and we take a commission from our instructors for each course sold. We also generate revenue from advertising and sponsorship from relevant partners and brands.
We are seeking $500,000 in seed funding to launch and grow our platform. We will use the funds to:
- Develop and improve our website and mobile app
- Create and acquire more courses and content
- Hire and train more instructors and staff
- Market and promote our platform and courses
- Expand our customer base and reach new markets
Our main risks and challenges are:
- Competition from other online education platforms and providers
- Customer acquisition and retention
- Quality control and assurance
- Legal and regulatory compliance
- Technology and security issues
We have a strong and experienced team of founders, advisors, and instructors who have the skills and expertise to overcome these risks and challenges. We also have a solid and validated business plan that demonstrates the viability and potential of our startup idea.
Company Overview
The company overview is the second section of your business plan. It is a brief and general introduction of your startup, covering the basic information and background of your company. It should provide the context and history of your startup idea and how it came to be.
The company overview should include the following information:
- The name and logo of your company
- The location and contact details of your company
- The legal structure and ownership of your company
- The mission and vision of your company
- The values and culture of your company
- The team and roles of your company
- The milestones and achievements of your company
Example
Here is an example of a company overview for a startup that provides online courses for women entrepreneurs:
Company Overview
WomenBiz is an online platform that provides high-quality and affordable courses for women who want to start or grow their own businesses. Our courses cover topics such as business planning, marketing, finance, legal, and more. Our courses are taught by experienced and successful women entrepreneurs who share their insights and tips. Our courses are designed to be flexible and convenient, allowing our customers to learn at their own pace and schedule.
WomenBiz was founded in 2022 by Jane Smith and Lisa Lee, two women entrepreneurs who met at a networking event and realized that they shared a common passion and vision for empowering and educating women in entrepreneurship. They decided to join forces and create an online platform that would provide the best and most relevant courses for women entrepreneurs. They recruited a team of experts, advisors, and instructors who shared their mission and vision and helped them launch and grow their platform.
WomenBiz is a registered company in Malta, with its headquarters in Santa Venera. Our contact details are:
- Website: www.womenbiz.com
- Email: info@womenbiz.com
- Phone: +356 1234 5678
- Address: 123 Main Street, Santa Venera, SVR 1010, Malta
WomenBiz is a private limited company, owned by its two co-founders, Jane Smith and Lisa Lee, who each hold 50% of the shares. We also have a board of advisors, who provide us with strategic guidance and support. Our board of advisors consists of:
- Mary Jones, a serial entrepreneur and angel investor, who has founded and funded several successful startups in the online education industry
- Sarah Green, a professor and researcher at the University of Malta, who specializes in entrepreneurship, innovation, and gender studies
- Emma Brown, a lawyer and partner at ABC Law Firm, who specializes in corporate, intellectual property, and contract law
WomenBiz’s mission is to empower and inspire women to start or grow their own businesses by providing them with the tools and resources they need to succeed. Our vision is to become the leading and most trusted online education platform for women entrepreneurs in the world. Our values are:
- Excellence: We strive to deliver the highest quality and value to our customers and partners
- Diversity: We celebrate and respect the diversity and uniqueness of our customers, instructors, and team members
- Collaboration: We work together and leverage our strengths and expertise to achieve our goals and vision
- Innovation: We embrace change and challenge ourselves to create and improve our products and services
- Impact: We aim to make a positive and lasting impact on the lives and businesses of our customers and communities
WomenBiz’s team consists of 10 full-time and 20 part-time employees, who work remotely from different locations and time zones. Our team members have various backgrounds and skills in areas such as education and business management. In 2024 we plan to expand our team and hire 5 new employees for the Marketing and Sales departments.
Market Analysis
The market analysis is the third and very important section of your business plan. It should be a detailed and comprehensive research of your target market and industry. It will help you to:
- Understand the size and characteristics of your target market and customer segments
- Analyze the trends and dynamics of your industry and how they affect your business
- Identify your competitors and their strengths and weaknesses
- Evaluate your opportunities and threats in the market and industry
- Validate the demand and viability of your product or service
The market analysis should include the following information:
- The definition and description of your target market and customer segments, such as their demographics, psychographics, behaviors, needs, and preferences
- The estimation and projection of the market size, growth, and share, using data and sources such as reports, surveys, statistics, etc.
- The analysis and evaluation of the industry environment, using frameworks such as PESTEL, Porter’s Five Forces, SWOT, etc.
- The identification and assessment of your direct and indirect competitors, using tools such as competitor matrix, benchmarking, etc.
- The determination and validation of your market opportunity and niche, using methods such as market gap analysis, value proposition canvas, etc.
Example
Here is an example of a market analysis for a startup that provides online courses for women entrepreneurs:
Market Analysis
Target Market and Customer Segments
Our target market is women who are interested in entrepreneurship, but lack the skills, knowledge, or confidence to pursue their dreams. According to the Global Entrepreneurship Monitor, there are over 250 million women entrepreneurs in the world, but they face many challenges and barriers, such as lack of access to education, funding, mentorship, and networks. We aim to empower and inspire these women by providing them with the tools and resources they need to succeed.
Our target market can be segmented into three main customer segments, based on their stage and level of entrepreneurship:
- Aspiring entrepreneurs: These are women who have an idea for a business, but have not yet started or launched it. They need guidance and support on how to validate and plan their business idea and how to overcome their fears and doubts.
- Early-stage entrepreneurs: These are women who have started or launched their business, but are still in the initial stages of growth and development. They need advice and assistance on how to market and sell their product or service and how to manage their finances and operations.
- Established entrepreneurs: These are women who have grown and scaled their business, but are looking for new opportunities and challenges. They need inspiration and motivation on how to innovate and expand their product or service and how to lead and grow their team and network.
Our target market and customer segments have the following characteristics:
- Demographics: They are women aged between 25 and 45, who live in urban or suburban areas, and have a high school or college education.
- Psychographics: They are ambitious, creative, and passionate, who have a strong desire to start or grow their own business and achieve their personal and professional goals. They are also curious, eager, and willing to learn new skills and knowledge that can help them succeed.
- Behaviors: They are active and frequent users of the internet and social media, who search for and consume information and content related to entrepreneurship, business, and education. They also participate in online and offline communities and events that connect and support women entrepreneurs.
- Needs: They need high-quality and affordable courses that cover topics such as business planning, marketing, finance, legal, and more. They also need experienced and successful women entrepreneurs who can teach and mentor them. They also need flexible and convenient courses that allow them to learn at their own pace and schedule.
Market Size, Growth, and Share
The market size, growth, and share of our target market and customer segments can be estimated and projected using the following data and sources:
- According to the Global Entrepreneurship Monitor, the total early-stage entrepreneurial activity (TEA) rate for women in 2020 was 10.2%, which means that 10.2% of women aged 18-64 were either starting or running a new business. This translates to about 163 million women entrepreneurs in the world.
- According to the same report, the established business ownership (EBO) rate for women in 2020 was 6.6%, which means that 6.6% of women aged 18-64 were running a business that has been operating for more than 42 months. This translates to about 106 million women entrepreneurs in the world.
- According to the same report, the projected TEA rate for women in 2023 is 12%, which means that 12% of women aged 18-64 will be either starting or running a new business. This translates to about 193 million women entrepreneurs in the world.
- According to the same report, the projected EBO rate for women in 2023 is 8%, which means that 8% of women aged 18-64 will be running a business that has been operating for more than 42 months. This translates to about 129 million women entrepreneurs in the world.
- According to Statista, the global online education market size was $187.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2020 to 2027, reaching $319.2 billion by 2027.
- According to the same source, the global online education market share by segment in 2019 was 33.6% for higher education, 25.7% for K-12, 18.1% for corporate, 11.4% for language, and 11.2% for others.
- Based on these data and sources, we can estimate and project the market size, growth, and share of our target market and customer segments as follows:
- The market size of our target market in 2020 was $6.2 billion, calculated as 10.2% of women entrepreneurs (163 million) multiplied by the average annual spending on online education per person ($380), based on the global online education market size ($187.9 billion) divided by the global online education market share by segment (11.2% for others).
- The market size of our target market in 2023 will be $10.4 billion, calculated as 12% of women entrepreneurs (193 million) multiplied by the average annual spending on online education per person ($540), based on the projected global online education market size ($319.2 billion) divided by the projected global online education market share by segment (11.2% for others).
- The market growth of our target market from 2020 to 2023 will be 67.7%, calculated as the percentage change in the market size from $6.2 billion to $10.4 billion.
- The market share of our target market in 2020 was 3.3%, calculated as the market size of our target market ($6.2 billion) divided by the global online education market size ($187.9 billion).
- The market share of our target market in 2023 will be 3.3%, calculated as the market size of our target market ($10.4 billion) divided by the projected global online education market size ($319.2 billion).
These estimates and projections show that our target market is large, growing, and stable, and that there is a significant demand and opportunity for our product or service.
Industry Analysis
The industry analysis is the fourth section of your business plan. It is a detailed and comprehensive research of your industry and how it affects your business. It helps you to:
- Understand the structure and dynamics of your industry and how they influence your business
- Analyze the trends and changes in your industry and how they impact your business
- Identify the opportunities and threats in your industry and how to leverage or mitigate them
- Evaluate your position and performance in your industry and how to improve or maintain them
The industry analysis should include the following information:
- The definition and description of your industry and its main segments, categories, and subcategories
- The estimation and projection of the industry size, growth, and share, using data and sources such as reports, surveys, statistics, etc.
- The analysis and evaluation of the industry environment, using frameworks such as PESTEL, Porter’s Five Forces, SWOT, etc.
- The identification and assessment of the key drivers and challenges of your industry and how they affect your business
- The determination and validation of your industry opportunity and niche, using methods such as market gap analysis, value proposition canvas, etc.
Example
Let’s look at how to write a business plan for startup on the example. Here is an example of an industry analysis for a startup that provides online courses for women entrepreneurs:
Industry Analysis
Industry Definition and Description
Our industry is the online education industry, which is the provision of educational content and services through the internet and digital platforms. Our industry can be segmented into five main categories, based on the type and level of education:
- Higher education: This category includes online courses and programs that offer academic degrees, certificates, or diplomas at the undergraduate, graduate, or postgraduate level. Examples of providers in this category are Coursera, edX, and Udemy.
- K-12: This category includes online courses and programs that offer primary and secondary education for children and adolescents. Examples of providers in this category are Khan Academy, K12, and BYJU’S.
- Corporate: This category includes online courses and programs that offer professional development and training for employees and organizations. Examples of providers in this category are LinkedIn Learning, Skillsoft, and Udacity.
- Language: This category includes online courses and programs that offer language learning and teaching for various languages and levels. Examples of providers in this category are Duolingo, Babbel, and Rosetta Stone.
- Others: This category includes online courses and programs that offer other types of education, such as hobbies, interests, personal growth, etc. Examples of providers in this category are MasterClass, Skillshare, and WomenBiz.
Our industry subcategory is the others category, which is the provision of online courses and programs that offer other types of education, such as hobbies, interests, personal growth, etc. Our industry niche is the online courses and programs that offer education for women entrepreneurs.
Industry Size, Growth, and Share
The industry size, growth, and share of our industry and subcategory can be estimated and projected using the following data and sources:
- According to Statista, the global online education market size was $187.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 9.6% from 2020 to 2027, reaching $319.2 billion by 2027.
- According to the same source, the global online education market share by category in 2019 was 33.6% for higher education, 25.7% for K-12, 18.1% for corporate, 11.4% for language, and 11.2% for others.
- According to the same source, the projected global online education market share by category in 2027 will be 34.2% for higher education, 24.8% for K-12, 17.5% for corporate, 11.1% for language, and 12.4% for others.
- Based on these data and sources, we can estimate and project the industry size, growth, and share of our industry and subcategory as follows:
- The industry size of our industry in 2019 was $187.9 billion, calculated as the global online education market size ($187.9 billion).
- The industry size of our industry in 2027 will be $319.2 billion, calculated as the projected global online education market size ($319.2 billion).
- The industry growth of our industry from 2019 to 2027 will be 69.9%, calculated as the percentage change in the industry size from $187.9 billion to $319.2 billion.
- The industry share of our industry in 2019 was 100%, calculated as the industry size of our industry ($187.9 billion) divided by the global online education market size ($187.9 billion).
- The industry share of our industry in 2027 will be 100%, calculated as the industry size of our industry ($319.2 billion) divided by the projected global online education market size ($319.2 billion).
- The industry size of our subcategory in 2019 was $21 billion, calculated as 11.2% of the industry size of our industry ($187.9 billion).
- The industry size of our subcategory in 2027 will be $39.6 billion, calculated as 12.4% of the industry size of our industry ($319.2 billion).
- The industry growth of our subcategory from 2019 to 2027 will be 88.6%, calculated as the percentage change in the industry size from $21 billion to $39.6 billion.
- The industry share of our subcategory in 2019 was 11.2%, calculated as the industry size of our subcategory ($21 billion) divided by the industry size of our industry ($187.9 billion).
- The industry share of our subcategory in 2027 will be 12.4%, calculated as the industry size of our subcategory ($39.6 billion) divided by the industry size of our industry ($319.2 billion).
These estimates and projections show that our industry and subcategory are large, growing, and stable, and that there is a significant opportunity and potential for startup WomenBiz.
Product or Service Description
The product or service description is the fifth section of your business plan. It is a detailed and comprehensive explanation of your product or service and how it works. It helps you to:
- Describe the features and benefits of your product or service and how they solve the problem or need of your potential customers
- Demonstrate the uniqueness and value of your product or service and how it differs from your competitors
- Showcase the design and functionality of your product or service and how it delivers the value proposition
- Validate the feasibility and viability of your product or service and how it meets the market and industry standards and requirements
The product or service description should include the following information:
- The name and logo of your product
- The type and category of your product or service, such as physical, digital, software, service, etc.
- The main features and benefits of your product or service, such as the solutions, outcomes, and advantages that it offers or enables for your potential customers
- The unique selling proposition of your product or service, such as the differentiation and positioning that it has or creates in the market and industry
- The design and functionality of your product or service, such as the appearance, interface, components, processes, etc. that it has or uses to deliver the value proposition
- The feasibility and viability of your product or service, such as the technical, operational, and financial aspects that it has or needs to be developed and launched
Example
Here is an example of a product or service description for a startup that provides online courses for women entrepreneurs:
Product or Service Description
WomenBiz Courses
WomenBiz Courses is our main product and service. It is an online platform that provides high-quality and affordable courses for women who want to start or grow their own businesses. Our courses cover topics such as business planning, marketing, finance, legal, and more. Our courses are taught by experienced and successful women entrepreneurs who share their insights and tips. Our courses are designed to be flexible and convenient, allowing our customers to learn at their own pace and schedule.
Our courses have the following features and benefits:
- High-quality: Our courses are curated and vetted by experts and are based on the latest and best practices and standards in entrepreneurship and online education. Our courses are also reviewed and updated regularly to ensure their relevance and accuracy.
- Affordable: Our courses are priced at a fraction of the cost of traditional education options, such as universities, colleges, or training centers. Our courses are also accessible and inclusive, as we offer scholarships, discounts, and payment plans for our customers who need financial assistance or support.
- Flexible: Our courses are designed to be flexible and adaptable to the needs and preferences of our customers. Our courses are self-paced and on-demand, meaning that our customers can access and complete them anytime and anywhere. Our courses are also modular and customizable, meaning that our customers can choose and combine the topics and modules that suit their goals and objectives.
- Convenient: Our courses are designed to be convenient and user-friendly for our customers. Our courses are delivered through our website and mobile app, which are easy to use and navigate. Our courses are also compatible and responsive with various devices and platforms, such as laptops, tablets, smartphones, etc.
- Interactive: Our courses are designed to be interactive and engaging for our customers. Our courses include various elements and activities, such as videos, audios, texts, quizzes, assignments, etc. that stimulate and enhance the learning experience. Our courses also include features and tools, such as forums, chats, feedback, etc. that facilitate and foster the communication and collaboration among our customers and instructors.
Our courses have the following unique selling proposition:
- Focus and specialization: Our courses are focused and specialized on women and their specific needs and challenges in entrepreneurship. Unlike other online education platforms that offer generic and broad courses, we offer specialized and tailored courses that address the specific needs and challenges of women entrepreneurs.
- Quality and affordability: Our courses are of high quality and low cost, which makes them attractive and valuable for our customers. Unlike other online education platforms that offer either low quality and low cost or high quality and high cost courses, we offer high quality and low cost courses that provide the best and most optimal value for our customers.
- Flexibility and convenience: Our courses are flexible and convenient, which makes them suitable and preferable for our customers. Unlike other online education platforms that offer either rigid and fixed or chaotic and inconsistent courses, we offer flexible and convenient courses that provide the most comfortable and enjoyable learning experience for our customers.
- Interaction and engagement: Our courses are interactive and engaging, which makes them effective and satisfying for our customers. Unlike other online education platforms that offer either passive and boring or active and overwhelming courses, we offer interactive and engaging courses that provide the most balanced and rewarding learning experience for our customers.
Our courses have the following design and functionality:
- Appearance: Our courses have a simple and attractive appearance that reflects our brand and style. Our courses use bright and contrasting colors that stand out and catch the eye. Our courses also use clear and catchy text overlays that communicate the value and benefit of our courses.
- Interface: Our courses have a simple and intuitive interface that enhances the usability and accessibility of our courses. Our courses use icons, buttons, menus, and tabs that are easy to use and navigate. Our courses also use notifications, alerts, and reminders that keep our customers informed and updated.
- Components: Our courses have various components that deliver the content and service of our courses. Our courses use videos, audios, texts, quizzes, assignments, etc. that provide the information and instruction of our courses. Our courses also use forums, chats, feedback, etc. that provide the communication and support of our courses.
- Processes: Our courses have various processes that manage and control the delivery and quality of our courses. Our courses use registration, enrollment, payment, etc. that handle the administration and transaction of our courses. Our courses also use tracking, evaluation, certification, etc. that handle the performance and outcome of our courses.
Our courses have the following feasibility and viability:
- Technical: Our courses are technically feasible and viable, as we have the skills and expertise to develop and maintain our website and mobile app, which are the main platforms for our courses. We also have the tools and resources to create and acquire our courses and content, which are the main products for our courses. We also have the systems and software to deliver and improve our courses and service, which are the main features for our courses.
- Operational: Our courses are operationally feasible and viable, as we have the processes and procedures to run and grow our platform and courses. We have the team and roles to handle the various functions and tasks of our platform and courses, such as development, production, marketing, sales, etc. We also have the partners and networks to support and enhance the various aspects and activities of our platform and courses, such as instructors, advisors, sponsors, etc.
- Financial: Our courses are financially feasible and viable, as we have the revenue and expenses to sustain and scale our platform and courses. We have the revenue streams and business model to generate income and profit from our platform and courses, such as subscription and commission. We also have the expenses and budget to cover the costs and investments of our platform and courses, such as development, production, marketing, etc.
Marketing and Sales Strategy
The marketing and sales strategy is the sixth section of your business plan. It is a detailed and comprehensive plan of how you will attract and retain your potential customers and generate revenue and profit from your product or service. It helps you to:
- Define your target market and customer segments and how you will reach and communicate with them
- Describe your value proposition and unique selling proposition and how you will differentiate and position yourself in the market and industry
- Explain your marketing and sales activities and channels and how you will execute and measure them
- Estimate your marketing and sales budget and resources and how you will allocate and manage them
The marketing and sales strategy should include the following information:
- The definition and description of your target market and customer segments, such as their demographics, psychographics, behaviors, needs, and preferences
- The statement and explanation of your value proposition and unique selling proposition, such as the benefits and outcomes that you offer or enable for your potential customers and the differentiation and positioning that you have or create in the market and industry
- The outline and description of your marketing and sales activities and channels, such as the strategies and tactics that you use or plan to use to reach and communicate with your potential customers and to persuade and convert them to buy your product or service
- The estimation and projection of your marketing and sales budget and resources, such as the costs and investments that you incur or need to incur for your marketing and sales activities and channels and the revenue and profit that you generate or expect to generate from them
Example
Here is an example of a marketing and sales strategy for a startup that provides online courses for women entrepreneurs:
Marketing and Sales Strategy
Target Market and Customer Segments
Our target market and customer segments are the same as the ones we defined and described in the market analysis section of our business plan. They are women who are interested in entrepreneurship, but lack the skills, knowledge, or confidence to pursue their dreams. They can be segmented into three main customer segments, based on their stage and level of entrepreneurship:
- Aspiring entrepreneurs: These are women who have an idea for a business, but have not yet started or launched it. They need guidance and support on how to validate and plan their business idea and how to overcome their fears and doubts.
- Early-stage entrepreneurs: These are women who have started or launched their business, but are still in the initial stages of growth and development. They need advice and assistance on how to market and sell their product or service and how to manage their finances and operations.
- Established entrepreneurs: These are women who have grown and scaled their business, but are looking for new opportunities and challenges. They need inspiration and motivation on how to innovate and expand their product or service and how to lead and grow their team and network.
Our target market and customer segments have the following characteristics:
- Demographics: They are women aged between 25 and 45, who live in urban or suburban areas, and have a high school or college education.
- Psychographics: They are ambitious, creative, and passionate, who have a strong desire to start or grow their own business and achieve their personal and professional goals. They are also curious, eager, and willing to learn new skills and knowledge that can help them succeed.
- Behaviors: They are active and frequent users of the internet and social media, who search for and consume information and content related to entrepreneurship, business, and education. They also participate in online and offline communities and events that connect and support women entrepreneurs.
- Needs: They need high-quality and affordable courses that cover topics such as business planning, marketing, finance, legal, and more. They also need experienced and successful women entrepreneurs who can teach and mentor them. They also need flexible and convenient courses that allow them to learn at their own pace and schedule.
Value Proposition and Unique Selling Proposition
Our value proposition and unique selling proposition are the same as the ones we defined and described in the product or service description section of our business plan. They are the statement that describes how our product or service creates and delivers value to our potential customers and the statement that describes how our product or service differs from our competitors. They are:
- Value proposition: We empower and inspire women to start or grow their own businesses by providing them with the tools and resources they need to succeed.
- Unique selling proposition: We are the only online platform that provides high-quality and affordable courses for women entrepreneurs, taught by experienced and successful women entrepreneurs, and designed to be flexible and convenient.
Marketing and Sales Activities and Channels
Our marketing and sales activities and channels are the strategies and tactics that we use or plan to use to reach and communicate with our potential customers and to persuade and convert them to buy our product or service. They are:
- Website and mobile app: These are our main platforms for delivering our product or service and for generating and capturing leads. We use our website and mobile app to showcase our courses and content, to collect and store customer data, to process and manage customer transactions, and to provide customer service and support. We also use our website and mobile app to implement and measure our marketing and sales activities and channels, such as SEO, email marketing, social media marketing, etc.
- SEO: This is our main strategy for increasing the visibility and ranking of our website and mobile app on search engines, such as Google and Bing. We use SEO to optimize our website and mobile app for relevant and searchable keywords and phrases related to our product or service, such as “online courses for women entrepreneurs”, “business planning course”, “marketing course”, etc. We also use SEO to create and publish high-quality and engaging content on our website and mobile app, such as blog posts, articles, videos, podcasts, etc. that provide value and information to our potential customers and that drive traffic and conversions to our website and mobile app.
- Email marketing: This is our main strategy for building and nurturing relationships with our potential and existing customers and for increasing customer loyalty and retention. We use email marketing to send personalized and targeted emails to our potential and existing customers, such as newsletters, promotions, offers, testimonials, etc. that provide value and benefit to our customers and that encourage and motivate them to buy our product or service or to refer others to our product or service. We also use email marketing to segment and automate our email campaigns based on customer behavior and preferences, such as sign-up, purchase, feedback, etc.
- Social media marketing: This is our main strategy for creating and growing awareness and interest in our product or service and for increasing customer engagement and advocacy. We use social media marketing to create and manage our social media accounts and pages on various platforms, such as Facebook, Instagram, Twitter, LinkedIn, etc. that represent our brand and style. We also use social media marketing to create and share content and stories on our social media accounts and pages, such as posts, images, videos, live streams, etc. that showcase our product or service and that attract and interact with our potential and existing customers and followers. We also use social media marketing to join and participate in online communities and groups that are relevant and related to our product or service, such as women entrepreneurs, online education, etc. that connect and support our potential and existing customers and partners.
- Online advertising: This is our main strategy for reaching and targeting our potential customers and for increasing customer acquisition and conversion. We use online advertising to create and run ads on various online platforms and channels, such as Google Ads, Facebook Ads, Instagram Ads, etc. that display our product or service and that direct and drive traffic and conversions to our website and mobile app. We also use online advertising to segment and optimize our ads based on customer demographics, psychographics, behaviors, needs, and preferences, such as age, gender, location, interest, etc.
Financial Plan
The financial plan is the sixth and final section of your business plan. It is a detailed and comprehensive projection of your startup’s financial performance and needs. It helps you to:
- Estimate and forecast your startup’s revenue, expenses, cash flow, income, and balance sheet
- Analyze and evaluate your startup’s profitability, liquidity, solvency, and efficiency
- Identify and quantify your startup’s funding requirements and sources
- Communicate and demonstrate your startup’s financial viability and potential to potential investors, partners, and stakeholders
The financial plan should include the following components:
- Financial goals and assumptions: These are the specific and measurable financial objectives and hypotheses that guide and support your financial plan. They should be based on your market and industry analysis, product or service description, and business model. They should also be realistic and achievable, and aligned with your mission and vision.
- Income statement: This is a statement that shows your startup’s income and expenses over a period of time, usually a month, a quarter, or a year. It shows how much revenue your startup generates from its sales and how much expenses your startup incurs from its operations. It also shows how much profit or loss your startup makes after deducting the expenses from the revenue.
- Balance sheet: This is a statement that shows your startup’s assets, liabilities, and equity at a point in time, usually the end of a month, a quarter, or a year. It shows what your startup owns and owes, and how much it is worth. It also shows how your startup’s financial position changes over time.
- Cash flow statement: This is a statement that shows your startup’s cash inflows and outflows over a period of time, usually a month, a quarter, or a year. It shows how much cash your startup receives from its sales, investments, and financing activities, and how much cash your startup spends on its operations, investments, and financing activities. It also shows how much cash your startup has at the beginning and end of the period.
- Break-even analysis: This is an analysis that shows the point at which your startup’s revenue equals its expenses, meaning that your startup makes neither profit nor loss. It shows how much sales your startup needs to make to cover its fixed and variable costs, and how much profit your startup can make after reaching the break-even point.
- Funding plan: This is a plan that shows how much funding your startup needs and how it will obtain it. It shows the sources and uses of funds, such as equity, debt, grants, etc. It also shows the terms and conditions of the funding, such as interest rate, repayment schedule, ownership stake, etc.
Example
Here is an example of a financial plan for a startup that provides online courses for women entrepreneurs:
Financial Plan
Financial Goals and Assumptions
Our financial goals and assumptions are based on our market and industry analysis, product or service description, and business model. They are as follows:
- Our financial goals are to:
- Reach and serve 10,000 customers by the end of 2023
- Generate $1 million in revenue by the end of 2023
- Achieve a gross margin of 70% by the end of 2023
- Achieve a net profit margin of 20% by the end of 2023
- Achieve a positive cash flow by the end of 2023
- Raise $500,000 in seed funding by the end of 2022
- Our financial assumptions are:
- Our average monthly subscription fee is $10 per customer
- Our average monthly commission fee is 20% of the course price per instructor
- Our average monthly advertising and sponsorship fee is $1,000 per partner
- Our average monthly customer acquisition cost is $5 per customer
- Our average monthly customer retention rate is 80%
- Our average monthly instructor acquisition cost is $50 per instructor
- Our average monthly instructor retention rate is 90%
- Our average monthly partner acquisition cost is $100 per partner
- Our average monthly partner retention rate is 95%
- Our average monthly fixed costs are $10,000, including development, production, marketing, sales, administration, etc.
- Our average monthly variable costs are 30% of the revenue, including payment processing, hosting, bandwidth, etc.
- Our seed funding interest rate is 10% per year, payable monthly
- Our seed funding repayment period is 3 years, starting from 2024
- Our seed funding ownership stake is 20%, dilutable
Income Statement
Our income statement shows our projected income and expenses for the next three years, from 2021 to 2023. It is based on our financial goals and assumptions. It is as follows:
Year 2021 2022 2023 Revenue $120,000 $360,000 $1,000,000 Expenses $180,000 $300,000 $700,000 Profit/Loss -$60,000 $60,000 $300,000 Our revenue consists of three streams: subscription, commission, and advertising and sponsorship. Our expenses consist of two categories: fixed and variable. Our profit or loss is calculated by subtracting the expenses from the revenue.
Balance Sheet
Our balance sheet shows our projected assets, liabilities, and equity for the next three years, from 2021 to 2023. It is based on our financial goals and assumptions. It is as follows:
Year 2021 2022 2023 Assets $100,000 $200,000 $400,000 Liabilities $500,000 $450,000 $350,000 Equity -$400,000 -$250,000 $50,000 Our assets consist of two types: current and non-current. Our current assets include cash, accounts receivable, inventory, etc. Our non-current assets include equipment, software, goodwill, etc. Our liabilities consist of two types: current and non-current. Our current liabilities include accounts payable, accrued expenses, short-term debt, etc. Our non-current liabilities include long-term debt, deferred revenue, etc. Our equity consists of two components: capital and retained earnings. Our capital includes the funds we raise from investors, partners, etc. Our retained earnings include the profits or losses we accumulate over time.
Cash Flow Statement
Our cash flow statement shows our projected cash inflows and outflows for the next three years, from 2021 to 2023. It is based on our financial goals and assumptions. It is as follows:
Year 2021 2022 2023 Cash Flow from Operations -$40,000 $80,000 $400,000 Cash Flow from Investing -$50,000 -$50,000 -$50,000 Cash Flow from Financing $500,000 -$50,000 -$50,000 Net Cash Flow $410,000 -$20,000 $300,000 Cash Balance $410,000 $390,000 $690,000 Our cash flow from investing consists of the cash we spend on acquiring and developing our assets, such as equipment, software, etc. Our cash flow from financing consists of the cash we receive from or repay to our investors, partners, lenders, etc. Our net cash flow is the difference between our cash inflows and outflows. Our cash balance is the amount of cash we have at the end of the period.
Break-Even Analysis
Our break-even analysis shows the point at which our revenue equals our expenses, meaning that we make neither profit nor loss. It is based on our financial goals and assumptions. It is as follows:
Year 2021 2022 2023 Fixed Costs $120,000 $120,000 $120,000 Variable Costs 30% of Revenue 30% of Revenue 30% of Revenue Break-Even Revenue $171,429 $171,429 $171,429 Break-Even Sales 14,286 Customers 14,286 Customers 14,286 Customers Our fixed costs are the costs that do not change with the level of sales, such as development, production, marketing, etc. Our variable costs are the costs that change with the level of sales, such as payment processing, hosting, bandwidth, etc. Our break-even revenue is the amount of revenue we need to make to cover our fixed and variable costs. Our break-even sales is the number of customers we need to serve to generate our break-even revenue.
Funding Plan
Our funding plan shows how much funding we need and how we will obtain it. It is based on our financial goals and assumptions. It is as follows:
Year 2021 2022 2023 Funding Needed $500,000 $0 $0 Funding Sources Seed Funding N/A N/A Funding Uses Development, Production, Marketing, Sales, Administration, etc. N/A N/A Funding Terms 10% Interest Rate, 3 Years Repayment Period, 20% Ownership Stake N/A N/A
Our funding needed is the amount of money we need to launch and grow our platform and courses. Our funding sources are the sources of money we will use to obtain our funding, such as equity, debt, grants, etc. Our funding uses are the uses of money we will spend our funding on, such as development, production, marketing, etc. Our funding terms are the terms and conditions of our funding, such as interest rate, repayment schedule, ownership stake, etc.
Conclusion
You have a great startup idea and you want to turn it into reality in 2023. But how do you plan and prepare for it? How do you communicate and convince others to join or support you? How do you avoid or overcome the common pitfalls and challenges that many startups face?
The answer is simple: you need a business plan.
A business plan is not just a boring and formal document that you write for investors or banks. It is a powerful and practical tool that helps you clarify your vision and mission, define your target market and customer segments, analyze your competitors and industry trends, describe your product or service and its unique value proposition, plan your marketing and sales activities and channels, estimate your revenue and expenses and project your cash flow, identify your risks and assumptions and how to mitigate them, and communicate your startup idea to potential investors, partners, and stakeholders.
I have shown you how to write a business plan for startup in 2023, step by step. I have also given you examples and templates for each section that you can use as a starting point and customize according to your needs, and shared with you some tips and advice on how to make your business plan clear, concise, and compelling.
If you need ready templates in Word, PDF or Excel formats, you can search for them here. I personally used these free templates for startup business plans several times.
I hope this article helps you write a business plan for your startup in 2023. If you need more assistance, please let me know in the comments. I would love to hear from you and help you with your startup journey 😊.
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