The business plan provides the details of your business. It takes the focus of the business model and builds upon it. It explains the equipment and staff needed to meet the details of the business model. It also explains the marketing strategy of your startup, or how your business will attract and retain customers, and deal with the competition. Furthermore, the business plan presents financial expectations for sales, costs and profit.
Overall, the business plan supports the business model and explains the steps needed to achieve the goals of that model. Business plan don’t need to be excessively long or detailed, but provide a better view for outsider of the company.
You can think of a business model and business plan like the process of building a house. Blueprint is your business model you need to validate. After the validation process is done can you create a “house business plan” with more detailed information on building time, contract, financing etc. Validation questions for the house vs (business model) could be the following;
- Do I and my family like it? (customer fit)
- Can I afford it? (feasibility, finance)
- Do I need to consult neighbours for acceptance? (other stakeholders)
- Do I get a building permit for the house? (legal issues, IPR)?
The same applies to a Startup business plan. You do it after the initial idea validation.
CREATING A BUSINESS PLAN
Business plans usually have an Executive summary and detailed information that covers the following topics. Summary and main topics:
- What is the business?
- What is the market and our target?
- Team skill summary;
- Forecast profit figures and funding requirements;
- Prospects for the investor/ lender.
In the StartUp programme you create a short version of the real business plan. Try to create a plan that will inspire you and potential investors and at the same time is realistic and doable.
**Goal You have a clear business plan for your company that you can show to potential investors or your local business incubator.