Every business that is starting up is required to build up a layout that defines the plans and strategies that the startup plans to adopt to ensure its proper functioning. Writing a business plan (1) can be hectic tasks that involve a lot of ‘yes’ and ‘nos’ from your core team.
However, it is the entire process of building a startup business plan template that assists the company in the running in an organized manner to reach its ultimate goals. Now that you’ve come to terms with the final business plan, its time to lay it out on the perfect business plan format.
10 Key Elements of Business Plan Format for Entrepreneurs & Startups
If you’re a startup (2) or an entrepreneur writing down a business plan for your company, ensure that it contains the following elements, helping you form the ultimate startup business plan template,
- An executive summary
- Company vision and mission statements
- Your company description
- Market research and analysis
- Details about the product/services offered
- Unique Selling Point (3)
- The management & operation structure of the firm
- Marketing and sales strategy adopted
- Financial statements
Purpose of Startup Business Plan Template
A business plan template essentially serves two significant purposes (4). Here, let’s talk about the two fundamental purposes served by a business plan, thereby determining the importance of one.
- Guidance: A business plan serves as a guide for startups and companies to reach its ultimate goal. It assists in running a company step by step, helping it analyze its marketing and sales plan to step ahead in the business race.
- Investments: A robust business plan assists a company in its day to day functioning but also helps it by luring potential investors in providing support through investments.
Structure of Business Plan Templates
Moving ahead, now that you know the principal elements and purpose of forming a business plan, we’ll be discussing the basic structure of business plan templates for startup & entrepreneurs.
1. Executive Summary
The executive summary of a startup is the first section of a startup business plan template that is regarded as the most part of a business plan. Ensure that the executive summary is written precisely and explains the main elements of the business plan in brief.
Here’s are the sub-sections of an executive summary (company description & executive summary are often merged in business plans):
- Business name and contact details
- Products/services offered
- Mission and vision statements
- Core team introduction
- Initial financing requirements (if applicable)
- The purpose of the business plan (gain investments, market growth, etc.)
2. Company Description
This section must include all the details about your company and its functioning. The sub-parts to be included in a company description are:
- Company’s legal structure (5)
- Company formation history and information
- Founders of the company
- Product/services overview along with markets served
- Current business stage (6)
3. Products and Services
In this part, you must provide a detailed account of all the products and services you plan to deliver to your customer base. Additionally, you can also include how your product is or will serve by filling out the market gap or provide solutions.
Elements of a product & services section include:
- Description of the core product/service
- Market problem/ market gap
- Solution provided by the product
- Product diagrams or pictures
- Unique Selling Point
- Pricing
- Copyright, patent, or trade secret data info
- Potential future product/service range
4. Marketing Plan
The marketing plan of a business should elaborate upon the market analysis conducted by the company and the results derived from it. It also demonstrates the targeted demographical (7) audience and describes the strategies to be adopted to elevate the product in the market.
A marketing plan includes,
- Market research
- Industry description, outlook, and statistics
- SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) (8)
- Target audience research
- Branding plans
- Product elevator pitches & tag lines
- Initial market reaction to product (if any)
- Marketing budget
5. Strategy and Implementation for Sales
This section elaborates upon the sales strategy that the company plans to convert leads generated through marketing into sales. It includes a company’s plans to promote the product along with the implementation of the plan.
It includes,
- Promotional strategies to be adopted
- Cost and pricing of promotions
- Details about company functioning for acquiring sales
6. Operational Plan
The operational plan summarises and demonstrates the organization and requirements for smooth company operations.
An operational plan includes details of,
- Office space and facility required
- Operating hours for employees
- Approximate team of employees
- Equipment requirements
- Technology requirements
- Logistics and distribution
- Quality control
- Legal and accounting requirements
7. Team Overview
The team overview recognizes the founders and core team members of the company, including the board of directors, that will assist in forming crucial decisions for reaching its ultimate goals.
The team overview includes info about,
- Founders and executive team
- Shareholders and investors
- Board of directors
- Advisory bodies
- Essential team members and department heads
8. Financial Plan
Often, a financial plan is required to be developed with the assistance of a professional accountant or individual with experience in forming financial plans.
Financial plans act as a mirror for a company’s success. It includes,
- Income statements
- Cash flow projections
- Current balance sheet
- Break-even analysis (9)
- Finances during the last 12 months (if applicable)
Business Plan Template
To sum up, the basic business plan template would look to contain the elements and structure given below. Moreover, the business plan templates can be modified according to a business’s personal approach. Here’s the primary business plan format,
1. Executive Summary
- Business name and contact details
- Products/services offered
- Mission and vision statements
- Core team introduction
2. Company Description
- Company’s legal structure
- Company formation history and information
- Founders of the company
- Product/services overview along with markets served
- Current business stage
3. Products and Services
- Description of the core product/service
- Market problem & solution
- Product diagrams or pictures
- Unique Selling Point
- Copyright, patent, or trade secret data info
- Potential future product/service range
4. Marketing Plan
- Market research
- Industry description, outlook, and statistics
- SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats)
- Branding plans
- Marketing budget
5. Strategy and Implementation
- Promotional strategies to be adopted
- Cost and pricing of promotions
- Details about company functioning for acquiring sales
6. Operational Plan
- Office space and facility required
- Operating hours for employees
- Equipment requirements
- Technology requirements
- Logistics and distribution
- Quality control
- Legal and accounting requirements
7. Team Overview- Management
- Founders and executive team
- Shareholders and investors
- Board of directors
- Advisory bodies
- Essential team members and department heads
8. Financial Plan
- Income statements
- Cash flow projections
- Current balance sheet
- Break-even analysis
- Finances during the last 12 months (if applicable)
Conclusion
Being a startup, your finances should be displayed thoroughly. Additionally, if you hold no previous marketing reaction reports about the product, you need to follow a compelling approach while presenting the marketing plans to serious investors.
