How to make a business plan for startups in Portugal?
A study published in the Harvard Business Review showed that managers of fast-growing startups are more likely to make a business plan. According to another study by the Strategic Entrepreneurship Journal, entrepreneurs who make a business plan significantly increase their startup’s chances of success.
As we can see, the importance of the business plan for a startup is evident. Even in an ever-changing environment, planning is winning.
The business plan for startups helps to mitigate business risks, accelerate its growth, and focus on financial issues, creating the necessary foundations to develop startup ideas in a more controlled environment, where the entrepreneur’s number one focus will be to develop a winning product.
Learn now how to make a business plan for a startup.
How to make a business plan for startups?
According to the IAPMEI explanatory guide, a business plan for a “typical” company involves a 9-point structure:
1. Executive Summary.
2. The history of the promoters.
3. The underlying market.
4. The new idea and its positioning in the market.
5. The Project / Product / Idea.
6. Commercial Strategy.
7. Business management and control.
8. Necessary investment.
9. Financial Projections / Financial Model.
Take this structure into consideration as an example to follow. However, being a startup, there are some factors to consider when developing the business plan that make all the difference. These factors are:
– the disruptive and innovative idea for the market.
– the team and its know-how.
– the size of the market.
When creating a business plan for a startup you must always keep in mind these 3 factors. Think of a business plan as an in-depth pitch, where you have the time and resources to justify and demonstrate the potential of your startup and the people who are part of the team.
But pay attention to the tone. Be simple, clear, and pragmatic. Remember that the business plan is also a management tool. A tool you come back to again and again, to make the necessary adjustment or to look for an answer to a problem that has arisen.
To help you outline the business plan for your startup, we share 6 essential tips to fill it out:
1# Describe your startup’s business model in a familiar way
The innovation inherent in startups makes it not always seem simple to describe a disruptive idea. But if you can describe a disruptive idea using familiar terms and concepts, you can sell that idea more easily.
Examples:
– Whatsapp: free sms for everyone
– Netflix: a video club at home
Learn more: 3 practical business model examples
2# With objectivity and clarity, describe the startup fundamentals.
It’s time to delve into the previous point. The following questions can help you make this description:
– What problem will the startup solve in society?
– How much is the market worth and what growth potential does it have?
– How will you profit?
– What are the investment needs?
– Who are the startup leaders and their team?
This is a key point to guide the entire structure of the business plan.
3# Do a market analysis
Is the market open to the solution you want to propose? How much is the market you want to enter worth? And how can you deliver that solution? What partners do you need? Is there competition? What will be the entry barriers?
These are some questions to answer during a market analysis. An essential step to develop a business plan that is aware of the market in which you will operate.
4# Establish your startup’s goals and objectives
To explain your startup’s business strategy and make the necessary financial projections in a business plan, you first need to establish:
– what are the goals of the startup in the short and medium term; remember that a startup is always evolving, so pay close attention to the different periodization of goals. We give 2 examples: develop an MVP version 1.0, test the product in the market with at least 5 potential customers.
– goals of your startup: these are the small steps that the startup must take to achieve the outlined goals.
5# Analyze your investment needs and identify potential funding sources
When preparing the business plan for startups, you must keep in mind where you will get the money: investors, bank, or others. Thus, project from the beginning the investment that the startup needs to achieve the outlined objectives. Review the objectives in point 4 again to outline your budget needs.
Learn more: seed capital vs venture capital – what are the differences
6# Accuracy: an executive summary straight to the point
Lastly, we will talk about the first official point of a business plan: the executive summary.
Note that the executive summary is the first impression a reader of a business plan gives. Therefore, it must be clear and objective. And even more importantly: capture attention in the very first sentence.
Try to open the executive summary with a sentence that demonstrates the problem/needs identified in the market and the solution that your startup brings to this problem.
Need help with the business plan?
Lisboa Investments specializes in preparing a business plan for startups. Get in touch with us, we will be happy to help you.
