How to Write a Business Plan: Step-by-Step Guide for Startups

How to Write a Business Plan: Step-by-Step Guide for Startups

"Plans are worthless, but planning is everything." — Dwight D. Eisenhower.

You might think a 20-page document is outdated in the age of lean startups. While you don't need a novel, you DO need a roadmap. A business plan forces you to answer the hard questions: "How will we make money?" and "Who is the competition?" before you lose money.

1. The Executive Summary

Write this LAST, but put it FIRST. It is a 1-page summary of everything. Investors often read only this.

• The Hook: "We are the Uber for Tractors."
• The Problem: "Farmers lose 30% of harvest due to lack of machinery."
• The Solution: "On-demand tractor rentals."
• The Ask: "We are raising ₹50 Lakhs for 10% equity."

2. Company Overview

• Mission Statement: Why do you exist? (e.g., "To organize the world's information").
• History: When did you start?
• Legal Structure: Pvt Ltd? LLP? Sole Proprietorship?

3. Market Analysis (The "Why Now")

Prove that the market exists.

• TAM, SAM, SOM:
  • TAM (Total Addressable Market): Everyone in India who farms (100M).
  • SAM (Serviceable Available Market): Farmers with smartphones in Maharashtra (5M).
  • SOM (Serviceable Obtainable Market): The 50,000 farmers we can reach in Year 1.
• Competitor Analysis: Who else is doing this? (Don't say "No one." That usually means there is no market).

4. Products and Services

• What are you selling? Be specific.
• USP (Unique Selling Proposition): Why buy from you? (Cheaper? Faster? Better quality?).
• IP: Do you have patents or copyrights?

5. Marketing & Sales Strategy

• Customer Acquisition: How will they find you? (SEO? Facebook Ads? Door-to-door sales?).
• Pricing Strategy: Premium (Apple) or Mass Market (Xiaomi)?

6. Operational Plan

• Logistics: How do you deliver?
• Tech Stack: AWS? Python?
• Location: Office based or Remote?

7. Financial Plan (The "Money" Part)

This is what investors scrutinize.

• Revenue Model: Subscription? One-time sale? Commission?
• Projections: Forecast P&L (Profit & Loss) for 3 years.
  • Year 1: ₹10 Lakhs.
  • Year 2: ₹50 Lakhs.
  • Year 3: ₹2 Crores.
• Burn Rate: How much cash do you lose per month?

8. The Team

Investors bet on the jockey, not the horse.

• Founders: Show relevant experience. "Ex-Google," "10 years in Agriculture."
• Advisors: Who is guiding you?

Key Takeaways

1. Keep it Living: A business plan is not a stone tablet. Update it every quarter.
2. Be Realistic: Don't project "1% of China market" without a plan to get there.
3. Visuals: Use charts and graphs. Nobody likes walls of text.

Frequently Asked Questions

How long should it be?

For modern startups, a 10-15 slide Pitch Deck is often preferred over a 50-page document. But the thinking process remains the same.

Do I need a CA?

For the financial projections part, Yes. A CA helps make your numbers look compliant and realistic.

A goal without a plan is just a wish. Explore more startup tools on Sproutern