More about creating a Business Plan

We present a simple example you can start using immediately. However, you may have some other requirement and therefore, need slightly different versions. In essence; our Business Plan borrows headlines from the Business Model Canvas (BMC). In our template, we have just added some more headlines. You find those later as item 10-15. A good setup of a Business plan can then be as we describe below.

 

The Step-By-Step Guideline

Start by creating the list of headings that represent the sections of your business plan.

An Executive Summary Business plan should be written after you are done with all other sections and in detail completely described all the aspects of your business. It may sound dull, but it is very fun and useful. Once you’re done, it will give you a great head start in meetings with interested and investors, and those we want to have contact with! Here we go.

Work on sections 1 – 9 in order and pace you prefer. You can add more information as you progress with developing your business. In our example, the template in the right column headings corresponds to 1-9 with the Business Model Canvas (BMC), and 10-15 headings further down in the text, you should add.

10. Team
It is very imperative that you can describe the team. Who are included in your team? What experience do they have? How can your team members contribute? You have to identify if it lacking some experience and knowledge. Then, describe how to add such missing capacities to the team to achieve success.

11. Risk analysis
Describe and assess the risks that exist in the different parts in the business model that can threaten the success of your business. Is there, for example, around technology and environmental adaptation, difficult to get hold of skilled staff? Are there risks identified around your marketing plan or financing? Explain how you handle these risks and plan to minimize the risks.

Table: Business plan template

A basic Business plan should include the following headings:

Executive Summary Business plan (last section to be written!)
1. Customer Segment
2. Value Proposition
3. Distribution Channels
4. Customer Relations
5. Revenues
6. Key Resources
7. Key Activities
8. Key Partnerships
9. Costs
10. Team
11. Risk Analysis
12. Activity Plan
13. Cash flow/Profit and Loss Budget
14. Financing
15. Enclosures

12. Activity plan
Create an activity plan with formulated activities and milestones for the next 2-5 years that describe the company’s future. You should add more details describing the near future. If you are planning to seek funds from investors, milestones will serve as a good indicator of what you plan to do and how much capital you need. However, it can also be used to measure your progress of actual deliveries within agreed timeframes.

Describe carefully and in detail the most important milestones, time frames, and required actions.
Below is a link to a handy template you can exploit to create this section.
 
 
 13. Cash flow/Profit and Loss Budget (Liquidity and Result Budget)
Describe your budget and explain the numbers you enter and the information and assumptions it is based on. You may need to present a budget that extends 1- 3 years.
Below are a few different templates you can make use of. Click the respective link to download the spreadsheets.
 
 
14. Financing
in order to have the attention of your idea, it is good to write a so-called memorandum, an investment offer.
How do you finance your idea? It can be helpful to find several different ways and combining them. When you show present this, you gain the trust of others and spread the risks. It is something that investors appreciate.
A so-called Memorandum is for smaller investments. Is it a major investment, it is called a prospect. It is subject to the Prospect Act controlled by the FSA (Finansinspektionen).
In both, you should describe how much capital you need and what you are willing to sell to investors of your own property;

  • How much do you think the idea is worth and how do you value it.
  • How much are you and the team ready to invest of time and capital.
  • How much work have you already done and
  • How much have you invested so far?

15. Enclosures
Summary Business Plan. You write this section last when clause 1-15 are completed. Then you have the texts to work with. You can choose to add it to the top of the table of content (see example in the right margin), or at the end as an attachment.

Innovastart Analytics. Here you should attach the results you have got from Innovastart Analytics. This will serve as a good indicator of how far you have got in developing your idea.
Team member resumes. You should provide a detailed description of your team members in the Team section- focusing on how they contribute to the company, you should include their resumes in appendices.