How to Write a Business Plan: A Practical Walkthrough
Thinking about launching a startup in Andhra Pradesh or anywhere in India? The first thing investors ask for is a clear, concise business plan. It’s not just paperwork – it’s the roadmap that shows where you’re headed, how you’ll get there, and why you’ll succeed. Below is a no‑fluff, step‑by‑step guide that you can start using right now.
1. Nail the Executive Summary
Even though it sits at the front, write the executive summary last. Summarize your business idea in 1‑2 paragraphs: what you do, who you serve, and the biggest benefit you deliver. Include a quick snapshot of your market size, revenue model, and the amount of funding you need. Keep it punchy – an investor should get the gist in under a minute.
2. Describe Your Product or Service
Explain what you’re selling in plain language. If it’s a tech app, describe the core features and the problem they solve. Use real examples: “Our app helps farmers in Guntur get real‑time weather alerts via SMS, cutting crop loss by 15%.” Show any prototypes, patents, or unique technology that set you apart.
Don’t forget to outline your development roadmap – what’s ready now, what’s in beta, and what you’ll launch next quarter. This tells readers you have a clear path forward.
3. Know Your Market Inside Out
Start with a market overview: total addressable market (TAM), serviceable available market (SAM), and your target segment. Use recent stats – for example, “The Indian agri‑tech market is projected to reach $7 billion by 2027.” Then dive into competitor analysis. List 3‑5 direct rivals, note their strengths, and explain how you’ll beat them – whether it’s price, features, or distribution.
Craft a buyer persona: age, job, pain points, buying behavior. When you can name a typical customer, you can tailor marketing and sales tactics that actually work.
4. Build a Realistic Revenue Model
Show exactly how you’ll make money. Is it subscription‑based, transaction fees, or a one‑time sale? Provide a three‑year forecast with assumptions: e.g., “We’ll acquire 5,000 users in year 1 at $10/month, growing 30% YoY.” Back up numbers with data – industry benchmarks, pilot results, or comparable companies.
Include unit economics – cost of acquiring a customer (CAC) versus lifetime value (LTV). If LTV is at least three times CAC, you’ll look financially healthy.
5. Outline Operations and Team
Briefly describe how you’ll run day‑to‑day: key suppliers, technology stack, and logistics. Highlight any partnerships that give you an edge – perhaps a tie‑up with a local bank for easy payments.
Introduce your core team. Investors fund people, not ideas. Mention relevant experience: “Founder A built a SaaS platform that exited for $2 million; COO B ran operations for a fast‑growing e‑commerce startup.” If you have gaps, note the roles you plan to hire.
6. Detail Funding Needs and Use of Funds
State the exact amount you’re raising and the equity you’re offering. Then break down how you’ll spend it: product development (40%), marketing (30%), hiring (20%), and working capital (10%). This shows you’ve thought through cash flow and aren’t just guessing.
Wrap up with an exit strategy – acquisition, IPO, or stable cash flow. Even if you’re early, a clear vision helps investors see the long‑term upside.
Now that you have the skeleton, plug your specifics into each section. Use the free template below, customize the numbers, and you’ll have a business plan that reads like a story investors want to fund. Good luck, and remember: clarity beats complexity every time.
This article breaks down the seven essential things every business plan should include. You’ll find clear explanations for each part, along with useful tips and real-world facts that make building a business plan less stressful. Whether you're starting a brand new company or reworking an old plan, you’ll get straight answers and practical advice. We’ll help you avoid common traps and show you what actually matters to investors and banks. No jargon—just what you need, right when you need it.
