Internet Startup Business Plan

Business Plan Articles

If you are creating an internet Startup and require investment capital, it is likely that you will need a business plan. The experts at Pro Business Plans have worked with hundreds of Internet Startups to prepare plans for investment and strategy. This article provides information for what is included in the plan and how it is typically structured.

internet Startup business plan

Internet Startup Business Plan

When investors are reviewing your Internet Startup and considering it for potential investment , there are many things that they will consider. Among the most determinant are the unique positioning and competitive advantage that you have in the market relative to the existing market players.This means either competing in an untapped market, solving a new problem, or addressing a smarter way that competitors fail to match you on. These unique elements combine to compose your business model and direct the basis for your marketing plan.

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Business Model

The business model of an Internet Startup contains a variety of elements that aggregate to form the basis of what makes you successful. It is not often adequate to have a strong value proposition for consumers, but the company must have a low cost way of implementing the value and capturing profit along the way.For instance, a business model that manufacturers a widget with many features will be valuable to consumers, but it likely unsustainable to consistently profit from. Most Internet Startups do not have any heavy operating expenses, but may incur substantial R&D costs. Therefore, it is important to understand how these are avoidable or justified in your circumstance.


market positioning

Value Proposition

The most critical elements of the business model are based around your approach to a market solution. That is, the reason that companies will pay you money in order to have access to your platform or receive fulfillment of your digital services. Investors that review your company will seek to understand exactly what your value proposition is that is sustainable and capable of outperforming your competitors.


team management

Operations Process

The operations process is how the company will be able to fulfill its obligations and either deliver a digital service or provide a platform that people would use. There are several elements that compose the operations process consisting of immediate delivery, product improvements, and a long-term strategy that shape the far reaching performance of the company.


Marketing Plan

The marketing section of an Internet Startup is best done based on the unique model of your business given the target market, business model, and budget that you may have. A marketing plan for a multi-sided platform Startup is completely different than one for an enterprise cloud software. However, some universal aspects apply such as the initial launch strategy, phased-in by a promotional plan, and an approach to customer loyalty.


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Market Launch

Most Internet Startups will need to introduce their product into the market in a formal manner if they are approaching individual consumers. The purpose of this is to gain immediate traction as the company begins and establish press coverage that will help to increase conversion rates later on.


business development

Promotions

The promotional strategy of an Internet Startup will need to be structured in a way that targets a low customer acquisition and maximizes customer loyalty. This means focusing on establishing low lead conversion costs immediately and consistently analyzing what is the lowest cost method of scaling the business. Some of the most popular promotional strategies include PPC marketing, social media, influence market, and the encouragement of digital reviews.


Financial Projections

One of the most hotly debated subjects in the Startup world is how to effectively prepare projections for an Internet Startup. There are several elements that combine in order to form the basis for this, however it is still subject to many assumptions and only providing a well-structured conclusion will be advantageous. Many Startups get confused and believe that their projections are able to form a basis to propose a Startup valuation, which is simply not feasible in most circumstances. The best approach to forming the projections is to estimate the revenue based upon similar companies and form a budget of what you will need in order to grow the company.


revenue projections

Revenue Projections

The revenue forecasts are essentially based upon the company’s projected performance relative to similar companies. A financial model that is based upon a conservative set of projections will be taken more seriously by investors and held to a higher regard. Therefore, it makes sense that your Startup provide well-structured and conservative revenue forecasts that the investment group may form their own assumptions upon.


budget forecasts

Budget Forecasts

The expense structure of an early stage company should be based upon a budget of what you will actually need in order to effectively scale the company. These elements combine as it applies to forming a conservative set of projections for growing the company. By conservative, we mean an expense structure that requests an excess of what is actually needed in order to account for contingency and under forecasted expenditures.


What is Included in Our Custom Internet Startup Business Plan?


  • Marketing Plan
  • SWOT Analysis
  • Competitive Analysis
  • Profitability Analysis
  • Personnel Plan
  • Organizational Chart
  • Company Valuation
  • Executive Summary
  • Company Description
  • Keys to Success
  • Three Year Objectives
  • Product or Service Description
  • Market Research
  • Fundraising Support
  • 12 Month & 3 Year Profit & Loss
  • 3 Year Balance Sheet
  • 12 Month & 3 Year Sales Forecast
  • 12 Month & 3 Year Cash Flows
  • Break-Even Analysis
  • Financial Ratio Analysis
  • Management Team

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