Writing a High Technology Business Plan

(jump right to the outline below)

While some of this opening information is redundant to the ``traditional" business plan outline, the contect below is different. This outline is for companies with a high tech focus and/or a fast growth business.  It presumes you will prepare a 25 page document (about the maximum you need).  For a traditional manufacturing or distribution type company, take a look at this different approach.  If your business or idea is simple, then you may not need more than 8-10 pages.  However, you do need to address each of these topics, even if only to show why it's *not* important for your business.  And as you write, write as if you were already in that business ...don't write about what you do now unless it's important for what you plan to do.

Note that packaging is important. With today's technology, it is not difficult or expensive to insert color images or accent color to make the final product more appealing, distinguish your company, and improve content retention. Especially if you are a technology company. Plan to print your business plan on a good quality laser or color printer and bind the copies in attractive covers.  While a business plan is not the place to test your fledgling graphic design talents, using a nice text layout and effective headlines will make the document look more professional.  Do invest some time in the appearance of the finished product. And proofread everything!

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Business Plan Outline

I.  Executive Summary
(maximum of 2 pages that summarizes everything in the rest of the business plan in a compelling or persuasive way) Include description and benefits of the services  you propose, market and investment potential (why should investors be interested), and management team.

2. Table of Contents
(keep it simple)

3.  Situation Analysis

Background on the opportunity, why you think the time is right, the key issues at play in the industry, how your product or service fills an unfilled niche, reasons you think you will succeed.  Chief features that distinguish yours from any other service or product. Why now is the right time to start this business.

4.  Business Objectives

Describe what your business will be. Give the where, when, why, how, and who of your first year's operations.  Indicate your short term goals and how you expect to achieve them.  Mention longer term goals and how you will set out to achieve them. Describe your product or service thoroughly, but save the technical details for the Technology appendix. Show how you've planned for alternate outcomes.  Describe your target market and assess what your potential market share will be once your company is established.

5.  Management

Spend a lot of time getting the people and their experience described well--this is the most critical section in most business plansName your key team members and describe briefly what their roles will be in the new company.  Feature their credentials relevant to managing or building a new company. Outline any special advisory panels or boards you will create to guide the company's strategy or product development. Have official letters of agreement with any key consultants describing their relationship to the company.  Describe your stock/ownership plan.  Describe how you plan to attract key personnel. Provide a reasonable schedule of personnel who will be added and describe your expectations for sequence and timing. Say how many people will you need--by type, what compensation method will you use <salary, stock>, show a sample organizational structure for the startup and for later.

6.  Market Analysis

Best if you can have this section researched professionally.  Include potential client groups (describe briefly why your product/service will appeal to them, how they currently manage without your product/service and what might cause them to prefer your product/service to what they do now).  Give facts, number, statistics, trends, and cite published research where possible. Define the market size and growth, especially in your most critical sectors.  Discuss anticipated market share you will capture, and back up your claims with justification. Assess potential competitors candidly and by name, and explain why your product or service can survive competition. Give all the potential drawbacks and potential risks that you know.  Don't hold back.  Investors need to know the potential down side of their investment, too. Provide highlights of any preliminary market research that is performed. Offer a timetable for developing your product and when the break-even point will be reached. 

6.  Business Development Strategy

Where will you open your business doors, what resources are available there that are key to your business, what professional or scientific associations do you have?  Discuss your preliminary pricing decision.  Provide an overview of your sales tactics and how you will build a client/customer base.  Discuss advertising, public relations, communications, trade shows and special events, telemarketing, direct mail or any other market and sales plans you intend to employ in promoting and selling your product.  Describe how each will reach a key audience you want to target.  Outline how you will prioritize your market segments and activities.

7.  Financial Review

Mention the market in terms of dollars and using your projected market share, attempt to provide your best guess at what your financial results will be for the first two years--quarter by quarter for each year.  Give funds required and their use (how much do you need now to open, how much over the next 3 years and when will it be needed, how will the funds be used--tie back to your business development goals).   State what assumptions have been made and why your assumptions are good. Provide benchmark goals you think you can achieve. Discuss how you will manage fast growth.  Be conservative in your numbers.  Whatever totals you come to, add 10% to it for contingencies you might not have foreseen.  Include a basic financial statement with projections for the first 2-5 years.  No investor will believe your numbers, but you  need to demonstrate that you have thought out your income and expense. 

Appendices:

• Background and Technology (include discuss of any technical processes, background on the company's founding, comparison with current methods, any patents owned or applied for, charts and tables that substantiate your claims, overview of your methodology, any technology limitation.  Describe the essence of your current technology and any breakthroughs or recent developments that may affect the science of how you do your business; describe new technologies or approaches that may become practical in the next few years.)
• Relevant Professional Literature Citations (not more than one page of the most current or critical ones)
• Management Team Resumes
• Reprints of any relevant articles  (articles from trade journals or local business press that support your claims about the potential success of this type of business)

Administrative Considerations
(Name of the business should reflect the major thrust of the business or be distinctive in some way, business plan should be printed and bound, copies of the plan should be controlled and distribution recorded--number each copy and get a confidentiality agreement from each person to whom you give a copy of the plan that shows the number of the copy on it)

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Copyright 1997 by Kaye Vivian (kvivian@cloud9.net).  All rights reserved. 
Permission to reprint is granted so long as the copyright notice remains attached and the text is not altered.

Page last updated: January 4, 1999