The foundation

Have you had an idea buzzing around in your head for a while, but don't know how to get started? Then you've come to the right place.

A start-up starts with an idea. But to ensure that it doesn't remain just fiction, you need a plan. In this plan, you work out the idea, add milestones, cash flows, financing options, customer acquisition strategies and much more. This not only serves to convince potential investors, partners or (finally!) your mum of your idea, but should above all create clarity for you.

In this chapter, we list the most important points of a business plan. Of course, the points can also be dealt with in a different order. Please note that further information on most points can be found in the other chapters.

1. executive summary

This is at the very front of your business plan. Some people prefer to write the summary after all the other points have been dealt with - in other words, a summary. Other people use the summary to create a rough plan in advance and then flesh it out in more detail. Of course, there is no right or wrong way to do this, in the end the only important thing is that it is convincing.

In your executive summary, list your company name, the founding team, your products or services and the market you are entering. You should also mention the most important milestones and your strategy for achieving them. Go into detail about your financial plan and explain who your investors will be, how much capital you will need and when you are planning to make a "" (financial plan).

Elevator pitches can be inspiring - where people present their business idea in just a few minutes. This is exactly what your executive summary is for: it should convince readers to take a closer look at your business plan.

2. company description

This is where you specify your company. You could start with a list of basic information, such as the registered company name, company address, managing director and key employees. List the shares held by each person. Qualifications should also be listed. Go into the founding history, for example how the idea came about and what steps were taken up to the writing of the business plan.

3. goals

When planning your company, it is important to set clear goals and milestones for the coming months and years. For example, investors want to see that a start-up not only needs money, but also has concrete plans for how it will use it to drive the company's growth. Typical milestones include

• The development of a Minimal Viable Product (MVP),
• Reaching a certain number of customers,
• The development of new markets or regions,
• The conclusion of partnerships or
• The conclusion of a further financing round.

The so-called SMART criteria (specific, measurable, achievable, relevant, time-bound) can be helpful in formulating meaningful goals.

Milestones show investors that the company is taking a structured approach and pursuing realistic growth targets. For the founders themselves, they provide orientation and make it easier to monitor progress. It is important to develop measures to achieve the individual milestones.

4. products and services

You have already described the cornerstones of your company. Now it's time to explain what you actually want to offer.

Explain whether and to what extent your products improve existing offerings or whether they represent a completely new offering. Refer to the competitor analysis (see next point), in which you describe in detail why previous solutions are not sufficient.

Mention what materials your products are made from and what this process looks like. Explain possible supply chains and environmental standards.

Don't skimp on visual aids - but they should be clear and purposeful. If you have patents, mention them.

5. market analysis

So far, readers know what your products or services look like. Now it's time to explain which market you're in and, above all, why! What problem do you want to solve?

Describe the market itself, for example its size, barriers, value chains and customers. Porter's Five Forces can serve as a guide.

Then explain why the market is interesting (this can be easily derived from the Five Forces, such as high margins, high customer loyalty, little supplier power, etc.).

Once the market has been characterized and the reader is convinced of its attractiveness, it's time to get down to business. Include an overview of the competition and a critical analysis of how you can differentiate yourself. This anticipates questions that investors in particular will have and shows that you have already thought ahead. You could also include this section as a standalone point to further emphasize your strategy.

It is important to establish the link between your product or service and the market. Explain briefly but precisely why you are needed. Base this on the market characteristics you have identified. For example: "As described, XYZ has so far been very inefficient and costly in the market. With my solution, the efficiency of XYZ can be increased by x% and thus save customers up to y% in costs."

In summary, this segment should convey the market in which you want to operate, how it is characterized and, above all, to what extent your products or services close an important gap or create a new need.

6. financial plan

Cash flows

In order to achieve your goals, you need a budget that plans your weekly, monthly and annual expenses. It is important to note that start-ups are often too optimistic in their sales forecasts and at the same time underestimate their expenses. So be honest with yourself and don't plan too tightly.

On the expenditure side, you will find both start-up costs (such as notary fees, commercial register entries, capital contribution account and possibly costs for legal advice) and ongoing operating costs for rent, personnel, production, marketing and sales. Think about how your costs would change with increasing sales.

Another important aspect is determining the capital requirements for investments. This includes major purchases such as machinery, software or technological infrastructure. As a rule, many young entrepreneurs underestimate their capital requirements, which can lead to liquidity problems later on. It is advisable to plan a buffer to cover unforeseen expenses.

Now that the cost side has been described, you need funds to cover them. At this point, you can mention funding you have already received or funds you have contributed. However, it is important that there is not only start-up capital, but also ongoing income. So develop a pricing model for your products and services and try to plan how the volumes could develop. Mention possible partnerships and other ways in which you can earn money.

Compare expenses and income for the next 12 months, for example, and show when you expect to break even (i.e. when income will cover expenses). Explain how you intend to achieve this.

Regular liquidity planning and cash flow forecasts help to identify bottlenecks at an early stage. Accounting and financial planning tools, such as Bexio, which were developed specifically for Swiss companies, can be very helpful in managing finances and liquidity.

If you are familiar with accounting, you can try to draw up a cash flow statement and a profit and loss account for the next 12 months to three years. In any case, the planning should show which cash flows and investments are expected and in what amounts.

Balance sheet

In addition to your income and expenditure, it is also important to plan what your company owns and what it owes. Anyone who is familiar with accounting will know that this involves drawing up a balance sheet.

But even if you're not familiar with it, it's helpful to think about what your balance sheet might look like at the beginning and, for example, after 12 months. On the assets side, this includes existing cash, property values, equipment and machinery, office furnishings, inventory, patents, vehicles and software licenses. On the liabilities side, for example, there is equity, loans, debts to suppliers, wages and taxes to be paid. Don't let this unsettle you! At the beginning, you probably have very few items, so you can simply summarize what you have. You don't need to write an extra balance sheet for this.

However, if you are unsure, it is advisable to seek advice from a tax office.

7. marketing and sales plan

This section is about explaining how you want to get your business off the ground: Who are your customers (target group), how do you reach them and, most importantly, how can they be convinced of your product?

Once you have identified your clientele, it is worth defining goals. These can include brand awareness, leads and sales figures. Remember the SMART criteria here.

The goals have been set. Now it's time to achieve them. How do you want your brand to be perceived? What key message do you want to get across to your customers? Which channels do you choose (digital marketing vs. traditional marketing)? What promotions can you offer?

On the sales side, there should be points such as the customer journey and sales funnel. You should also decide which methods you will choose. For example, you can mention here whether you are going B2B (business to business) or B2C (business to customer). This also includes any online store or sales lines in stores.

Pay attention to your budget and include expenses in your financial plan. You can also consider suitable tools for monitoring your success. These can be helpful:

• Customer Relationship Management Tools (CRM), for example Salesforce, HubSpot, or Zoho CRM
• Google Analytics: Tracks the traffic on your website and analyzes consumer behavior. This reflects how successful your marketing efforts are.
• Email marketing tools such as Mailchimp, Constant Contact, and Sendinblue. These help you to evaluate how successful campaigns via email are.
• Social media analytics, such as Hootsuite, Buffer and Sprout Social. These measure engagement, reach and follower growth across various platforms.
• SEO tools, such as SEMrush, Ahrefs, Moz. These analyze your website SEO performance, give you a keyword ranking and measure traffic growth.