The Importance of a Business Plan in Local Startups

Most young entrepreneurs look up to startups with a fairy tale scenario but the reality, on the other hand is very different. It takes a lot of practical work and solid business strategies to make things work. Read more for details.  

A majority of young and ambitious entrepreneurs just plunge to the practical world with their innovative ideas and determination, but even after working hard and investing their maximum energy, they fail to sustain their project – or to collaborate with other partners for growth. But why is that you fail when you are dedicated to give the most? The simple answer is that most of young entrepreneurs look up to startups with a fairy tale scenario – thinking the uniqueness of their ideas and cutting-edge technology would suffice all. The reality, on the other hand, is infact tough and rational. The most important cause of failure in such startups is lack of planning and a financial business model. 

It is pretty useless, in terms of stability of a tech-venture to be taken forward without a well thought out business plan. The ideas indeed are great – we have witnessed the remarkable growth of local IT market in the past year – but at the end of the day, a mature business plan is an essential ingredient for growth and stability of a business. However, why is that  you feel the need of a business plan in Pakistan?

Government Infrastructure and IT Market in Pakistan

  • Pakistan has recently experienced a change of trends in business and marketing with discreet but constant boom in local IT market. There are several loopholes in government infrastructure which requires fresh startups to essentially need a proper business plan. 
  • Initially, every startup needs a reasonable profit for self-sustaining itself and grow. No matter how creative your idea is, if you are not prepared for it practically with a financial business plan, you fail to sell your services to the desired targeted audience. 
  • Top management in most of the organizations is till today not tech-savvy. If you are selling your services to bigger organizations, top management has to vote you, which is only possible when you are able to explain how your services are profitable for their business in terms of ROI, with statistics and facts. It cannot be conveyed otherwise properly.
  • It has been seen that most of the cyber security services face problems while dealing with top management of government as well as private organizations – because without a business plan the possible revenue, which can be saved, is hard to put in words. 

How Does a Business Plan Help?

A business plan usually comprises of the following major key points:

  • Research and Innovation

Research is an integral part of a business plan and a constant one. It also includes the potential prospects of the company in present day as well as its comparison with the future. 

  • Goals

For a profitable business plan, the goals should not be limited. Technology has made it global and the success rate now highly depends on whether or not your product meets global standards. Even when the applications are designed to solve a real life problem in a localized set-up, the features and services offered must encompass a broader range of consumers. Moreover, it is also very important that the services offered assure the provision of efficient services for the users while the objective of a business plan must achieve sustained growth and profitability. 

  • Market Analysis

Market analysis keeps your plan fine-tuned. It also allows you to sell your products easily when you have a grip over market’s current and future scenario. Practically, it is ideal to have your analysis with precise statistics instead of blind ideas that might prove to be risky later in a critical stage of your business growth. It allows you to filter your targets and enhance your services for market’s requirements. 

  • Competition

In modern business world, the competition never ends. Innovation and keeping pace with changing trends is what keeps a business alive. Pakistan has produced excellent products that have remarkably enhanced different sectors on a local level. But on a global level, the competition bar is quite high. Pakistani products still lack quality standards with precise perfection, when it comes to the global market. 

  • Financial Plan and Investors

This is very important both for the buyers as well as the sellers. The purpose of drafting a business model is to efficiently keep track of your strength, weaknesses and requirements for growth. With everything mentioned in clarity, it makes it easier to do business with other companies. Also, it is an effective way to brief your plans with precisions to new employees. 

For convincing investors to work with you, this is what plays a big role. It is relatively easy for companies to process details for making decisions accordingly when the information is conveyed properly. Investors do not take risks unless they see their own profits in making new investments. 

  • Work Strategy/Marketing

Finding and reaching out to your potential clients/users is what makes marketing as important in a business plan as finance. Your product is of no use without a smart marketing strategy. It’s useless even when you are targeting the wrong audience.  

The possibility of a business success revolves around these key-ingredients of a business model. It makes it easier to map the future along with strong business communication for growth and secure funding. The chances of making it big are quite vague when the financial aspect is dealt with properly.