best tech startup business plan

Having a great business idea and having the willingness and ability to jump into the entrepreneurial or intrapreneurial journey are the stepping stones to a successful journey. Next, you will develop expertise on how to write a business plan for a tech startup step by step.

You may like to start a business venture on your own or start a new business initiative within the firm that you work for. Whatever the case may be; you need to start your journey by writing a tech startup business plan proposal.

Like they say, a job well begun is half done. So, knowing how to write a well thought out business plan wins half the battle for you.

You also need to follow the “Keep it Simple, Silly” doctrine and come up with a simple business plan. Following a step-by-step business plan template, in this case, helps.

Sounds interesting? Let’s start the journey.

How do you begin a tech startup business plan?

To begin a tech startup business plan, you need to ask yourself the following questions:

“What to do?” “How to do it?” “When to do it?” and ” Who will do it?”

These questions will help in starting to plan how to take your business idea to executable action. Planning will help you bridge the gap between where you are right now and where you want to reach, concerning your business idea.

What are the 5 elements of a tech startup business plan?

There is no sacrosanct format of a good business plan or a business plan pdf, and also the ingredients of a business plan proposal would depend on your experience in business and knowledge in that particular field. 

However, a good startup business plan consists of the following:

1. Your background 

In case you have partners, their background too

2. Description of the business idea

It should consist of Utility of the Product / Service and the Unique Selling Proposition, i.e., USP 

3. Production plan 

In case of a product, how would you produce the product, in case of a service, how will you deliver the service

4. Operational plan

How would you smoothly coordinate the day to day work, how would you ensure the desired quality, where would you set up your factory/office, at what price will you sell

5. Organizational plan

This contains details of how many people you will employ to produce or deliver the service, what your marketing set up will be, who will manage your accounting and liaison with the various stakeholders and authorities

6. Financial plan

Now we come to an essential part of your business plan, where you need to spend considerable time and effort. It is the Financial Plan .

Your financial plan should spell out the investment required for the business. Where would the funds come from, and when are the funds needed? How much cash is needed to carry on day to day operations?

This section would also describe the economic feasibility of the business. This would include the revenue forecast for the next year, or three years or even further. 

How do you write a one-page business plan for a tech startup?

You need an elaborate plan to be successful in your business. However, at the same time, you also need to keep in mind that the business plan is needed for the potential investor to consider investing in your business. 

Given the lack of time the potential investor has, you need to make a one-page business plan which has a concise description of your plans but gives details on why she/he should invest in your business. It should motivate the potential investor to spend time and read a more elaborate business plan.

The one-page business plan is also your means of communication with the external stakeholders like the government, the public at large when you need to do any statutory filing of information of the company or present in various conferences. 

You may also like to term this one-page plan as a written “elevator pitch.”

  You may like to start a business venture on your own or start a new business initiative within the firm that you work for. Whatever the case may be; you need to start your journey by writing a tech startup business plan proposal.

  Like they say, a job well begun is half done. So, knowing how to write a well thought out business plan wins half the battle for you.

  You also need to follow the “Keep it Simple, Silly” doctrine and come up with a simple business plan. Following a step-by-step business plan template, in this case, helps.

What does a tech startup business plan consist of?

A startup business plan consists of an internal roadmap elaborating on the most important aspects of your business (i.e., the background, the production, operational, organizational, and financial aspects). 

At the same time, it consists of the purpose, and the financial returns your business will generate, which acts as a written marketing document for external stakeholders.  

However, given the uncertainties in modern times, business plans are increasingly focusing on the risks, and the fall back plans that would be in place if the original plan fails.  

A significant point that gives confidence to the investor about the long term viability of the business plan is the interest that the target market will show in the product or service. So, it is worthwhile to add as a Business plan annexure pdf, any primary research done by a reputed marketing agency of the market potential of the product or service.

When the business plan involves a new product or service, it is effortless to fall into the trap of looking at the product from your point of view and taking the market for granted. What is required at this stage is to focus exclusively on how you conceptualized the idea and how you are planning to bring the concept to execution.

Researchers from MIT suggested successful business plan examples where users were invited to pre-test the products or services. Their feedback is of interest to the investor and needs to be included in your startup business plan.

8 Steps to Create a Business Plan for Your Tech Startup

Step 1: executive summary.

The first step in writing a startup business plan for your new tech business is to create an executive summary.

The executive summary doesn’t need to be lengthy and tedious; around two to three pages should suffice.

Although a short document, the executive summary one of the most important elements of your business plan.

Your executive summary should be concise and clear as it should be successful in communicating everything about your business.

Some investors might  only  ask for your executive summary — so be sure to craft it well and pepper it with all the right bits of information. you’ll want to ensure it can stand on its own.

Stick to the following:

1. Mission Statement:  In one crisp paragraph, explain the mission of your business and what you want to accomplish.

2. General Company Information:  Next, include general information like when your business was formed, the name of the other founders, their roles, the number of employees, office locations, and so on.

3. Visual Highlights:  Include graphs and charts pertaining to any key milestones of the business or any growth you’ve seen since starting the business.

4. Products and Services:  Without getting overly passionate or verbose, briefly describe your product, the technology that powers it, and your target customer base.

5. Financial Information:  If you’re looking for  startup fundraising , include your funding goals. You can also include any information on previous loans or about banks or lenders you’ve worked with before.

6. Future plans:  Don’t forget to include where you plan on taking your business in the future.

Pro tip: Write your executive summary after you’ve completed creating your business plan.

This way you’ll have all your facts in place and all your information and details sorted so you will be better equipped to summarize them.

Step 2: Company Overview

Many entrepreneurs confuse the company overview with the executive summary. However, there is a stark difference between the two.

The company overview is a more detailed top-level view of the structure of your tech business and what you do.

Here’s how you can go about drafting your startup overview:

1. Begin your company overview section by describing what your business specializes in and the technology behind it. This part of the company overview is intended to give readers and investors a general idea of your business.

2. Next, proceed to explain the nature of the industry and marketplace.

3. Lay out the legal structure of your business and provide the ownership structure.

Step 3: Market Analysis

The next step along the process of creating your startup business plan is to perform in-depth research and analysis of your niche, target market, and primary competitors.

This is the first part of your startup business plan where you dive into the details.

Your market analysis will give readers and investors enough proof about the level of understanding you have about the dynamics of your industry.

Your market analysis should include the following sections:

1. Industry Description:  Start by including a detailed view of your industry. How big is it? How much has it grown in the past few years? What are its growth predictions from industry experts? Who are your competitors? How have they performed? And so on.

2. Target Market Details:  Dive into the details of your target market . And include your target market’s characteristics and target market size and growth.

3. Your Market Share Potential:  Chart out what your market share could look like along with how much market share you expect to gain.

4. Market Pricing:  Include an estimated cost of your products and how you will distribute them.

5. Challenges:  Don’t shy away from including any challenges that you may across. This could be legal issues to shifting technologies to capital issues to lack of talented or skilled human resources.

6. Competitor Research:  Study your competitors by analyzing their strengths, market share, weaknesses, challenges they pose to you, and so on.

Step 4: Business Organization

This next section of your startup business plan provides insights and information on your tech business’s management structure clearly defining and explaining what everyone does.

You will also have to go a step further to include everyone’s business background and past experiences.

Here’s what you need to break down:

1. Organizational Structure: Start this section by creating an organizational chart that depicts how your business is structured.

2. Ownership Structure:  Although you’ll repeat this information in your company overview, you have the liberty to go in-depth allowing you to talk about the ownership structure of your company, who owns how much, and so on.

3. Background of Owners:  Categorically explain the background of your team. This includes information on directors, senior management members, and managers.

4. Talent Requirement:  Clearly make a list of all hiring needs.

Step 5: Products and Services

This section of your startup business plan is all about laying out the details and plans for positioning your product, the utility it provides, the technology behind it, and so on.

For instance, if you are offering Internet of Things (IoT) based solutions or Artificial Intelligence-powered services, then give details about how these products work and how you wish to promote and sell it.

Here’s exactly what this section should include:

1. General Description:  Highlight the USP of your product or service and the value it provides to potential customers.

2. Status of products:  Paint an honest picture of the status of your product. Is your product in the idea stage? Is it already selling? Or is it ready to go to market?

3. Product goals:  If you are still in the ideation phase, map out a journey that talks about how you plan to launch the product and bring it to life. Include details on the research and development activities required. You can also include new versions or new products or any new features you wish to include in the future.

4. Intellectual property:  As a tech business, it is imperative to have proprietary intellectual property . Make mention of this and any other patent or trademark that you own or are in the process of owning.

5. Sourcing and fulfillment:  If you are dependent on third-party vendors to fulfill or your product or service creation, mention it here.

This section is crucial for your startup business plan as it defines everything about your products and services.

It will work as a bible for product managers and for you in the development stages and go to market phase.

Step 6: Marketing and Sales Plan

Once you’ve explained everything about your product, it’s time to delve into explaining how you are going to go about marketing and selling your product or service.

When it comes to marketing, this is what this section should look like:

1. Positioning:  This first part of your marketing plan should talk about how you’re positioning your business and products. What price bracket are you targeting? Are you offering any free service? What guarantees and warranties are you offering? Answering these questions and more will help you determine where you are positioning your products and services.

2. Promotion:  This part involves explaining marketing channels and plans you have for advertising your product, PR strategies, SEO plans, content marketing practices, social media marketing, etc.

Next, your sales plan:

1. Salesforce:  How do you plan to sell your product? Do you need a sales force? How big a team do you need? Who will train your sales team? These parameters need to be addressed in your sales plan.

2. Selling strategy:  Give an overview of how you will sell your product or service. Define the process you will follow as a technology business. Will you start with cold-calling potential customers? Or attending events? Or appointing channel partners? Clearly describe what your sales funnel should look like.

Step 7: Financial Plan and Projections

This is a supremely important section of your business plan.

Investors and VCs will want to look at your financial plans and projections before parting with their money.

Ideally, this section uses financial data from past performances or forecasts.

Include the following as part of your financial plan:

1. Income statements

2. Cash flow statements

3. Balance sheets

Additionally, if applicable, include the accounts of receivable statements, accounts of payable statements, and details or documents of debts.

Ideally, your financial projections should be supported either by past performances or future projections and estimations.

Include statements of projected income, cash flow forecasts, forecasted balance statements, capital expenditure budgets, and miscellaneous expenses.

Your startup business plan should include projections for the first year of business but should include a vision for the coming 3 to 5 years.

Step 8: Appendix

The appendix should be included towards the end of your business plan. This section includes all additional information that you didn’t include in the sections above of your business plan.

Any data, statistics, strategic points, charts, footnotes, or further explanations that you think are necessary to be included as part of your startup business plan but has been skipped should be included here.

As an entrepreneur or founder, you can also consider including your own resume and resumes of other founders or senior management team members.

Ideally, the appendix should begin with a table of contents that categorically breaks down your business plan into relevant, followed by the additional information that corresponds to each section.

199 Resources for Startup Business Plan Templates, Business Plan Examples, and Business Plan Samples

Final Thoughts

Although creating a startup business plan seems daunting and arduous, when you break it down into a step by step process, it gets easy to create one.

And with these 8 steps, you can create a killer tech business plan for your tech startup that will help you catapult to success and leave investors mesmerized.

Starting a tech business? Build it on a .tech domain! 

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Technology Business Plan Template

Written by Dave Lavinsky

Technology Business Plan

You’ve come to the right place to create your own Technology business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Technology businesses.

Technology Business Plan Example & Template

Below is a Technology business plan template and sample to help you create each section of your own business plan.

Executive Summary

Business overview.

Kearney Tech Inc., located in Houston, Texas is a tech startup that focuses on developing and commercializing new artificial intelligence (AI) technology applications designed for small-to-medium sized businesses. The company has created proprietary technology that helps businesses improve their profitability by using AI to increase customer engagement. We offer multiple products, including AI hardware, marketing AI software, and CRM AI software. Many of our most basic services are free, but the rest can be accessed by paying a subscription fee. By providing flexible and affordable subscription options for our clients, Kearney Tech Inc. aims to be the next big technology company in the AI space for small and medium-sized businesses.

Kearney Tech Inc. was founded and is led by Abigail Kearney. Abigail has been a senior software engineer for nearly 10 years and has extensive experience in artificial intelligence and machine learning. In addition to her experience, she has a bachelor’s degree in computer science and an MBA. Her education and experience are sure to lead Kearney Tech Inc. to success.

Product Offering

Kearney Tech Inc. will showcase a variety of different applications for its AI technology that companies can utilize to increase their customer engagement from day one. Businesses can choose the platform package that works for them, based on a freemium subscription pricing structure.

The following are the services that Kearney Tech Inc. will provide:

• AI Hardware
• Marketing AI Software
• Customer Relationship Management AI Software
• Customer Support AI Software
• Technology Training: Training sessions on how to use our AI solutions and integrate them into their businesses

Customer Focus

Kearney Tech Inc. will serve small to medium-sized businesses within a 30-mile radius of Houston, Texas. Many of the businesses in our target demographic are startups looking to expand their reach and thus would benefit from technology that can increase their customer base.

Management Team

Kearney Tech Inc. will also employ an experienced assistant to work as a business analyst and help with various administrative duties around the office. She will also hire several developers, salesmen, and other administrative staff to assist her.

Success Factors

Kearney Tech Inc. will be able to achieve success by offering the following competitive advantages:

• Management: Abigail Kearney has been extremely successful working in the technology industry and will be able to use her previous experience to provide the best service experience. Her unique qualifications will serve customers in a much more sophisticated manner than Kearney Tech Inc.’s competitors.
• Relationships: Abigail Kearney knows many of the local leaders, business managers, and other influencers within Houston, Texas. With her 10 years of experience and good relationships with business leaders in the area, she will be able to develop an initial client base.
• Proprietary technology : The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.
• Client-oriented service: Kearney Tech Inc. will have full-time customer service and sales managers to keep in contact with clients and answer their everyday questions.

Financial Highlights

Kearney Tech Inc. is seeking a total funding of $400,000 of debt capital to open its office. The funding will be dedicated to office design, software development, marketing, and working capital. Specifically, these funds will be used as follows:

• Office design/build: $50,000
• Software development: $150,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $25,000
• Working capital: $25,000

The following graph below outlines the pro forma financial projections for Kearney Tech Inc.:

Company Overview

Who is kearney tech inc..

Abigail began researching what it would take to create her own technology company and did a thorough analysis of the costs, market, demographics, and competition. Abigail has compiled enough information to develop her business plan in order to approach investors.

Kearney Tech Inc.’s History

Once her market analysis was complete, Abigail Kearney began surveying the local vacant office space and located an ideal location to house the technology company. Abigail Kearney incorporated Kearney Tech Inc. as a Limited Liability Corporation in April 2023.

Since incorporation, the company has achieved the following milestones:

• Located available office space for rent
• Developed the company’s name, logo, and website
• Determined equipment and necessary supplies
• Began recruiting key employees

Kearney Tech Inc. Services

Industry analysis.

As of 2021, the global technology industry was valued at approximately $5.2T. Of all countries worldwide, the United States currently has the largest technology market, with 32% of the market share at $1.7T. The technology industry in the U.S. accounts for a large part of the nation’s economy.

The Information Technology market can be segmented by categories such as software, devices, infrastructure IT and business services, emerging technology, and telecom services. In the United States, IT and business services hold the greatest market share (30%), followed by software (20%) and telecom services (20%).

Market drivers include the economy, employment rates, and the digital transformation of daily life for a growing number of people and businesses worldwide. Corporations and organizations are seeking IT service providers that can help improve their software, cybersecurity, data, and infrastructure. Technology companies that can provide products and services that cater to these issues can be competitive in the constantly evolving market.

Technology is an integral part of society. Developments in AI and machine learning are essential to keep society moving forward and make businesses more efficient. Therefore, businesses will always be in need of AI solutions to bring in more customers and streamline their services and products. According to Market Watch, the Technology industry is set to grow at a CAGR of 25.73% from now until 2027. Very few industries see this growth, which shows how much demand there is for technological solutions. Therefore, we expect Kearney Tech Inc. to see great success in our local market.

Customer Analysis

Demographic profile of target market.

Kearney Tech Inc. will serve the small and medium-sized businesses of Houston, Texas, and the surrounding areas.

Many small businesses in the community are startups or established enterprises looking to expand their reach and thus would benefit from technology that can increase their customer engagement.

Customer Segmentation

Kearney Tech Inc. will primarily target the following customer profiles:

• Small businesses
• Medium-sized businesses

Competitive Analysis

Direct and indirect competitors.

Kearney Tech Inc. will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Tekuserv has been a reliable technology company in Houston, Texas for more than fifteen years. The company is known for its wide range of technology solutions that serve many small-to-medium-sized businesses. With its large number of experts focused on delivering customer satisfaction, the organization maintains its high standard of developing quality products and providing exceptional customer service. Tekuserv provides business software on a freemium subscription basis. It develops enterprise technology solutions with a focus on customer relationship management.  

Prime AI Business Solutions

Prime AI Business Solutions is a technology development company in Houston, Texas. In business for several years, the company has developed highly-rated AI solutions used by many well-known businesses in a variety of industries. Prime AI Business Solutions now offers a range of AI hardware and software products geared toward helping businesses of all sizes increase their customer base. The company has also introduced a “pay-as-you-grow” pricing model that scales to provide users with more support as they scale up.  

AICE Developments

AICE stands for Artificial Intelligence for Customer Engagement. AICE Developments is also a local technology company that manufactures and distributes a variety of technology products. AICE Developments was established in 2009 in Houston, Texas, providing integrated AI applications and platform services. Its products include applications and infrastructure offerings delivered through various IT deployment models, including on-premise deployments, cloud-based deployments, and hybrid deployments. The company serves automotive, financial services, healthcare, hospitality, retail, utilities, construction, etc. It provides AI solutions for enterprise marketing and customer engagement.

Competitive Advantage

Kearney Tech Inc. will be able to offer the following advantages over the competition:

• Proprietary technology: The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.

Marketing Plan

Brand & value proposition.

Kearney Tech Inc. will offer a unique value proposition to its clientele:

• Service built on long-term relationships
• Big-firm expertise in a small-firm environment
• Thorough knowledge of the clients and their varying needs
• Proprietary technology developed by skilled software engineers

Promotions Strategy

The promotions strategy for Kearney Tech Inc. is as follows:

Kearney Tech Inc. understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Kearney Tech Inc. will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

Kearney Tech Inc. will invest heavily in developing a professional website that displays all of the features and benefits of the technology company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Direct Mail

Kearney Tech Inc. will blanket businesses with direct mail pieces. These pieces will provide general information on Kearney Tech Inc., offer discounts, and/or provide other incentives for companies to use the AI platform.

Kearney Tech Inc.’s pricing will be on par with competitors so clients feel they receive great value when purchasing the technology.

Operations Plan

The following will be the operations plan for Kearney Tech Inc.:

Operation Functions:

• Abigail Kearney will be the Owner and CEO of the company. She will oversee all the operations and executive functions of the company. In the beginning, she will also provide customer support and market/sell AI products to potential clients.
• Abigail will employ an experienced assistant to work as a business analyst and help with various administrative duties around the office.
• Abigail will also hire several developers to maintain and develop AI products and services.
• Abigail will also hire a solid sales team to sell our products to potential clients. As the company grows, she will also hire a team that is solely dedicated to customer service.

Milestones:

Kearney Tech Inc. will have the following milestones completed in the next six months.

5/2023 – Finalize lease agreement

6/2023 – Design and build out Kearney Tech Inc.

7/2023 – Hire and train initial staff

8/2023 – Kickoff of promotional campaign

9/2023 – Launch Kearney Tech Inc.

10/2023 – Reach break-even

Financial Plan

Key revenue & costs.

Kearney Tech Inc.’s revenues will come primarily from its technology solution subscription sales. The company will use a freemium subscription model, in which basic functions can be used by any company for free. Additional solutions and support will be available in a tiered package model based on the enterprises’ size and the number of users.

The office lease, equipment, supplies, and labor expenses will be the key cost drivers of Kearney Tech Inc. Ongoing marketing expenditures are also notable cost drivers for Kearney Tech Inc.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average number of clients per month
• Annual rent: $20,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Technology Business Plan FAQs

What is a technology business plan.

A technology business plan is a plan to start and/or grow your technology business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Technology business plan using our Technology Business Plan Template here .

What are the Main Types of Technology Businesses?

There are a number of different kinds of technology businesses, some examples include: Network technology, Software technology, and Customer relationship technology.

How Do You Get Funding for Your Technology Business Plan?

Technology businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Technology Business?

Starting a technology business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Technology Business Plan - The first step in starting a business is to create a detailed technology business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your technology business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your technology business is in compliance with local laws.

3. Register Your Technology Business - Once you have chosen a legal structure, the next step is to register your technology business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your technology business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Technology Equipment & Supplies - In order to start your technology business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your technology business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful Technology business: How to Start a Tech Company

How to Write a Tech Startup Business Plan to Win Investors

You have a great business idea. Now you’re doing the hard part: raising capital.

With a failure rate of 63% in the tech startup industry, you need to have a highly compelling business idea and go-to-market strategy to win over investors.

We’re going to make writing a startup business plan really simple by providing you with a step-by-step guide along with a business plan template you can use to build startup business plan that wins investors.

What is a tech startup business plan?

Why do you need a technology startup business plan.

• 1. Executive summary
• 2. Market opportunity
• 3. Product or service overview
• 4. Marketing and sales strategy
• 5. Team and management structure
• 6. Key milestones
• 7. Financial plan

Sample tech startup business plan [template]

A technology startup business plan is a document that is used to outline the goals, strategies, and objectives of a new tech startup business. This document is often used to secure funding from investors and to help the business leaders form a unified sense of identity and purpose.

The business plan should include information on the products or services offered by the startup, the market opportunity, the business model, the team, the financial projections, and the risks and challenges associated with the business. A tech startup’s business plan should generally address three major areas of the business:

As a startup moves through various stages of growth, the business plan should be updated with new information and forward-looking goals. In this way it can serve as a “source of truth” for all of the startup’s stakeholders.

A business plan is an essential tool for any tech startup. It provides a road map for your business, helping you to define and communicate the company’s vision, goals, and strategies. Having a singular document that acts as a single source of truth for the business will help to keep the startup’s core leadership team unified and provides guidance on how to navigate the often-complex world of starting and growing a business.

You can utilize your startup business plan to secure funding and partnerships. A well-crafted business plan can also help you attract and retain top talent.

In summary, you need a technology startup business plan to:

• Unify the startup’s leadership team
• Secure funding and partnerships
• Attract top talent
• Act as a guide for navigating starting a business

This article will act as a guide for writing a business plan for tech startup founders.

7 key components of tech startup business plan

You know you need a business plan for your tech startup. You know generally what should be included. But, now you need to actually get to writing. We’re going to try to make this as easy as possible by outlining the 7 key components your technology startup business plan should have.

If you’re looking for a real shortcut, make sure you download our easy tech startup business plan template. Included in it you’ll find a sample business plan and an outline of what we’ll cover below.

Stick with me if you’re looking for a more detailed explanation of each of the 7 components.

• Executive summary

First up is an executive summary. This brief section should provide some context to readers as they begin to read your business plan. It’s your opportunity to share, at a high level, your business idea.

At a minimum, this section should outline what your business is, the general market you target or industry you are in, and what your products or services are. Optionally, you can include some information about your business’s history, bios of key members of your leadership team, competitive advantages, key customer benefits, and your company’s goals. How detailed you get with this section is up to you. Use this as an opportunity to provide an overview before you get into more detail in the other sections of your business plan.

• Market opportunity

This is where you will start to go into more detail about your business. Starting with the market opportunity allows you to paint the picture of the why _behind your tech startup before you go into the _what . Ultimately, you can only sell the feasibility of your business by backing it up data on who your potential customers will be. This section will help to inform the marketing strategy and sales plan later in the startup business plan document.

Take the time in this section to walk through the research you have done on your audience. To start, you should have data points on the following:

• Demographic data for your target market (age, gender, income, occupation, location)
• Main pain points of your target market
• Values and interests of your target market
• Needs and wants of your target market

It can also be compelling to provide some information on how your products or services will stand out from the competition. Consider answering the following questions in this section:

• Who are your main competitors?
• How will your products or services meet the market’s needs better than the competitors?
• Will your products or services be able to reach a currently unreached audience?
• How will you differentiate yourself from the competition within your target market?

All of this data should back up what the real market opportunity is for your business. Make sure this market opportunity is realistic and achievable. This should lead well into our next section which will cover in more detail the products or services your tech startup will offer to the market.

• Product or service overview

After you have outlined the market opportunity your business will take advantage of, it’s time to provide more details on the exact products or services that you will offer to your market.

Each product or service you include in this section should have a corresponding functional and technical description. The functional description should aim to outline to a layperson what the product or service is, what it does, and how it will be used. The technical description should outline the technologies each product or service utilizes or what technology has been developed specifically for the new business. It’s appropriate to go into detail here to give potential investors more confidence in your product or service.

It’s also important to include information on how the products or services will ultimately benefit customers and what problem they will solve for customers. If you have more than one product or service, make sure to outline this information for each one.

• Marketing and sales strategy

The marketing and sales strategy section of a technology startup business plan should include a description of the target market, the company's marketing and sales objectives, the strategies and tactics that will be used to reach these objectives, the key marketing and sales metrics that will be used to measure progress, and the budget for marketing and sales activities. In short, it should outline your business’s marketing and sales plan.

Starting with the objectives, you should outline specifically what you are trying to achieve with your marketing and sales efforts both in the short term (likely for launch) and long term. Each of your objectives should align with your overarching business goals and make sense for the market you outlined earlier in your business plan. Be realistic here. It’s better to estimate low and over deliver than to overestimate your success.

As you outline the strategies and tactics you will use to achieve your objectives, consider both the what _and the who_:

• (What) What tactics will you employ to achieve your goals?
• (What) What marketing tools do you need to achieve your goals?
• (What) What marketing channels will you use?
• (Who) Will the marketing work be done internally?
• (Who) Will you hire freelancers or a CMO to help implement the work at hand?
• (Who) Will you need a sales team right away?
• (Who) How will marketing and sales work together to achieve your goals?

Your marketing and sales strategy should be backed up by the market opportunity information you provided earlier. The strategies and tactics should be aiming to reach your target market.

Next, outline the metrics that will be used to measure marketing and sales progress. You should include specifically when these metrics will be measured and who will be held accountable for them.

Finally, include a marketing and sales budget in this section. The budget should be broken down by channel and tactic, so that dollars can be accurately tracked and attributed to results.

• Team and management structure

Up next is the team and management structure part of the business plan. To start, provide an overview of the startup’s organizational and management structure. Providing a graphical representation of the reporting structure can be helpful.

This can then lead into an overview of who owns or manages each of the key sectors of the business (CEO, CTO, CMO, etc.). It’s a good practice to provide a bio of each of the members of the leadership team, including their education, work history, and relevant expertise. Along with their bio, provide a description of their role and responsibilities within the organization.

After you have covered the leadership team, outline the other team members along with their roles and responsibilities. Following this, include some commentary on the team’s strengths and weaknesses as well as what gaps remain within the organization. If additional staffing is required, provide a hiring plan that includes a description of the role, salary, and strategy for recruitment.

End this section with an overview of the organization’s values. Paint a picture of what it’s really like to work for your company and how you build a sense of ownership and responsibility within the team. Highlight how you intend for the team to work together to accomplish the company’s goals.

• Key milestones

At this point in the business plan you have outlined the target market, products and services you will offer as well as the members of your team that will bring the company’s vision to life. In this section you’ll provide a timeline of the past and future milestones for your business. This will help to illustrate your startup’s growth path and how you intend to move forward.

Some key milestones to consider when writing this section:

• When business was founded.
• When the business was/will be launched publicly.
• When the business was/will be profitable.
• When the business reached/will reach funding milestones.
• When development project milestones were/will be reached.
• When marketing milestones were/will be reached.
• When key staff were/will be hired.
• Future product release dates.

You might consider showcasing this information in the form of a graphic like this:

In addition to a company timeline, we recommend you include additional data in this section such as:

• Current number of employees and the number of employees projected in the future.
• The amount of revenue generated in the past and projected for the future
• Key clients or contracts that have been signed or that are in the works.

This section should clearly demonstrate your startup’s ability to grow from an idea into a business. Providing concrete dates and real data in this section will provide some validity to your startup and showcase what you’re able to accomplish.

• Financial plan

The final section of your technology startup business plan should be a financial plan. This is the section of the business plan that outlines how the business has been funded to date and how it will be financed moving forward.

There is no one way to write the financial plan section of a business plan, as the amount and type of information that needs to be included will vary depending on the business and the specific financial goals of the plan.

However, there are some basic elements that should be included in most financial plans. These include a pro forma income statement, balance sheet, sales forecast, and cash flow statement. The pro forma financial statements should be based on historical financial data, if available, and should include assumptions about future revenue and expenses. The financial plan should also include a discussion of the company's capital structure, including its debt and equity financing.

If you’re at a very early stage with your startup and seeking a modest amount of funding, it’s probably sufficient to air on the side of brevity. If you’re seeking series A, B, or C funding, you’ll likely need a very comprehensive financial summary along with a detailed plan on how the funding will be utilized to grow the business. Seek counsel from a business accountant if you’re unsure of how to provide adequate financial documentation.

We have walked through the 7 key elements of any tech startup business plan. Now we’re going to share a sample business plan template to help you get started with writing your own!

Innovation is critical to success in the software industry. The executive team of this startup believes they have the next big thing. They have developed a new software application that helps businesses manage their social media accounts more effectively. The software provides insights on when to post, what to post, and how to engage with customers. The software also allows businesses to track their social media analytics and see the return on investment for their social media campaigns.

The executive team has extensive experience in the software industry and believes this new product has the potential to be a game-changer for businesses. The team is seeking $1 million in seed funding to help with product development, marketing, and sales. The company plans to generate revenue through monthly subscription fees and by selling data analytics services to businesses.

The social media management software market is expected to grow from $9.3 billion in 2020 to $17.4 billion by 2025, at a compound annual growth rate (CAGR) of 13.2%. This growth is being driven by the increasing use of social media by businesses of all sizes and the need to effectively manage social media accounts to drive brand awareness and customer engagement.

The software application developed by the startup helps businesses manage their social media accounts more effectively. The software provides insights on when to post, what to post, and how to engage with customers. The software also allows businesses to track their social media analytics and see the return on investment for their social media campaigns.

The software is available on a monthly subscription basis and businesses can also purchase data analytics services to help them further understand their social media campaigns.

The company plans to generate awareness for the software through online and offline marketing campaigns. The team will target small businesses and medium businesses that are active on social media but do not have the resources to effectively manage their accounts.

The company will use a mix of paid and organic marketing to reach its target audience. For paid marketing, the company will use Google AdWords and Facebook Ads. For organic marketing, the company will use content marketing and social media outreach.

The company plans to sell the software on a monthly subscription basis. The team will offer a free trial to businesses to get them started with the software. Once the free trial expires, businesses will be charged a monthly subscription fee.

The executive team of the startup consists of experienced software professionals. The team has a proven track record of developing and marketing successful software products.

The company plans to hire a sales and marketing team to help generate awareness and drive sales of the software. The team will be based in the United States and will consist of sales and marketing professionals with experience in the software industry.

The company plans to achieve the following milestones over the next 12 months:

• Launch the software application
• Generate 500 paying customers
• Achieve $1 million in annual revenue

The company is seeking $1 million in seed funding to help with product development, marketing, and sales. The company plans to generate revenue through monthly subscription fees and by selling data analytics services to businesses.

The company projects the following financials for the next 12 months:

• Revenue: $1 million
• Expenses: $500,000
• Profit: $500,000

As a startup founder you know that having a software startup business plan on hand is critical to win over investors and get your business funded. However, no one wants to spend days writing a complicated it startup business plan. It’s much more important to focus on the day-to-day operation associated with building your tech startup.

To help save you time (but still create a winning startup business plan), we’ve outlined the 7 key components of any tech startup business plan:

As you tackle writing your own, make sure you refer back to this guide along with our template to ensure you’re writing a compelling business plan that is sure to win over investors!

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7 Elements to Successfully Write a Tech Startup Business Plan

Vy Le | 18/05/2023

When it comes to starting a tech business, having a well-crafted tech business plan is crucial to attract investors and succeed in the competitive market landscape. A business plan outlines your company’s vision, strategy, and financial plan over time, giving potential investors insight into your business model and growth potential.

However, writing a tech startup business plan can be a daunting task, especially for new entrepreneurs that lack experience in the tech industry. In this article, we’ll provide you with a comprehensive guide on writing a tech startup business plan that will impress investors and help you succeed in the fast-paced tech startup world.

What is a Tech Startup Business Plan?

A tech startup business plan is a comprehensive document that outlines the goals, objectives, and strategies of a technology-based startup company. It is a crucial tool that helps entrepreneurs in the tech industry to define and organize their ideas, demonstrate the feasibility of their business concept, and present a clear plan for how they intend to build and grow their company.

Generally, most business plans typically include a summary of the company history, the problem it is solving, the target audience, competitive analysis, the marketing and sales strategy, the development strategy, and the financial plan. Also, such a document may include details about the management team, operations, and product development roadmap.

Particularly for the technology sector, the tech startup business plan also includes more specialized elements. Specifically, it is important to focus on the e-commerce technology trends being developed and how it addresses a gap or problem in the market while building such a document. This includes details such as the software or hardware being constructed, the technology stack being used, its technical architecture, and how it will improve or disrupt existing technology solutions.

Overall, a well-crafted business plan can help secure funding from potential investors or lenders, attract top talent, and ultimately guide the company toward success.

10 Core Questions to Answer When Conducting a Tech Startup Business Plan

For a tech startup business to build a good business plan, keep in your mind these questions and find the answers for yourself along the way. Answering these questions will help your startup team formulate a clear and compelling business plan/business idea, which can be used to guide the tech startup founder toward success.

1. Which product or service does your tech startup offer?

2. What is the team structure, and who are the key members?

3. Who is your target audience for the product or service?

4. Who are the competitors?

5. What are your competitive advantages?

6. What is your marketing strategy, and how do you leverage marketing channels?

7. What is your sales plan, and how do you leverage sales channels?

8. What is your financial plan, including projections for revenue, expenses, and funding needed?

9. What are the risks and challenges the business may face?

10. What is your timeline for product development, launch, and growth?

3 Reasons Why You Need a Technology Startup Business Plan

But why do businesses compose a tech startup business plan at the beginning of the software development process? There must be reasons. Check them out now!

Providing a Blueprint for Success

According to a Harvard Business Review study , startups that write a detailed business plan have a 16% chance to achieve viability than businesses that don’t. This metric proves the usefulness of this action.

By systematizing the business idea into a complete tech startup business plan, you give the business itself and each team member a clear picture of the company’s goals, vision, and strategies. While people are a prerequisite for an organization’s success, understanding the product’s direction will help each individual in the development team structure closely link together throughout the software development process and shorten product completion time.

Raising Capital from Investors

In the tech industry, startups often require significant amounts of capital to fund product development, hire staff, and invest in marketing and sales efforts. Raising such funds from investors is often necessary for startups’ future growth and success.

However, among the hundreds of thousands of startups out there, what sets your business apart from all of them? It is a specific technology startup business plan that is well-written to demonstrate.

Prospective investors and venture capitalists do not spend their money arbitrarily on poorly invested projects because, ultimately, they care about the return on investment (ROI). Investors are usually drawn to companies that understand their market and have a plan to tackle the market gap, and a well-curated business plan can make a tech startup stand out from the crowd.

Attract Top Talent

Suppose you don’t intend to use outsourced software development services to quickly build a development team of professionals and want to recruit developers for your startup yourself . A tech startup business plan can help in this situation.

A technology startup business plan can showcase the unique features of the business and its competitive advantage in a crowded market. Therefore, it can become a valuable tool for convincing top talent to join the team, especially if the company’s plans align with professionals’ aspirations and career goals.

7 Essential Elements to Write a Business Plan for Your Tech Startup

Your business idea can be good. But to easily realize it and stick to the outlined roadmap, you must present them in a systematic document. To do this, don’t skip the seven key elements to conduct a tech startup business plan below.

Executive Summary

The executive summary is the most critical component of a tech startup business plan as it gives the reader a first-hand look at your product/service. An executive summary is a brief overview of your entire tech startup business plan, providing context for the reader and summarizing all the key points. It is usually the first section of the business plan and is customized to reflect the company’s goals, values, and unique selling points in a way that inspires the reader’s confidence in the startup.

An excellent executive summary in a software startup business plan typically includes the general situation of the target market or related industry based on conducted market research and an overview of the software solution you offer. Other information, such as unique value proposition (UVP), competitors in the same segment, and the company’s goal, can also be included in the executive summary as an optional option.

The advice is not to write the executive summary too long and vague, lacking focus on the main ideas. It is recommended to keep it within two pages to optimize visual efficiency and avoid boring the reader. Use the executive summary as an opportunity to showcase your tech startup’s strengths before diving into the details later on.

Company Description

If the executive summary is the section that presents all the overview data about your product or service, the company description in a technology startup business plan is the part that gives the reader a clearer view of your entire tech startup, or what we call a company overview.

This section should provide a clear understanding of the business to potential partners or customers and inspire confidence in the startup . There are many primary elements that make up a complete company description. So, it will be hard if tech startup founders don’t start small. Draft fundamental ideas and gradually develop them into complete content until they meet all the needs of a business plan.

Here are some main elements to consider when writing a company description: tech company’s name, company history, business model, vision, mission, legal structure (whether it is a sole proprietorship, partnership, LLC, or corporation.), management team structure (each role and responsibilities) and competitive advantage.

Target Market Research

By doing target market research, a tech startup is able to figure out three key elements for a tech startup’s business plan. These are the total addressable market (TAM), technology market trends, target customer groups, and competitor analysis.

• The total addressable market (TAM) is the target market’s total size that helps assess potential future revenue streams and justify the business case.
• Market trends help tech startups stay up to date with market demand, ever-changing information technology, and changes in perspective customers’ behavior.
• Target audience gives tech startups a better understanding of their potential customers by gathering demographic, geographic, and behavior factors.
• The competitor analysis section of your business plan helps tech company in identifying their direct competitors and understand their own strengths and weaknesses to promote competitive advantage better.

Target market research not only benefits the startup company but also shows your investment and determination in the product or service.

Product/Service Line

It’s time to be more descriptive of the product or service your company offers rather than just general, like in the executive summary. Because the purpose of a startup business plan is generally still to introduce products to potential customers, this section should be written carefully and go into detail to demonstrate the product’s uniqueness and promising growth potentials.

Some elements to consider when writing a business plan include:

• Product or service explanation: This includes key features and benefits, how it works, and how it is different from other solutions in the market.
• Value proposition: Clearly stating how your product fulfills a customer need and backing it up with evidence.
• Product development: Providing a product development roadmap by outlining your timeline and steps to achieve further development goals.

Team Structure

The team structure is an essential part of a tech startup business plan. It gives investors and stakeholders insight into the management team’s ability to execute the business plan and the team’s capacity to bring the idea to fruition.

In this part of the business plan, it is vital to highlight the leadership team and their roles. Start by introducing your founders and executive team and describe their previous experience and expertise with a proven track record that makes them qualified to lead the company. For investors to easily visualize the development team of your startup business, using a graphic, such as an organizational chart, can help.

Next, outline the roles and responsibilities of each member of your team , including any advisors or board members. Remember to describe carefully how each team member will contribute and cooperate to the successful company and how their respective skill sets complement, and experience are relevant to the tech industry.

Goals and plans for the future of the leadership team and development team members can also be written in the business plan as a supplement. For example, you expect to expand your team within one year by hiring additional staff or bringing on new partners or investors. All must be written in a clear, concise, and focused manner.

Marketing and Sales Plan

A product or service with good quality is only part of it when marketing and sales plans are exactly the activities that bring users and profits to the company. The marketing and sales plan section of a tech startup business plan will serve as a critical component that outlines how your company plans to acquire and retain customers, generate revenue, and achieve sustainable growth.

Regarding the marketing strategy, since you have already defined the target audience in the target market research section of the business plan, you only need to briefly repeat this section to once again help investors develop a comprehensive understanding of your ideal customer and their buying behavior. Next, don’t forget to differentiate your product or service from competitors and effectively manage your marketing plan by describing your unique value proposition. Consider using social media advertising, SEO, content marketing, email marketing, and public relations as tactics to reach your audience and successfully execute a marketing plan.

After your marketing efforts, it’s time to build your business plan and a suitable sales strategy. The basic elements of sales strategies adopted by many startups include sales approach, pricing strategy, sales channels, and sales team structure, which provides a clear path for converting leads into paying customers.

To measure the success of your marketing and sales efforts, track progress, and make data-driven decisions, you should identify key performance indicators (KPIs) such as website traffic, conversion rates, customer acquisition cost, and revenue generated.

Financial Projections

Running out of cash is one of the primary reasons why many businesses fail. Building a financial plan right from the start will make it easier to manage expenses and manage risks for your software solution. There is no fixed financial plan of the business plan as each startup has different business orientations and goals.

However, one of the most vital aspects of this section is the sales forecast, which details how your company plans to generate revenue, including the sales channels you will use, your pricing strategy, and your projected customer acquisition rate.

The cash flow statement and the balance sheet are also important elements in a basic financial plan. The balance sheet provides a snapshot of the company’s financial health and helps you make informed decisions about your operations and growth strategies. The cash flow statement identifies how much money you expect to have on hand each month, taking into account both revenue and expense forecasts.

Final Thought

As for business plans, there is no single startup business plan template that is a perfect fit for your project since there is no startup like any other in the technology market. Each startup has different characteristics and different product businesses. Some companies set up a business plan to raise capital for a banking product . Meanwhile, there are companies that are working on human resources software.

So, start a business plan from small things. Take note of all your ideas on paper and discuss them in turn with the development team is Orient Software ’s advice.

With years of experience in the field of information technology, Orient is confident of having the ability to advise you on all problematic aspects of the industry. Contact us for more details !

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How to Write A Tech Startup Business Plan

Whether you’re just starting out or have been in business for a while, creating a tech startup business plan is valuable. It will help you clarify your idea, assess its feasibility, and determine what resources you need to make it a reality. Here are some tips on how to write a tech startup business plan to will help you get started.

What is a business plan, and why do you need one for your tech startup?

A business plan is a written document describing in detail how a business will achieve its goals. This document lays out a written plan from a marketing, financial, and operational standpoint. 

Sometimes, business plans are prepared for investors or as a requirement for a small business loan . But even if you don’t need outside funding, preparing a business plan is still a good exercise to ensure your ducks are all in one row. 

If you’re considering starting a tech startup, having a business plan helps you to stay on track. When you have an idea for a new tech product or service, it’s easy to get caught up in the excitement and overlook the importance of creating a solid foundation for your business. A solid business plan will allow you to take a step back and think critically about your concept. At the same time, you’ll perceive how your concept will be received by the marketplace. 

Furthermore, a good business plan keeps you focused on your goals and helps you track your progress as your tech startup grows. As your business evolves, you can refer back to your original business plan and adjust it accordingly. This document should be living and breathing, just like your tech startup. 

Elements of a good business plan

The contents of your tech startup business plan will vary depending on your company’s specific needs , but certain elements should always be present. Here are the five key elements that every good business plan includes.

1. Executive Summary

The executive summary is a brief overview of your business plan. It should include your company’s mission statement, a brief description of your products or services, an overview of your target market, a summary of your financial projections , and your goals for the next three to five years. 

Even though the executive summary should be the first section of your business plan document, it would be a good idea to write it last. This is because you’ll find all the important information from the other sections to complete the executive summary.

2. Company Description

The company description section of your business plan should provide an overview of your company’s history, mission statement, and core values. This section should also describe your company’s structure and how it will operate going forward. If you have any patents or proprietary technology, this is the place to mention it. 

3. Market Analysis

The market analysis section of your business plan should research and describe your industry and the specific market segment you’re targeting. This information will be useful in developing your sales and marketing strategy later on in the business plan. Include information about your target customer’s needs, buying habits, and demographics. 

4. Competitive Analysis

In the competitive analysis section of your business plan, you’ll need to identify and research your competitors—both direct and indirect. This portion is where you indicate their strengths and weaknesses relative to yours. Knowing what your competition is up to will help you develop strategies to stay ahead in the marketplace. 

5. Sales and Marketing Plan

Your sales and marketing plan will detail how you plan to reach and sell to your target market segment. This part of the business plan should include information about your pricing strategy, promotional activities, distribution channels, and sales methods. You’ll also need to provide realistic financial projections for sales revenue over the next three to five years. 

Tips for making your business plan stand out from the competition

Business plans are a dime a dozen. You need to go above and beyond the basics to make yours stand out from competitors. Here are a few tips on how to make your business plan shine:

1. Do your research

This may seem like a no-brainer, but you would be surprised how many people try to wing it when it comes to their business plan. Before you even start writing, take some time to research the industry, your competition, and your target market. This will give you a solid foundation to work from and will help you make your plan as comprehensive and impressive as possible.

2. Keep it concise

Nobody wants to read a 50-page business plan. Get to the point and be as concise as possible. This doesn’t mean that you should skimp on the details, but rather that you should focus on including only the most important information. The executive summary is a great place to start when it comes to being concise; make sure that you include everything!

3. Make it visually appealing

Remember, first impressions matter. Even if your business plan is top-notch, potential investors or partners will likely gloss over it if it’s boring or difficult to read. Use infographics, charts, and other visuals to break up the text and make your plan more enjoyable (and memorable) to read.

4. Proofread the document many times!

Last but not least, be sure to proofread your business plan before sending it off into the world. Nothing screams “unprofessional” louder than a poorly written document. So, take the time to edit and revise until your plan is error-free. Better yet, have someone else look at it for you. Sometimes, it’s easier for someone else to catch errors we overlook.

Final Thoughts: Writing A Tech Startup Business Plan

You now have a basic understanding of the components that make up a tech startup business plan. This is just a starting point, and your specific business will require more detail. But following these guidelines should give you a good foundation on which to build.

Besides a well-written business plan, you will also need the right team to help execute all the necessary actions to solidify your business strategy. When it comes to the tech talent side, Full Scale is the right match for any tech startup or even scale-up.

Full Scale houses the best and brightest software engineers, developers, and QA testers that you can find. You can forego the tedious process of finding, recruiting, and hiring developers for your tech team. We do all that for you and enjoy watching our client partners achieve great results.

Find out what Full Scale can do for you and your tech company!

Learn More about Offshore Development

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Technology Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their technology businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a technology business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Technology Business Plan?

A business plan provides a snapshot of your technology business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Tech Company

If you’re looking to start a technology business, or grow your existing technology business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your technology business in order to improve your chances of success. Your technology business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Technology Businesses

With regards to funding, the main sources of funding for a technology business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for technology businesses.

Finish Your Business Plan Today!

If you want to start a technology business or expand your current one, you need a business plan. Below are links to each section of your technology business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of technology business you are operating and the status. For example, are you a startup, do you have a technology business that you would like to grow, or are you operating technology businesses in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the technology industry. Discuss the type of technology business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of technology business you are operating.

For example, you might operate one of the following types of technology businesses:

• Network technology : this type of technology company specializes in providing the computers, printers, scanners, and phones within an organization and making sure they are all linked together in order to work seamlessly with one another.
• Software technology: this type of technology company specializes in providing and/or installing the appropriate software needed for the business. This will include the programs and productivity tools for the organization’s computer network.
• Customer relationship technology: this type of technology company focuses on providing a customer relationship management system (CRM) that keeps track of all customer interactions and information in order to consistently provide exceptional customer service.

In addition to explaining the type of technology business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of client companies served, number of positive reviews, reaching X amount of client companies served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the technology industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the technology industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your technology business plan:

• How big is the technology industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your technology business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your technology business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, small businesses, and local companies that need technological services.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of technology business you operate. Clearly, large companies would respond to different marketing promotions than small businesses, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other technology companies. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes technology companies such as Geek Squad, local stores that sell and rehab tech equipment, online technology companies, etc.

With regards to direct competition, you want to describe the other technology businesses with which you compete. Most likely, your direct competitors will be technology businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of technology do they provide?
• What areas do they serve?
• What type of technology company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Is your technology business more capable than the competition?
• Will you provide technology services that your competitors don’t offer?
• Will you provide faster technology service?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a technology business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of technology company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to technology services, will you provide computer repair, 24/7/365 service, phone installation, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your technology company. Document your location and mention how the location will impact your success. For example, is your technology business located near an office complex, an urban setting, or a busy neighborhood, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your technology marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Website and SEO marketing
• Commercials
• Social media marketing
• Local radio advertising
• Business networking

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your technology business, including updating technology, client communication and scheduling, marketing, and implementing and installing the new technology for a client.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to obtain your XXth client company, or when you hope to reach $X in revenue. It could also be when you expect to expand your technology business to a new location.  

Management Team

To demonstrate your technology business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing technologys. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a technology business or are connected to a wide network of professional organizations that frequently utilize technology.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new client company at a time or multiple new client companies ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your technology business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a technology business:

• Cost of technology to be installed
• Cost of software and equipment
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your list of technology services, types of clients you will be targeting, and the areas your technology business will serve.  

Putting together a business plan for your technology business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the technology industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful technology business.  

Don’t you wish there was a faster, easier way to finish your Technology business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

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7 steps to create a technology startup business plan.

• Published on: April 26, 2022
• Author: masschallenge

Many entrepreneurs still overlook the importance of a technology startup business plan. In a space as competitive as the tech industry, a lack of preparation will surely pave the way to disappointment.

Instead of diving in without any concrete strategy, a plan provides a foundation for sustainable business growth.

In this article, we’ll explore the essential elements of a tech startup business plan, and provide the insights you need to create a plan for success.

What Is A Business Plan?

A tech startup business plan is a document that details the premise of your technology business, summarizing vital financial objectives and operational goals, as well as details on how you will accomplish these goals.

Put simply:

It’s a road map that describes what you intend to do, and how you intend to do it.

A typical business plan will comprise the following seven elements:

• Executive Summary
• Company Description

Market Research

• Description of Products and/or Services
• Management & Operational Structure
• Marketing Plan
• Financial Plan

3 Reasons You Need a Business Plan

Before we dive into the individual aspects of a startup business plan, let’s first consider why you need one.

Just what are the benefits of a business plan?

1. It Offers Greater Clarity

Having a business plan will give you a much better understanding of your business and the objectives you are trying to achieve. Even the most basic technology startup business plan example will seek to define your goals in more objective terms.

For example, you can set specific targets for website traffic, sales volumes, or profit margins. This makes it easier to track and measure success and aligns your decision-making with sales and marketing initiatives.

2. It Increases the Chances of Success

A report from the Harvard Business Review found that companies with a business plan are 16% more likely to succeed.

Furthermore, companies that have a business plan also enjoy higher growth rates than companies without a plan.

3. You Are More Likely to Get Investment

Angel investors and venture capitalists aren’t in the habit of making bad bets. When they part with large sums of money, it’s a carefully considered decision they base on the likelihood of earning a positive return on investment (ROI). When you have a business plan, you give your startup strategic focus, which helps you create an identity that is built to succeed. This makes for a more attractive prospect in the eyes of investors, so it’s easier to raise capital for your startup when you have a plan.

How to Write a Business Plan for Your Tech Startup (7-Steps)

So, now that you understand the motivation behind creating a tech startup business plan, it’s time to see how it’s done. By including the seven elements below, you’ll have a plan that gives your company a much stronger footing.

1. Executive Summary

The executive summary is, without a doubt, the most critical element of your tech startup business plan. Despite this, a lot of plans fail here because the summary doesn’t captivate readers. If you can’t hook prospective investors, partners, or employees with your executive summary, they may never read the rest of your business plan.

Source: The Balance

This section should be compelling yet concise, giving people enough to understand what makes your startup unique, and how it will be able to offer solutions in an existing, competitive market.

While you want to keep it brief, there is a lot to pack into this opening section of your business plan. Here are the crucial components of an executive summary:

• Business Model – What is your product or service? How will you make money?
• Target Market – Who will benefit from this product or service?
• Business Opportunity – Why do consumers need your product or service?
• Marketing Strategy – How will these consumers learn more about your product or service?
• Competition – What other companies are competing for market share?
• Goals – How will your startup transform the marketplace with this product or service?

As the executive summary is such a vital aspect, it’s a smart move to write it last. By waiting until you have finished the rest of the business plan, you can draw from the other sections to craft an excellent executive summary.

2. Company Summary

The company summary essentially boils down to a single sentence, otherwise known as a headline statement.  When it’s done right, this summary can be the perfect elevator pitch to capture the imagination of would-be financial backers or partners, and it will serve as a natural lead-in to your more detailed business plan.

Source: Gusto (credit: LivePlan)

The company summary or headline statement should do the following:

• Give people a brief overview of what your company does.
• Communicate the value you offer.
• Highlight the opportunity in the market.

Here is a good template to create your company summary:

<Your company> is a <type of business> who sells <product or service> to <target customer> , who needs <solution> , but doesn’t get it from <competition> .

Don’t worry if you can’t create the perfect summary now. When you develop your business plan, you will get a better understanding of what this headline statement should be, and then you can refine it to reflect your vision and value proposition.

We’re sure you have a great idea, but that’s no guarantee that everyone is going to love it as much as you do. No matter how good you think your startup may be, you still need to conduct proper market research to learn more about your ideal customers and competitors.

Identify your Target Market

Without a viable market for your product or service, your business is doomed.

Many startups have failed quickly because the owners were so obsessed with their own product that they were effectively blind to the fact that nobody else cared about it.

Source: CB Insights Image: Cleveroad

Initially, you can adopt a broad scope to get a sense of your total addressable market (TAM), which is the potential revenue opportunity your new product or service could generate. Of course, with the competition, and changing consumer interests, it’s unlikely you will dominate the entire TAM.

Once you have this broad idea, you can hone your sights to go more niche. While this presents a smaller audience, it is more effective. By narrowing your targeting, you can market to a more engaged audience that will be more receptive and likely to purchase your product or service.

Consider the following factors when segmenting your audience:

• Demographic – What age group? What gender?
• Geographic – In what country or city do your prospects live?
• Behavior – What websites/blogs/news sources do they use? What are their purchasing habits? What retail sites or brands do they buy from?

With in-depth data analysis and evaluation of your prospective customers, you can create detailed buyer personas that help you refine your marketing strategies.

Perform Competitor Analysis

During the market research stage of your tech startup business plan, you should also carry out a thorough competitor analysis.

This will help you determine the key differentiators between your company and the competition.

Ask yourself these questions:

• Why should people choose my product or service?
• How can I improve on the existing solutions in the market?
• Why do people not already buy the products in the market?

By thinking about current trends or flaws in existing products, you can identify opportunities for innovation so that your business can connect with customers on a deeper level.

Knowing your audience is crucial, and therefore, your business plan must demonstrate a deep understanding of your target market, and your competitors.

3. Description of Products and/or Services

Here, you must highlight the link between what you are offering, and what people need, so you can prove that people are ready and willing to pay for your product or service.

Research Problems in Market

It helps to conduct some face-to-face research, asking potential customers about the problems they have. Don’t try to usher the conversation in any direction or shoehorn their answers to fit your product – instead, look to learn from their honest responses about the solutions they need.

You should do this research before creating the product. After all, it makes more sense to create a product for an existing problem, instead of trying to find a problem for your product.

Source: ProductTribe

Tailor Product to Problems

After doing your research on the existing problems in the market, trim your list to focus on a few of the most important issues. Describe how your product or service will be the ultimate solution to these problems.

For instance, if people believe the existing solutions are too expensive, you can offer a product with a more attractive price point.

By matching up consumer problems with specific solutions, you can develop a product or service that has a more significant value proposition.

4. Management & Operational Structure

The next stage of the traditional technology startup business plan template delves into the people that make up your company. You must highlight the strengths and experience of your existing team, as new partners effectively invest their money in the team as much as the business idea.

Ideally, your team will consist of several experts whose respective skill-sets complement one another. For example, your tech startup may have a coder, a graphic designer, an inbound marketing expert, and a sales professional. Discuss the merits of each team member to convey the value they add to the business.

You can also speculate about prospective new hires and the key attributes you will seek in future team members. If you haven’t already got a chief financial officer (CFO), it’s a smart move to mention adding one soon. This will add backbone to your business plan by reassuring people that you have good financial sense.

Organizational Chart

Here, your plan should clearly define the organizational structure of your startup. For now, it may just be you and a couple of business partners.

However, by including a graphic that visualizes the structure you intend to build, people will get a clear understanding of the distribution of power and chain of command.

For example, it may look something like this:

Having a hierarchy prepared before starting helps prevent any debates about who is in charge of each department, and makes it easier to understand who reports to who.

5. Marketing and Sales plan

No tech startup business plan would be complete without mentioning the marketing and sales strategies you intend to use.

Sales channels

To clarify the difference, marketing channels are used to promote your business, and its products or services, whereas sales channels are the mediums that enable people to purchase those products or services.

You may only have one direct sales channel to begin with, such as an online e-commerce store. Make sure you explain it in your business plan.

Marketing activities

In this section, you must detail how you will acquire leads and customers.

At the base level, you should do the following:

• Launch a company website
• Develop strategy to get organic traffic (i.e. visitors from search engines like Google)
• Develop a PPC strategy to get immediate online exposure for your most important product/service keywords
• Develop channel partnerships
• Build an email subscriber list

Over time, you can use marketing to nurture stronger customer relationships, which in turn, help you build an audience of loyal followers that will, hopefully, become customers.

The marketing section of your business plan will need to account for several factors, including your goals, risks in the market, and your budget. Which brings us to the final aspect of your tech startup business plan.

6. Financial Plan

Lastly, any good business plan must include pertinent details about your company budget and sales goals.

This can be daunting for many new entrepreneurs and is all the more challenging when you have no balance sheets, cash flow reports, or even any stable income on which to base your projections.

That being said, it’s still possible to make educated projections – so long as you have done solid market research.

When it comes to financial matters, your business plan should include details about:

• Revenue streams – how will the company generate income?
• Major expenses – What high costs do you anticipate in the year ahead?
• Salary demands – Are you still bootstrapping or are you and the partners taking a salary? If so, how much?
• Financial milestones – Detail your expansion strategy by considering future hires or store openings that will impact the books.

Many startups aren’t profitable in the first year. Your financial projections should maintain a long-term view for success, keeping ambitions realistic and honest. That way, you’ll be able to produce a more accurate break-even analysis .

With these long-term projections, you must consider the financial impact of expanding. You may be making more money in Year 3, but opening a new store will set you back.

Keep everything in perspective and make sure you don’t set yourself or your investors up for any nasty shocks down the road.

5 Tech Startup Business Plan Templates

When you have all the elements above in place, your business plan will be in good shape. However, presentation matters. If you want to make the best first impression, getting creative with your technology startup business plan template can make a big difference.

Not only will your research and expertise shine through, but you will have a visually stunning presentation that catches the eye of investors.

Here are five tech business plan examples to inspire you.

Business Plan Infographic PowerPoint

This plan allows you to present in-depth market analysis, statistics, and projections in a professional visual infographic. With several hundred editable slide options, it’s well worth the $16 fee for the license.

Source: Medium

Emaze Business Planning With Analytics

This is more than the average technology startup business plan template. Emaze has a diverse array of creative collaboration tools, making it easy and enjoyable for teams to create unique plans together from any of the built-in templates. Furthermore, you can incorporate analytics, which is perfect for impressing investors. That said, $19 per month for the premium version may seem a little steep for some small businesses.

Source: Emaze

Lean Canvas 1-Page Business Plan

A tech startup business plan doesn’t need to take weeks to create. In fact, with this template, you can have a basic – yet brilliant – business plan all together on a single page in just 20 minutes.

Source: Lean Stack

StartUp Pitch

For $15, you can access the full array of colorful slides in this presentation, which are all customizable to your needs. This template includes many ready-made aspects of the typical business plan, such as SWOT analysis, competitor analysis, and project timelines.

Source: Envato

This is another user-friendly tool for creating short business plans. You enter the information, and then LivePlan will generate a one-page plan in an infographic style.

Source: LivePlan

Make Your Tech Startup Business Plan a Priority

It’s not enough to have a great startup idea.

If you want to stand out from the pack, secure investment, and build a successful company that can earn real profits, growth, and customer loyalty, then you absolutely must have a solid tech startup business plan.

It’s time to create yours.

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Free Startup Business Plan Templates and Examples

By Joe Weller | May 6, 2020

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In this article, we’ve rounded up a variety of the top, professionally designed startup business plan templates, all of which are free to download in PDF, Word, and Excel formats.

Included on this page, you’ll find a one-page startup business plan template , a business plan outline template for startups , a startup business planning template with a timeline , and a sample startup business plan .

Startup Business Plan Template

Download Startup Business Plan Template - Word

Word | Smartsheet

This startup business plan template contains the essential components you need to convey your business idea and strategy to investors and stakeholders, but you can customize this template to fit your needs. The template provides room to include an executive summary, a financial overview, a marketing strategy, details on product or service offerings, and more.

One-Page Startup Business Plan Template

Download One-Page Startup Business Plan Template

Excel | Word | PDF

This one-page business plan is ideal for startup companies that want to document and organize key business concepts. The template offers an easy-to-scan layout that’s ideal for investors and stakeholders. Use this plan to create a high-level view of your business idea and as a reference as you flesh out a more detailed roadmap for your business.

For additional resources, visit " Free One-Page Business Plan Templates with a Quick How-To Guide ."

Simple Fill-In-the-Blank Business Plan Template for Startups

Download Simple Fill-in-the-Blank Business Plan Template for Startups

This comprehensive fill-in-the-blank business plan template is designed to guide entrepreneurs through the process of building a startup business plan. This template comes with a customizable cover page and table of contents, and each section includes sample content that you can modify to fit the needs of your business. For more fill-in business templates, read our  "Free Fill-In-the-Blank Business Plan Templates"  article.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

This Lean business plan template takes a traditional business plan outline and extracts the most essential elements. Use this template to outline your company and industry overview, convey the problem you are solving, identify customer segments, highlight key performance metrics, and list a timeline of key activities.

Business Plan Outline Template for Startups

Download Business Plan Outline Template for Startups

You can use this business plan outline as a basis to create your own business plan. This template contains all the elements of a traditional business plan, including a title page, a table of contents, and information on what to include in each section. Simplify or expand this outline based on the size and needs of your startup business.

Startup Business Planning Template with Timeline

Download Startup Business Planning Template with Timeline

Excel | Smartsheet

As you create your business plan, this business planning template doubles as a schedule and timeline to track the progress of key activities. This template enables you to break down your plan into phases and provides space to include key tasks and dates for each task. For a visual timeline, shade in the cells according to each task’s start and end dates. The timeline ensures that your plan stays on track.

Business Plan Rubric Template for Startups

Download Business Plan Rubric Template for Startups

Excel | Word | PDF | Smartsheet

If you’re starting a business and want to keep all your ducks in a row, use this rubric to evaluate and score each aspect of your startup business plan. You can tailor this template to the needs of your specific business, and can also highlight areas of your plan that require improvement or expansion. Use this template as a tool to make sure your plan is clear, articulate, and organized. A sharp, insightful, well thought-out plan will definitely get the attention of potential investors and partners.

For additional resources to help support your business planning efforts, check out “Free Startup Plan, Budget, and Cost Templates.”

What’s the Best Business Plan Template for Startups?

The template you choose for your startup business depends on a number of factors, including the size and specific needs of your company. Moreover, as your business grows and your objectives change, you will need to adjust your plan (and possibly your choice of template) accordingly. 

Some entrepreneurs find it useful to use a Lean business plan template design in order to jot down a business concept and see if it’s feasible before pursuing it further. Typically one to three pages, a Lean business plan template encourages you to highlight core ideas and strategic activities and remain focused on key points.

Other entrepreneurs prefer a template with a more traditional business plan design, which allows you to go into greater detail and ensure you include every detail. A traditional plan can range from 10 to 100 pages and cover both the high-level and granular particulars of your overall concept, objectives, and strategy.

There is no one-size-fits-all solution, but the following section outlines the minimum that your business plan template should include in order to gain buy-in from potential investors.

What to Include in a Startup Business Plan

Whether you choose to use a template to develop your startup business plan or decide to write one from scratch, you need to include the following elements:

• An overview of your company and the industry in which it operates
• The problem you are solving and the proposed solution
• A description of your product or service offerings, including key features
• The existing alternatives that customers use and your competitive advantage
• The target customer segments and the channels you will use to reach them
• The cost structure and revenue streams associated with your business
• A financial plan, including sales and revenue projections (ideally 3-5 years)
• If applicable, the financial requirements to get your business running, including how you will source and allocate funds

Each of the following sections provides an example of a business plan that you can use for reference as you develop your own.

One-Page Lean Business Plan Example

This Lean business plan example displays a visually appealing and scannable one-page illustration of a business plan. It conveys the key strategies you need to meet your main objectives. Each element of this concise plan provides stakeholders and potential investors with links to resources that support and expand upon the plan’s details, and it can also serve as an investor pitch deck.

Startup Business Plan Sample

This business plan sample contains all the aspects of a standard business plan. Using a fictional food truck business as the basis for a startup business plan, this sample will give you all the ideas you need to make your plan outstanding.

Download Startup Business Plan Sample - PDF

When the time comes that you need more space to lay out your goals and strategies, choose from our variety of  free simple business plan templates . You can learn how to write a successful simple business plan  here . 

Visit this  free non-profit business plan template roundup  or of you are looking for a business plan template by file type, visit our pages dedicated specifically to  Microsoft Excel ,  Microsoft Word , and  Adobe PDF  business plan templates. Read our articles offering  free 30-60-90-day business plan templates  to find more tailored options.

Top 10 Tips to Create a Startup Business Plan

Putting together a business plan can be overwhelming and time consuming, especially if you aren’t sure where to begin. Below, we share tips you can use to help simplify the process of developing a startup business plan of your own. 

• Use a business plan template, or begin with a business plan outline that provides all the elements of a standard plan to get your ideas down on paper in a structured manner. (You can choose from the selection of templates above.)  
• Remove sections from your outline that aren’t relevant or that aren’t necessary to launch and operate your business.
• Compile the data you have gathered on your business and industry, including research on your target market and product or service offerings, details on the competitive landscape, and a financial plan that anticipates the next three to five years. Use that information to fill in the sections of your plan outline. 
• Get input and feedback from team members (e.g., finance, marketing, sales) and subject matter experts to ensure that the information you’ve included in the plan is accurate.
• Make certain that the objectives of your plan align with marketing, sales, and financial goals to ensure that all team members are moving in the same direction.
• Although this section of the plan comes first, write the executive summary last to provide an overview of the key points in your business plan.
• Prepare a pitch deck for potential clients, partners, or investors with whom you plan to meet in order to share vital information about your business, including what sets you apart and the direction you are headed. 
• Who are the founders and management executives, and what relevant experience do they bring to the table?
• What is the problem you are solving, and how is your solution better than what currently exists? 
• What’s the size of the market, and how much market share do you plan to capture?
• What are the trends in your market, and how are you applying them to your business?
• Who are your direct competitors, and what is your competitive advantage?
• What are the key features of your product or service that set it apart from alternative offerings, and what features do you plan to add in the future?
• What are the potential risks associated with your business, and how do you plan to address them?
• How much money do you need to get your business running, and how do you plan to source it?
• With the money you source, how do you plan to use it to scale your business?
• What are the key performance metrics associated with your business, and how will you know when you’re successful?
• Revisit and modify your plan on a regular basis as your goals and strategies evolve.
• Use a work collaboration tool that keeps key information across teams in one place, allows you to track plan progress, and captures updates in real time.

Successfully Implement Your Startup Business Plan with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

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How to Write a Software Startup Business Plan in 2024 [With Templates]

Updated 28 Aug 2023

16359 Views

Business analyst

Every company is rooted in a unique business concept. However, having ideas isn’t enough for a company's prosperity and success. Many startups fail due to faulty training in their first year. An IT startup business plan is the first thing that can be corrected by organizing your thoughts and even finding the right people to work with, turning your idea into a prosperous project.

We'll cover how to write a startup business plan, thoroughly covering each part, give some advice, section templates, and more.

Why Does Your Startup Need a Business Plan

Before we go into precise statistics and data, let’s have a closer look at the notion of a business plan. It will assist you in better navigating the subject. The tech startup business plan is a document that summarizes strategies and ideas for the new company launch, support, and even an exit.

Now, we’ll look at stats to understand why a business plan is required. Startups fall due to a bunch of reasons: among the most widespread ones, CBInsights mentions running out of funds (for 38% of startups), absence of market need (for 35%), etc. A business plan can raise startup success chances.

Such a document serves companies for different purposes. The most common of them are:

• Attracting investments
• Building a development strategy
• Predicting your upcoming financial expenses and needs

How can the IT startup business plan assist business owners in implementing these purposes into life? It’s possible due to the following benefits such a document brings:

A technology business plan benefits

Remember that to gain these benefits, you must adhere to a specific structure when drafting your startup business plan. It must contain the following parts:

• Executive summary
• Company description
• Marketing plan
• Financial projections
• Team structure

“How to write a startup business plan” is a common question, and many entrepreneurs are looking for an answer. We’ll discuss it in detail, looking closely at each section.

Executive Summary of Technology Company Business Plan

This section serves as an introduction to the entire document. A well-written executive summary grabs readers' attention and instantly illustrates what your technology business plan is all about.

It typically includes the following parts:

Business overview

Introduce your startup to readers, tell them about your plans and offers. This section should be short - about 1-3 sentences.

Target market

Define the target market for your startup company. To make the section more useful and demonstrate your future startup value, provide a detailed market overview and client issues you would solve with your product.

Competition

Portray your possible competitors as well as the attributes that will set your company apart. Describe how you will compete in pricing, quality, or service structure in this part of the executive summary in your software startup business plan.

Emphasize your company's goals and particular milestones, illustrating the said with charts (including profit, sales, and ROI) for greater clarity of prospective investors. Think about financial estimates for different periods.

Briefly describe your team composition or tell about the lack of particular specialists and your possible ways to find them. Portray the existing staff members along with their experience, and don’t forget to mention software development partnership .

The final section tells potential investors how much money you'll need to bring your idea to life. Tell this aspect to stakeholders beforehand, including the appropriate data to the executive summary.

Sometimes even the perfect technology company business plan is not enough for the stakeholders to pay attention to your project. They’ve reviewed piles of such documents, so one more, looking like the previous, may not interest them a lot. But you can change the situation by preparing a presentation of your business plan, where you can mark the vital concepts you’d like to share (e.g., company overview, problems you’d like to solve, startup team composition, etc.).

6 Tips to Create an A+ Executive Summary

We've compiled a list of recommendations to help you create an excellent executive summary of the whole technology startup business plan.

Tip #1. Write it last

Executive summaries should be written last as they summarize the entire business plan. That's why you should complete your research for all areas of your startup business plan and then write the executive summary.

Tip #2. Capture readers’ attention

An executive summary's main objective is to emphasize critical information about the tech company business plan. But, it's vital not to overload the summary with unnecessary details regarding the concept. It should grab people's interest and make them want to learn more.

Tip #3. Keep it structured

A well-defined structure of summary will convey your ideas. Consider including an introduction, main body, and conclusion that are short but informative. The important takeaways from your tech business plan would be provided by this structure.

Tip #4. Mention exit strategy

An exit strategy is an essential part for stakeholders. It can be an acquisition by another company after running technical due diligence , share selling, or employee buyout.

Tip #5. Use facts

Your primary goal is to persuade people to invest in your company. If your startup's goals, experience, and market perspectives are based on facts, they will have more impact. For instance, you may give information about market valuation and your expected market share.

Tip #6. Avoid cliches

There are a few hazards to avoid if you want your executive summary to succeed. For example, don’t mention the team’s passion and enthusiasm. Investors already know it. They’ve seen hundreds of passionate startups before. Instead, provide decision-makers with facts and let them say that for you.

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Company Description

The company description section of a technical business plan exposes its history, aims, team structure, etc. However, it is frequently the shortest part of the business plan.

Company history

This part is based on your company's current stage. If you're an established organization looking for money for a new project, it's a good idea to provide investors with some company background. In case you are a startup business without a rich history, you may tell who is behind the company and how the founders came up with the idea.

Give a brief description of your company's location, including a physical address, or inform investors about your prospective location coordinates. Whether you'll buy or rent an office, as well as how long you'll be using it as a company location. If you have a home office, also indicate this aspect.

Type of business

This section provides information about your industry. It should be brief but not excessively so. Don't write something like, "We're going to sell things." Indicate your domain: travel, healthcare industry, etc. Finish this section off with a domain description.

Management and employees

This is a chance for investors to get acquainted with your team. Mention all staff members and management personnel, defining their duties, abilities, experience, and accomplishments. Also, don't forget to include information about yourself as an opening. Describe any gaps in the team (if you have ones) and explain how you plan to fill them.

Legal structure and ownership

This data is critical for investors because taxation varies based on the legal structure. Specify if you're an LLC, a C-Corp, an S-Corp, a Sole proprietor, or in a partnership. Specify who runs the enterprise and what technical co-founder equity they have.

Company’s mission and principles

Write this part in a creative manner. Come up with one or two lines that precisely define the aims and ideals of your business.

Critical parts of Company description

You can also include the following parts in this section of a tech business plan:

Business scaling strategies

Scaling a business equates to laying the groundwork for your company's future development. So, writing this section of the business plan for technology company, think about appropriate systems, personnel, procedures, technology, or funding — everything you need to scale.

Business opportunities

Prospective investors want to understand why your company’s considered to be profitable. Tell them about your business opportunities, offering information about factors of your future success, specialists you’ve consulted about your business, and their thoughts about it, reasons for selling the certain articles/services, and profit they may bring, etc.

Marketing Plan

It outlines the company's competitive advantage as well as its marketing objectives. This part of the business plan for startup also aids in the particular domain identification and the development of a viable business strategy.

Moreover, you can define and put down such important data as a qualitative concept description and strategies for attracting clients to show stakeholders how to differentiate your startup activity from your competitors’ and ways you may engage the users to cooperate.

This part of the business plan for a tech startup is typically divided into three sections:

Marketing plan components in a nutshell

Target Audience Analysis

Customers are vital to every company. So, you must determine to whom you will offer your services. Begin with easy tasks and work your way up to more complicated ones.

Let's say your firm is an online car parts store that you want to open on the West Coast of the USA. Your potential core audience may look like this after brainstorming:

• Gender (Males)
• Age (16 - 60)
• Location (Los Angeles, CA)
• Education (Secondary)
• Income ($60,000 - $75,000)
• Ethnicity (drivers, service stations workers)

After determining general characteristics, it is time to dive deeper into the analysis. It can be done in a variety of ways in every sample business plan for tech startup.

Conduct surveys

According to your audience assumptions, you may collect focus groups and conduct surveys. It is possible to complete them both online and personally for technology business plans. Surveys can help you learn more about your consumers to provide better service.

Analyze competitor’s audience

Competitors already meet consumers’ needs, and your task is to identify their audience and understand what makes them use their product or service.

Examine your rivals' marketing channels to see how they do it. Visit their websites, follow them on social media, and sign up for their newsletter. These procedures will assist you in identifying the pain areas of your clients.

Create a buyer persona

The final stage in the target audience study is to create a buyer persona based on the research findings from prior steps of every tech business plan example. Let's take a closer look at it.

A buyer persona is an ideal consumer description, including how they use their leisure time, the obstacles they face, and their decisions. Such a description may be created using various methods. For example, HubSpot's Make My Persona product works perfectly for it.

Learn more about how to define target audience in our article!

Competitor Analysis

Competitor research is critical to the company's success. It allows you to have a deeper understanding of your target market, as well as identify competitors, their tactics, and offerings, among other things.

You should follow three phases while conducting a competitive analysis for a business plan for tech startup.

Step #1. Find competitors

Start by searching for basic requests in Google. Make a list of your rivals in the same business as you and have similar ideas. After that, do some in-depth research, analyzing their social media posts, news reports, or consumer reviews.

Step #2. Examine them

It’s time to dig deeper. But keep in mind that you may need special tools like Ahrefs or SimilarWeb. Carefully examine the following criteria essential for every tech business plan sample:

Pricing. Analyze the charges for their services. It will assist you in determining the pricing boundaries for your goods. However, bear in mind that you are not obligated to value your product lower than your competitors in order to win the competition.

Organic traffic. Determine how many visits they receive due to a Google search. These metrics will display the popularity of your competitors. To handle them, you can use tools like Ahrefs, SimilarWeb, and Alexa.

Social media mentions. It's another way to look into your opponents' activities and see what consumers say about them. With tools like Followerwonk, Social Searcher, and Sprout Social, you can monitor engagement rates, keywords chosen, or social shares and mark them in your business plan.

Time on the market. You must determine the time on the market to see if you will compete with a major company or a start-up. The WHOis.net service may be used to examine the domain name registration date, server stats, and contact information.

Step #3. Categorize them

Even having learnt everything about your competition, you still need to watch your rivals and follow their movements. The next step would be to split competitors into three categories based on their “danger level”:

Primary competitors

These are the main ones oriented to the same core audience as you.

Secondary competitors

They can provide high or low-level versions of your services to a different target audience than yours.

Tertiary competitors

They are indirectly related to your company.

SWOT Analysis

It’s the final step of the section in every tech startup business plan example.

SWOT is an abbreviation of Strengths, Weaknesses, Opportunities, and Threats:

• Strengths contain your strengths, killing features, and those able to help stand out from the competition.
• Weaknesses mean your weak sides and flaws that may slow you down in a competitive race.
• Opportunities are the levers that’ll help you in business development.
• Threats are external threats that may impact your startup yet don’t depend on your decisions.

The SWOT matrix is a tool used by businesses to compile all their data into one page. To simplify this process, we recommend using the below technology business plan template (namely, one for SWOT analysis).

SWOT analysis template

Financial Plan

A financial plan is a projection of future income and costs for your business. It's an important aspect of strategic planning that can turn vague objectives into concrete milestones.

Complete the following parts in your business plan tech startup example or create them yourself:

Balance sheet

This part illustrates your present financial situation. A balance sheet is a wonderful method to forecast your future financial condition and design your growth objectives if you're searching for finances.

Expense projections

You must plan your future expenses classified into fixed and recurring costs to make your concept clearer to stakeholders. In general, estimate how much money will be spent on your idea implementation and how frequent these expenses would be.

Income projections

This part of the business plan tech startup needs summarizes the project's future earnings and sales. To begin with, you must predict your product's sales. After that, forecast the possible revenue for your startup using the sales projection.

Cash flow projections

The cash flow estimates are the last element of the financial plan. In a nutshell, it's a summary of all the money going in and out of the company. It shows your company's financial health at all stages of development, including the company's income and expenses. Depending on it, the remaining cash balance is calculated for a given time.

Monetization strategies

A company establishment and a beginning of the product development flow are only half of the way to market launch, impossible without a proper monetization strategy — a method of future profit gaining. For example, if your upcoming product is a fitness mobile application, you can implement advertisements, in-app purchases, freemium strategy, and others.

For successfully hitting your aims, you should know your destination, as well as the tools and methods you need to achieve established objectives. All this information can be included in your sales plan.

Though it’s considered to be a separate document looking like the business plan, the essential difference is that the business plan contains your objectives, and the sales plan mentions how to achieve them.

You can also include a sales plan as a section in a startup business plan, containing your situation assessment, financial forecasting, resources, revenue targets, etc. Document templates (for example, one from 150 Startups below) will help you understand which direction to choose.

Financial plan section

Tips to Make a Financial Plan

Preparing a financial strategy for a starting firm might be difficult, but it is essential for any business plan. To make the process easier, we've compiled four helpful hints answering how to write a business plan for a tech startup, namely this section.

Keep your financial plan in line with the business plan

The statistics in your financial predictions should back up all of your verbal goals outlined in earlier parts. For example, if you want to launch your product in the third quarter of 2022, you'll need to budget for marketing, shipping, and other expenses during that time.

Your financial assumptions must be clear

Even if the precision in figures of a financial plan is critical, most investors care about your projections comprehension. Demonstrate your understanding to them, providing enough material to back up your financial assumptions: annual financial statements, market/competitor analysis data, etc.

Be optimistic yet realistic

Even a significant financial plan requires a healthy dose of optimism. But don't go too far with it, or you'll come out as a dreamer to the investors. It's critical to balance the accuracy of the facts and the need to show a financially viable project to stakeholders.

Use templates

Many business owners have no clue where to start when creating a financial strategy or how to present it. If so, use pre-made templates with all of the essential sheets and columns.

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Team Structure

This is the final section of the business plan, informing investors about your startup's organizational structure. It may contain the following parts:

Management Team

Team composition is essential for a proper startup functioning, as well as for its future growth. If you’re going to launch a software development company, at the beginning of the startup’s existence, your project team formed may include:

• Chief Executive Officer (CEO) — an expert responsible for company management, supervising, human resources running, communication with CTO, etc.
• Chief Technology Officer (CTO) — a team member competent in development and technology areas, UI/UX design, back-end, or QA team supervising
• Chief Marketing Officer (CMO) — a specialist responsible for the clients’ perception of your service or product offered
• Chief Sales Officer (CSO) — an expert running all activities connected with business development

The software development team composition should contain the following specialists as UI/UX designers, front-end and back-end developers, QA engineers, and others essential for the product’s appropriate development.

How to build a software development team — revealed! Check our recent guide to know more!

So, list and briefly characterize each key management person in your business. Try to tie their expertise to your company's current responsibilities, using the business plan template tech startup requires, or write this part on your own.

For instance, if your VP of Sales has previously worked for an organization that increased sales from $5 million to $10 million, it would be a wonderful addition to demonstrate their knowledge and value on the team. You'll also demonstrate to investors that you've assembled a strong team they can trust with their funds.

Management Team Gaps

This is common when a company lacks some management team members while developing a business plan. If it's your case, you should make a list of any absent personnel and the particular skills for future candidates, such as experience in the needed sector, duties, etc.

For example, if you want to find a CTO for a startup , you can say that the perfect candidate must have 10+ years of experience, top-class knowledge of modern technologies, and extensive skills to effectively manage the team and develop the product.

Board Members

The Board of Directors is a hired group of individuals that assist you in running your business properly. Even if a Board of Directors is uncommon for startups, you may spot one in the team structure and care about these gaps to be filled.

Supplementary Sections For Your Business Plan

If you need to provide stakeholders and other readers of your business plan with additional information about your startup company, you may give it in a supplementary appendix section to your business plan example tech startup needs (or one created by yourself). It isn’t essential; however, your possible investors may need some more data about you and your business (a credit history, for instance).

So, the appendix should be prepared beforehand to save time in the future. You can include in it:

• Charts, tables, and other illustrations absent in the central parts
• Trademark/patent documentation
• Market researches in details
• Credit history
• Supportive papers (contracts, agreements, etc.)

You may also add here:

A production plan: it is your helper during production activity setting tasks that should be completed for aims achievement, every employee function in such a completion, and so on.

An operations plan: it may identify your startup’s primary business needs, such as equipment, requirements to inventory, office building, or location.

Preparing an appendix, care about its simplicity in reading and comfort in use. If it’s too long or contains too many documents to read, make a supplementary table of contents for more straightforward navigation of your plan readers. Disclosing confidential data, please monitor users having access to it and remind them about the necessity of maintaining confidentiality.

On top of that, the readers can skip the supplementary section as it’s the last part of your business plan; your prepared plan should be understandable and self-reliant. Otherwise, it will need reworking.

The Famous Startups Succeeded Due to Planning

A way to success and prosperity isn’t a bed of roses. World-famous companies began their way from startups one day, thoroughly planning every step on the road to fame. For you to inspire, we’ve prepared a shortlist of such startups’ success stories.

Samples of startups successful due to accurate planning

In the beginning, Pinterest was an invitation-only service. To go further on their development path, the company planned every business step, thinking about a proper UX for their product: Ben Silbermann even gave users his personal phone number to contact him about the site at any time of day or night. This perseverance paid off. Now Pinterest is a unique platform with $633 million revenue.

Canva is one of the leading graphic design platforms designers love to use for everything. This successful Australian business has raised over $US 1 billion of revenue. Due to proper scheduling policy and belief in workforce empowering, Canva CEO Melanie Perkins could make her company successful, having an audience of more than 10 million customers.

The well-known messenger allowing people to communicate worldwide was invented in a gym. When Jan Koum and his co-founder Brian Acton were annoyed with missing calls while at the gym, they created WhatsApp, which allows users to update their "status" to indicate when they are ready to accept calls. They only wanted to make a good product for customers, which approximately turned into more than $5.5 billion of revenue.

Netflix, which started its way as a rent-by-mail DVD service that required users to pay for each rental, is now worth more than $30 billion. It's a brilliant illustration of how pivoting a business model can significantly affect a company's direction. Netflix was able to further establish itself as the go-to media company by pivoting from DVD by mail to developing award-winning programming and gaining revenue of more than $US 7.5 billion .

Creating Your Own Business Plan

Strict planning of business steps was one of the essential things all the above companies had in common to grow and become more successful. We can personally propose a tech startup business plan template from Shopify that most nearly meets the points discussed above.

Shopify tech company business plan template

But remember that such a document will properly work if its critical blocks are created with the help of qualified experts. Cleveroad, a skilled IT consulting company and software solution provider from Ukraine, Eastern Europe, is ready to help you with initial project development phases and further ones. Since 2011, we've been assisting startups and organizations of all kinds in acquiring cutting-edge technologies.

During the collaboration with us, you’ll obtain a wide range of services, containing (but not limited to):

• Proven in-depth software development experience in a variety of sectors
• Working with high-qualified, certified, and agile-oriented Business Analysts, Solution Architects, and other tech specialists able to help you solve business issues
• Consultations from our Business Analysts and tech experts about your project
• Initial project estimates from our Sales Managers for free, with no hidden costs
• Honesty with our clients and partners as a critical component of developing outstanding products

You can also apply to us if you have problems with business plan creation. We’ll help you solve them quickly and efficiently build a software product for your business.

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Wrapping Up

Developing an information technology startup business plan is a complicated and time-consuming process that practically every company should undertake. You can adapt pre-made templates, but no one-size-fits-all template will work for every company. That’s why you may make your job easier, applying to specialists competent in software development.

A business plan can help you organize your thoughts, ideas, and even find the right people to work with. Even though making a business plan (or completing a technology startup business plan example) is a long and complex process, almost every startup should go through it.

Your startup business must have these sections:

• Executive summary. This section sums up the entire business plan and works as an introduction.
• Company description. This part reveals history, goals, team structure, and other details about your company.
• Marketing plan. A marketing plan is a representation of the startup’s competitive advantage and marketing goals.
• Financial projections. In plain language, it’s a forecast of the future revenue and expenses of your startup.
• Team structure. This section serves to familiarize investors with the hierarchy of your startup team.
• Step 1. First of all find a flexible template to jot down your business plan.
• Step 2. Write company description.
• Step 3. Define your goals, make a market research and jot down it's results in marketing plan.
• Step 4. Write financial plan.
• Step 5. Write your management team structure.
• Step 6. Sum previous section in executive summary.

Evgeniy Altynpara is a CTO and member of the Forbes Councils’ community of tech professionals. He is an expert in software development and technological entrepreneurship and has 10+years of experience in digital transformation consulting in Healthcare, FinTech, Supply Chain and Logistics

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Very useful article.

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Thanks for the article! I'm an entrepreneur, and I've been stuck in this business plan stage. It's hard for newcomers to gather all their thoughts in one plan. But you've explained it perfectly!

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Good article. Found it interesting.

Nice piece of information. You've nailed its explanation. Besides, these templates that you've attached are really great. I think that they will suit perfectly for new startups.

Jul 26, 2024

May 01, 2024

Oct 05, 2023

Tech Startup Business Plan Template

What is a Tech Startup Business Plan?

A tech startup business plan outlines a company's strategy and objectives. It serves as a roadmap for how to start and grow a business, and covers all the important aspects of a business including marketing, operations, and finances. The plan also gives details on how to organize the company's resources to achieve the desired results. It also provides information on the goals and strategies for the company, and how to measure the success of the business.

What's included in this Tech Startup Business Plan template?

• 3 focus areas
• 6 objectives

Each focus area has its own objectives, projects, and KPIs to ensure that the strategy is comprehensive and effective.

Who is the Tech Startup Business Plan template for?

This Tech Startup Business Plan template is designed for tech startup founders, investors, and teams who are looking to launch a new tech venture. The template helps you to plan and organize all the important aspects of your business and provides a comprehensive overview of your strategy, goals, and objectives. With this template, you can easily set measurable targets and create actionable projects to reach those targets.

1. Define clear examples of your focus areas

A focus area refers to the key areas of your business that you want to focus on in order to achieve your goals and objectives. Examples of focus areas could include developing a business model, designing and developing software, or marketing and selling. Each focus area requires its own set of objectives, actions, and measurable targets (KPIs).

2. Think about the objectives that could fall under that focus area

Objectives are specific goals that you want to achieve within each focus area. For example, if your focus area is developing a business model, your objectives could be to establish a sustainable business model, or to implement and refine the model. Objectives should be specific and achievable.

3. Set measurable targets (KPIs) to tackle the objective

Measurable targets (KPIs) provide a way to measure whether or not an objective has been achieved. For example, if your objective is to increase customer base, a KPI could be to increase customer feedback. KPIs should be quantifiable and measurable in order to track progress and measure success.

4. Implement related projects to achieve the KPIs

Projects (actions) are the steps you need to take in order to achieve a KPI. For example, if your KPI is to increase customer base, an action could be to execute the business model. Projects should be concrete and achievable, and should be designed to help you reach your KPIs.

5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

The Cascade Strategy Execution Platform is a powerful tool to help you quickly and easily track your progress and measure your success. With Cascade, you can easily set measurable targets, create actionable projects, and track your progress. With Cascade, you can ensure that you reach your goals faster and with greater efficiency.

How to Write a Startup Business Plan (10 Effective Steps)

Learn how to create an effective business plan in 10 easy steps and discover the transformative power of mentorship to elevate your startup's strategy.

Robin Waite

5 minute read

Short answer

What should an effective business plan include?

An effective business plan should include the following elements:

• Executive summary
• Company description
• Market analysis
• Your products or services
• Marketing and sales strategies
• Organization and management
• Financial projections
• Funding requirements
• Risk assessment
• Conclusion and Call to Action

You need a strategic business plan to successfully navigate the startup world

Diving into the startup world without a clear plan is like setting sail without a compass ; you might drift aimlessly or even crash.

A solid business plan isn't just a piece of paper—it's your roadmap to success. It attracts the right investors, guides your decisions, and sets you on a clear path to victory.

In this article, I’ll walk you through 10 essential steps to craft that perfect plan. Plus, I’ll touch on the invaluable insights a business mentor can offer.

So, if you want to avoid common pitfalls and boost your chances of success, keep reading. Your startup's future might just depend on it.

Step 1: Executive summary

Think of the executive summary as the elevator pitch for your startup. It's a quick snapshot that captures the heart of your business idea, mission, and goals.

In this brief section, make sure to highlight who your target audience is, what sets you apart in the market, and your unique selling points.

And don't forget to give a glimpse of your financial outlook and any funding needs—it sets the stage for the details that follow.

Here's an example of an executive summary slide:

Step 2: Company description

Here's where you tell your startup's story. It's not just a list of facts or a timeline. It's about painting a picture that connects with your readers.

Clearly outline your vision, mission, and the values that drive you. Share key milestones you've hit and where you currently stand in your business journey. This section gives depth to your startup, showing both where you've been and where you're headed.

Here's an example of a company introduction slide:

Step 3: Market analysis

To thrive, you've got to know the lay of the land. That's where market analysis comes in. Start by zeroing in on your target audience and truly understanding what they're looking for.

Dive deep into industry trends, the overall market size, and where it's headed. And don't just know your competitors—understand what makes you stand out from the crowd.

Here's what a market analysis slide should look like:

Step 4: Products or services

Here's your chance to shine a spotlight on what you're offering. What problems are your products or services solving? What makes them special? Whether it's a unique feature, a patent, or some groundbreaking tech, make it clear why your offerings are game-changers.

Here's an example of a solution slide:

Step 5: Marketing and sales strategies

In today's crowded market, standing out is crucial. This step is all about your game plan to grab attention and win customers. Detail how you'll sell, where you'll promote, and how you'll get your products or services into the hands of those who need them.

Here's what a go-to-market slide should look like:

Step 6: Organization and management

Behind every great startup is a team of passionate people. Here, introduce your squad. Highlight their expertise, define their roles, and show the structure that keeps everything running smoothly.

If you've got advisors or partners in your corner, mention them—it shows you're serious about growing in every direction.

Here’s a full guide on how to create the perfect team slide for your startup . And here's a great example of one:

Step 7: Financial projections

Numbers don't lie, and in this step, they sketch out your startup's potential future. Dive into the financials, projecting where you see your revenue, expenses, and profits heading over the next few years.

By breaking down your initial costs and where you expect to get your funding, you give a clear view of how you're setting up for success.

Here's an example of a financials slide:

Step 8: Funding requirements

Every startup needs fuel to get off the ground, and that fuel is capital. Here, be clear about how much you need to launch and keep things running.

Break down where every dollar will go, whether that's marketing, product development, or daily operations.

If you've already got some backers or have your eye on potential investors, mention them—it adds weight to your pitch.

Here's what a use of funds slide should look like:

Step 9: Risk assessment

Every venture has its bumps in the road. Here, show that you're not just aware of potential challenges but that you've got a plan to tackle them. In assessing risks, it's crucial to choose the right business structure at the beginning. For examples, the formation of an LLC as a strategic measure not only protects your personal assets from business liabilities but also mitigates financial risks for stakeholders. By laying out your strategies for handling risks, you prove you're not just optimistic—you're realistic and ready.

Here's an example of a risk assessment slide:

Step 10: Conclusion and Call to Action

Time to wrap it up and rally your readers. Summarize the key points of your plan, driving home why your startup is a solid bet.

But remember, this isn't just a conclusion—it's a launchpad. Encourage readers to get involved, whether that's investing, partnering, or simply supporting your vision. Let's get this journey started!

And, if you need more information, check out our comprehensive guide on how to write a business plan .

Here's an example of a next step slide:

Seek guidance from a business mentor

While a solid business plan is your startup's compass, adding guidance from a business mentor to your journey is like having a seasoned captain on board.

They bring a treasure trove of insights, lessons from past experiences, and a network of industry contacts. Their tailored advice doesn't just polish your plan—it also boosts your confidence and resilience, two must-haves for the unpredictable startup seas.

By embracing mentorship, you're signaling that you're all in on growth, ready to soak up wisdom and accelerate your path to success.

Why is a business plan crucial for startups?

Think of a business plan as your startup's GPS. It helps you navigate the twists and turns, pointing out both the challenges and the golden opportunities ahead. It's your master blueprint, detailing everything from your big-picture goals to your financial forecasts .

What role does a business mentor play in this process?

A business mentor serves as a seasoned guide in the startup journey. Drawing from their wealth of experience, they offer invaluable insights, helping startups navigate challenges and optimize their strategies. Their guidance is instrumental in making informed, strategic decisions.

How can a mentor enhance my market analysis?

Mentors have their finger on the pulse of the industry. They can help you get a clearer picture of market trends, spot who you're really up against, and gauge where the opportunities lie. With their insights, your market analysis won't just be good—it'll be top-notch.

Can a mentor assist in financial projections?

Absolutely. If your mentor has a financial background, they can be a goldmine. They'll help you craft projections that are both ambitious and grounded in reality. From revenue estimates to potential expenses, they'll ensure your numbers make sense.

How can you incorporate mentorship into the business plan?

Consider adding a dedicated section in your business plan to highlight the mentorship aspect. By detailing the insights and guidance you've received, or intend to seek, you underscore your commitment to informed growth. This proactive approach can resonate well with potential investors and stakeholders.

Business plan templates

Starting your business plan can feel like staring at a blank canvas—it's full of potential, but where do you begin? That's where interactive business plan templates come into play.

These templates serve as a structured guide, ensuring you don't miss any crucial details while allowing for flexibility and customization. They're designed to streamline the process, making it easier to organize your thoughts and present your vision in a coherent manner.

Ready to dive in? Grab a template from the library below and give your business plan a head start.

Robin Waite is a business coach based in the UK, bestselling author, and also regular business speaker. Robin's Fearless Business Accelerator covers pricing, productising services, and sales for coaches, consultants, and freelancers. Robin's passion is content marketing and blogging and he enjoys finding creative ways to make complex business topics simple for his readers.

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Tech Startup Business Plan: Your Blueprint for Success

Many aspiring entrepreneurs fail because they invest their time and money without having a good business plan first. And as the French writer Antoine de Saint-Exupéry said, “A goal without a plan is just a wish.” So rather than wishing, why don’t you turn your idea into a successful tech startup by doing your due diligence and writing a good business plan?

In this article:

What is a tech startup business plan?

7 questions to answer before you begin writing your tech startup business plan (according to peter thiel).

• Executive summary
• Company description
• Market analysis
• Marketing and sales strategy
• Team structure
• Financial projections and future goals

A tech startup business plan is a document that presents the idea behind a tech startup, lays out its strategy, and sets its future goals. It provides direction and guidance throughout all phases of launching, operating, and expanding a technology business.

According to CB Insights , the three most common reasons new startups fail are running out of money, being unable to raise new capital, and lacking demand for their product in the market. Those mistakes can be easily avoided if you make sure to begin with a sound and well-researched business plan.

Although selling your idea in a thirty-second elevator pitch makes for a great story, the reality is that serious investors look for a sound business plan backed by meticulous research and in-depth analysis.

Professionally presenting your startup idea will increase your chances of acquiring investors.

They will see that you thoroughly prepared your business strategy, analyzed market needs and niches, and that you know how your startup should evolve going forward.

So how do you write a good business plan for a tech startup? Although there is no one-size-fits-all solution since every idea and startup is unique and requires its own approach, there are some universal cornerstones that every business plan for a tech startup should include.

Crafting a tech startup business plan is not just about filling out a template with generic information. It is also about demonstrating the ability to execute a vision and adapt to changes in the market. We always advise entrepreneurs to take their time to research, analyze, and iterate their business plan until it accurately reflects their vision and goals. Paul Jackowski CEO, ASPER BROTHERS Let's Talk

In his book Zero to One, acclaimed PayPal founder and inaugural outside investor to Facebook Peter Thiel posed seven fundamental questions that any startup founder should be able to answer.

Thiel argues that most failed tech startup founders had difficulty answering at least one of these. To quote the author:

“Whatever your industry, any great business plan must address every one of [these questions]. If you don’t have good answers to [them], you’ll run into lots of ‘bad luck,’ and your business will fail. If you nail all seven, you’ll master fortune and succeed.”

The 7 questions include:

• The Engineering Question . Is your product just an incremental improvement or an actual technology breakthrough?
• The Timing Question . Is it the right time to start your business?
• The Monopoly Question . How much competition will you have? Will you start with a significant share of the market?
• The People Question . Are your employees the right people for the task?
• The Distribution Question . Can you not only produce but also deliver your product?
• The Durability Question . Is your business viable in the next 10 or 20 years?
• The Secret Question . Have you identified why your technology startup is unique? Will you offer what others do not?

6 sections every business plan should have

There are six important sections that every professional tech startup business plan should have. They are critical to ensuring that your business plan is comprehensive, well-organized, and effective in conveying your startup’s potential to venture capitalists and partners.

Making sure that you include all those sections will help you not only to navigate the competitive waters of the tech industry but also to catch the eye of potential future investors.

#1 Executive summary

The executive summary is the most crucial part of your business plan. The opening pages of your business plan should provide a thorough yet succinct overview of all core aspects of your future company. Most investors will not bother themselves with reading fifty or so pages of your business plan if you fail to capture their attention with your executive summary.

A good executive summary should highlight what makes your startup unique and worth investing in. If you present your strategy and back it with a comprehensive target market analysis, you will show prospective investors that your startup is worth their time and money.

A good executive summary should present your product or service and provide the reader with several key insights into your strategy. We have grouped them into the following sections:

• Description of your product . While this section should not be too detailed, it must capture your readers’ attention. Explain what you’re offering and show why your product or service will stand out from the crowd.
• Your target market . Identifying your target audience is the key to any successful endeavor. Even the best product will fail if no one is willing to buy it.
• Marketing strategy and sales . Once you identify your customer base, show how you plan to access it.
• Competition . Innovation is the name of the game, but chances are that other companies are working on products similar to yours. Identifying your competitors and their offer is crucial to showcasing that your idea is both viable and competitive. Conducting a benchmarking analysis might be a good idea.
• Team structure . How will your startup be organized? You must have a general idea on how you want to structure your startup. Beyond that, think about scalability. Managing just a few people is easy, but you must also know how your organization should be structured when it grows.
• Funding . This is one of the most crucial parts of your business plan and executive summary. Positive cash flow and multiple ideas for acquiring new funds differentiate a successful startup from a failed one.
• Future goals . Having a clear direction and a realistic goal will help convince investors that your startup is viable in the long term beyond its initial launch. Besides, showing that you have your head straight will go a long way.

Do not worry if the executive summary seems overwhelming right now. While it is the first part of your business plan, it is advisable to write it last. Each point listed above should summarize other sections of your document.

Key takeaways: Write it last — after all, it is a summary. Keep it concise but highly informative. Try to present it in a visually appealing way. You can make your first impression only once.

#2 Company description

This section of your business plan is pretty straightforward. Company description is, simply put, a detailed description of your tech startup. It can be as detailed as you want, but there are some key points that investors will expect to see in your description:

• (Optional) The headline statement. As an experienced pitchman, you should open your company description with a headline statement. This can be your “elevator pitch” or a single sentence that will capture the spirit of your company and your product or service.
• The founder and the team . Let people know who you and your employees are. Here you can share any previous achievements and successful ventures you had, as well as your team’s credentials.
• Core values and mission. People like to know that the brand behind the products and services they buy stands for something. Describe the core values and mission of your startup. What impact will your product have on the market? How will it change the landscape? Go big.

#3 Market analysis

Understandably, most tech startup founders are incredibly passionate about their ideas. However, this can also be a double-edged sword. While such passion can fuel your work and help motivate others around you, it can also leave you oblivious to what people might actually want or need. Even the best product can fail if there is no market need for it.

Market analysis is where you determine whether there is demand for your product, research your future competition, and establish which slice of the market you should target with your marketing campaign.

The specifics of market research you should do before launching your company depend heavily on the type of products and services you will offer. Nonetheless, there are some key market areas that every company should consider before forming their strategy.

Identifying your prospective buyers by their demographic, location, and purchasing behaviors will give you valuable insight into what you can expect when launching your startup. To do so, draft a profile of your future client, pinpoint early adopters, as well as customer bases you can reach after you scale up.

Once you have identified your potential customer, focus on researching their needs and habits. Not only will it help you tailor your products to suit the market, but it will also allow you to prepare a well-targeted marketing campaign. While you conduct your research, be on the lookout for potential market gaps. Any such niches could potentially provide valuable insight for developing your product further.

The last section of market analysis should be the competition. If the market is oversaturated, your tech startup will struggle, especially in the beginning. Look for companies and startups that offer products and services similar to yours. Focus on areas your competition excels at and try to spot their shortcomings. Maybe their products are perfect, but they miss the mark when it comes to the needs of the demographic you identified during your market analysis? These are the gaps that your technology startup should fill in order to rise to the top.

#4 Marketing and sales strategy

Once you have a deeper understanding of the market and your target demographic, it is time to craft a marketing strategy and a sales plan. First, you need to focus on marketing and sales channels. While the former is how people will learn about your tech startup, the latter is how they will actually be able to buy your product.

Your marketing efforts should be aimed at reaching your target audience. There are multiple ways of getting your message across; tech startups often use digital marketing strategies such as targeted ad campaigns.

Because the tech industry is fast-paced and competitive, you need a strong brand identity that will get through to your base. You have to win people over with your core values and show them the ways in which your brand is better than that of your competitors.

Use social media to create brand awareness and help people get familiar with your product.

Lastly, it is a good practice to set key performance indicators (KPIs). They will allow you to quickly verify the efficiency of your marketing campaign and adjust it accordingly.

Sales strategy, on the other hand, focuses on pricing and distribution channels. Having done your market analysis, you should be able to establish the price of your product. Keep in mind that your pricing should be set by taking into account both your financial projections and the amount of money your future clients will be willing to pay for it.

The second key aspect of a sales strategy involves identifying distribution channels. To maximize your profits, you should analyze the habits of your target demographic and determine how to reach them most effectively. While it may be easier for younger people to find your products online, for example, if you target an older demographic, consider other distribution channels.

#5 Team structure

This business plan section should explain how you want to structure your tech startup. After all, it is said that investors put their trust in people, not just ideas.

As a founder, you need employees who can help you bring your idea to life. Think about your future team and its essential components. How many software engineers, marketing specialists, and other employees do you need to get your startup up and running and help it gain momentum? As always, it is good to plan ahead, so you should think long-term and account for the future growth of your team based on financial projections and goals.

If you show that you have a strong software development team with considerable experience, you will catch the attention of investors. Start by presenting your board members and their previous projects; experienced founders will boost your startup’s credibility.

Then, focus on the management team: if you already know who will manage your company’s day-to-day operations, include this information in your business plan. Emphasize their experience in the tech industry and show their achievements.

Lastly, present the profiles of experts and specialists who will be directly involved in developing your product or service. How many designers, coders, and marketing specialists do you want to employ?

#6 Financial projections and future goals

Financial projections are among the most essential parts of your business plan. Prospective investors will want to know the return on investment they can expect from your company.

Try dividing your timeline into short increments – two or three months long. Consider how many units of your products you wish to sell in each increment. How much money do you need to maintain a positive cash flow? By crafting a well-researched sales forecast, you will have a solid benchmark. This tool will help you verify whether you meet your financial goals. Conducting a break-even point analysis is also a good idea.

Future goals are the long-term milestones you want to achieve. The longer the horizon, the more unreliable financial projections become, and they are insufficient to show that you have a realistic vision. This is why setting future goals and showing that you can steer your company in the right direction is vital. Having a bigger picture in mind will help you overcome any temporary setbacks you might experience.

Composing a business plan can be a daunting task, particularly if you’re new to the process. The thought of outlining your business goals, strategies, and financial projections can be overwhelming. But it’s crucial to understand that a well-written business plan can determine the success or failure of your startup.

In the rapidly evolving technology industry, competition is intense, and startups must be prepared to adapt to changes quickly. A sound business plan that considers market trends, customer needs, and potential roadblocks is vital to thriving in this fast-paced environment.

Startups that fail, often do so because they lack a clear plan or have not done their due diligence. On the other hand, successful ones tend to rely on a well-crafted business plan that can later serve as a tech startup guide . By taking the time to write a solid business plan, you’re setting yourself up for success and positioning yourself to stand out among your competitors.

Aleksander Furgal

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How to Create a Tech Startup Business Plan and Succeed

• Updated on 5 Mar 2024

Like Abraham Lincoln spending four hours sharpening his ax before chopping down a tree in six, proper planning is essential for launching a successful tech startup in 2024.

Sure, coming up with a great idea is the first step, but having an organized business plan to execute that vision is what separates the startups that thrive from those that flounder.

Despite the rewards, the tech industry is intensely competitive.

In their excitement, many founders with creative ideas overlook crafting a solid business plan and rush into launch.

A well-structured business plan serves as the driving force behind a startup’s growth and success. It allows tech entrepreneurs to set ambitious goals, secure early funding, track progress, and assemble the necessary resources.

This article provides tech founders with a comprehensive guide for creating a business plan tailored to launch a thriving startup.

It outlines practical steps to craft a strategic vision and set measurable objectives so those long hours sharpening your “ax” pay dividends down the road.

With the proper preparation, a thoughtfully laid plan, and commitment to persistent execution, your tech startup can chop through the competition.

Ready to Bring Your Idea into Reality?

Unlock your startup potential now — start transforming your vision into a scalable solution with our expert developers today!

What is a Business Plan, and Why Do You Need It?

A business plan is an outlined process documentation of a company’s goals and how it intends to achieve them by laying out the roadmap for all different business aspects like marketing, finance, and operations.

Before creating a well-structured business plan, knowing why you need one is essential.

Writing a business plan for tech startups helps in assessing the startup opportunities realistically, in addition to other benefits such as:

• A better understanding of the business and its objectives
• Forecast the financial needs and expenses
• Build a development strategy
• Attract investors and support fundraising campaigns
• Pitch deck to prove the startup will last and grow
• Prepare the company to face critical challenges and overcome them
• Analyze the targeted market and competitors

Creating a Business Plan for Your Tech Startup

Now that you clearly understand what business plans are used for, it’s time to take the first step. Therefore, we’ll demonstrate the practical steps of how to start a business plan.

Step 1. Write a Company Description

A startup description is an overview of the business that answers two main questions: ”Who is the founder behind the startup?” and “What will the founder undertake to guarantee the startup’s success?”.

It provides extensive details about the business approach, includes all the required elements to grab investors’ attention, can be utilized as a startup pitch deck, and  usually contains the following information:

• Tech startup business name and location
• The vision and mission statements
• Long-term and short-term goals and objectives
• The legal form of ownership, e.g., LLC, cooperation, etc
• Products, services, and targeted market
• Starting date with a brief history of how the idea came up
• The startup’s strength points and competitive advantages
• A summary of founders and team members

You can never learn how to create a business plan for a startup without drafting some fundamental ideas and then developing the content gradually until it covers all the requirements and conveys the complete business information.

Most importantly, everything about the tech startup must be explained in detail in this section.

As for the business structure, the registration process could be tedious so it is advisable to consult experts before deciding if it is best to  start an LLC , a sole proprietorship, or a corporation.

Registering the business helps your clients to verify your business and give the assurance that it is legitimate and trustable.

Step 2. Draft an Executive Summary

While learning how to make a startup business plan, many founders confuse the executive summary with the business description.

But the truth is, it’s like the difference between the movie trailer and the movie itself!

The executive summary provides a brief overview of the business plan using short, clear, and concise language.

Although it has the same structure as a business plan, information must be demonstrated briefly and straightforwardly.

However, the executive summary must include the following key elements:

• Startup goals and objectives
• Products and services
• Targeted market and potential opportunities
• Competitor analysis
• Marketing and sales strategy
• Financial outlines

Step 3. Identify Your Target Market

The target market is the core customer base, and identifying it ensures the business is on the right track and the cost-effectiveness of marketing efforts.

Knowing the customers’ needs, motivations, demographics, and other relevant information will help determine what customers want and are willing to spend.

The following questions help in target market identification:

• Who are the tech startup customers? Their gender, age, profession, income, etc.
• Where are they located?
• What do they think? What are their interests?
• What do they like and dislike?
• What do they do for a living?
• Are they online users or offline customers?

The more details are known about the target market, the tech startup’s success chances increase, and investors will become more likely to support the business.

Moving forward, it’s time to learn about market research in detail.

Step 4. Conduct Market Research

The market research provides deep insight into the targeted audience and the startup product-market fit.

It’s one of the best methods for target market identification that eliminates the concerns about whether there is a market for the startup or not.

Instead of jumping in and dumping tons of investments on a tech startup doomed to fail, market research empowers informative decision-making based on real-life input.

This stage is especially useful if you’re thinking about selling your business after it’s grown.

Conducting market research answers the fundamental questions all tech startups ask:

• Is the product or service helpful for customers?
• Does it solve a current problem for end-users?
• Will they pay that amount of money for such a solution?

There are several methods to conduct market research, such as:

• Survey: online and offline surveys are the most used form of market research
• Use  survey templates  to streamline the process.
• Interview: an individual conversation with members of the target market
• Observation: observing the ideal customer behavior while using the product or service

Step 5. Analyze Your Competitors

As a startup, it’s essential to determine what makes you stand out from the crowd.

Competitor analysis helps to figure out market positioning by answering the following questions:

• Why should customers buy the startup product or service?
• Why wouldn’t customers buy the currently available products in the market?
• How can the startup improve the current competitor products available in the market?

Answering those questions and knowing who the competitors are, their strengths, and weaknesses will allow the tech startup founders to understand how to be unique and overcome competitors effectively.

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Step 6. Develop a Financial Plan

The tech startup business plan template usually embodies a financial projection and analysis for the first five years of business activity.

The financial plan will ensure the startup is profitable, supporting the investment’s decision-making.

It’s highly recommended to have a reasonable and realistic financial plan away from being optimistic not to mislead investors.

Moreover, there’s no need to show an exaggerated profitable projection because investors know that startups can’t make profits from the beginning.

The critical elements of a successful financial plan are:

• Capital fundraising expectations and methods
• Revenue streams to describe how the startup will generating passive income
• Human resources cost spent on staffing and development
• Major expenses in the form of predictions of mega payments
• Financial milestones to provide a detailed expansion strategy

Step 7. Consider Crowdfunding for Fundraising

It’s vital to demonstrate potential fundraising methods for collecting the necessary capital to launch the tech startup.

Crowdfunding is an efficient fundraising method, especially for innovative tech projects, and many international platforms are dedicated to organizing crowdfunding campaigns.

Leveraging fundraising software could additionally enhance and streamline these processes.

However, before raising the topic, startup founders need to check different platforms and examine their advantages to decide on the most suitable one.

Check Kickstarter vs. Indiegogo as two significant crowdfunding trustworthy platforms, and explain the reasons behind your selection in the financial plan.

Step 8. Create a Marketing and Sales Plan

No tech startup survives without sufficient marketing and sales strategies.

While the marketing strategies promotes the startup’s products and services, the sales plan provides channels that enable customers to purchase them, such as e-commerce.

This tech startup business plan section outlines acquiring prospects and converting them into buyers. It includes the following basic points:

• A well-explained description of brand awareness campaigns
• Pricing plans and potential sales channels
• Marketing campaigns and available platform

At this point, you might feel lost with all those details, and to make things easier for you, later in this article, we’ll demonstrate the most popular software for a business plan with a brief introduction for each.

Step 9. Structure Your Team

The business plan should include a team structure to assign responsibilities within a structural hierarchy.

In other words, the team structure part of the business plan explains who does what.

For example, a venture capitalist, a marketing professional, and an engineer founded LinkedIn in 2003.

Another example is Amazon, which Bezos didn’t start on his own.

Besides him and his wife, he had a handful of 21 employees to help kickstart the project; a software engineer, a catalog specialist, a merchandise website editor, an IT director, an information architect, a marketing specialist, and others on the operations side of the business.

A standard organizational structure of a tech startup consists of the following:

Board members

The members of the board of directors must be listed in the business plan.

Each one of them must be introduced by name and board position.

Additionally, provide a background including education, experience, skills, etc. Adding an appendix with the executive directors’ resumes is a plus.

Management Team

Investors will be interested in the management team and their previous experience in the tech industry. Therefore, provide a detailed description of their skills, responsibilities, and proven track record of prior work.

The startup team will consist of specialists and professionals whose respective skill-sets complement one another.

A tech startup team usually includes graphic designers, inbound marketing experts, and expert coders.

Make sure to present their professional experience and the merits of each one to convey the value they add to the business.

Following, we’ll talk about the best software for creating a business plan:

Software to Help Write a Business Plan

Business plan softwares walks users through each section mentioned above and provide expert advice about the overall document. Here is a list of the top 3 software we recommend for this purpose:

Liveplan is software that provides a modern, rich template business plan with a superior user interface, easy-to-use features, and various options.

• Create as many business plans as you want
• Utilize a vast library of 500+ business plan templates
• Export your business plans ar Word or PDF files
• Build a creative pitch executive summary
• A step-by-step practical guide for software users
• Pay $15 per month for the annual plan
• Pay $18 per month for the six-months plan
• Pay $20 per month for the monthly plan

Enloop creates simple and fast business plans. It’s dedicated to creating business plans with automated text writing, financial forecasts, and real-time performance scores.

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• Generate texts automatically and customize them later
• Generate editable financial statements
• Analyze and compare the financial performance
• Identify the business plan issues with pass and fail reports
• Utilize the 7 days free trial to test the platform
• Pay $19.95 per month for the detailed plan
• Pay $39.95 per month for the advanced performance plan

Gosmallbiz is a multiple business management tools platform.

For tech startups, Gosmallbiz is an excellent choice as it offers not just business plan making but also access to business continuity planning software to create a road map or build a website and other features.

• Many business-plan templates relevant to the tech industry
• User-friendly business plan building wizard
• Free website building tool and hosting
• Library of business documents
• Advanced dashboard for digital marketing
• Library of helpful business courses
• Pay $39 per month with no contracts and a free cancellation program

Ready to Build Your Product?

Creating a solid business plan is a crucial first step for any new tech startup.

With a solid business plan, you’ll be prepared to start building your minimum viable product (MVP) and discovering if you have a product-market fit.

Our team specializes in MVP development , taking your validated concept and efficiently bringing an initial product to market to start gathering real-world feedback.

If you’re ready to take the leap with your tech startup idea, we’d love to learn more about your business goals and how we can help.

Reach out today to chat with our startup specialists.

We offer free consultations to hear your vision and provide candid advice on the next best steps for testing assumptions, building traction-driving products, raising funds, and ultimately – growing a successful and scalable company.

Our CEO, Max, has an impressive 11-year background in SaaS development. His strong analytical skills have played a critical role in driving the company's growth and success in the highly competitive tech landscape.

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Home » Sample Business Plans » Technology

How to Write an IT Tech Startup Business Plan [Sample Template]

Are you about starting an IT tech startup? If YES, here is a detailed sample IT tech startup business plan template & feasibility report you can use for FREE . If you are a software developer or you have a background in the ICT industry and you are looking for An IT business to start, then you need to look far because there are loads of businesses in the industry and one of them is software as a service (or SaaS) company.

Software as a service (or SaaS) is an emerging paradigm business that enables software to be delivered as a service. This is an arrangement that enables companies to expand their network capacity, and run applications directly on a vendor’s network, offer a host of advantages with the most primary being radically lowering IT costs.

The lower budgetary requirements and commitments allow even smaller companies to piece together an IT project without spending on purchasing legacy server, and storage systems. However, due to the technical nature of this business, it would be wise to consult with a business consultant before starting off.

If your business concept is a great one, the business consultant would offer you tips and suggestions on the way forward. Below is a sample IT tech startup company business plan template that can help you successfully write your own with little or no stress.

A Sample IT Tech Startup Business Plan Template

1. industry overview.

An IT technology company (often tech company) is a type of business entity that focuses on the development and manufacturing of technology products, or providing technology as a service. “Technology”, in this context, has come to mean electronics-based technology. This can include businesses relating to digital electronics, software, and internet-related services, such as e-commerce.

For the purpose of this business plan, we will be looking at software development as a service. Software as a service (or SaaS) is part of the Business Analytics and Enterprise Software Publishing industry and players in this industry consist of companies that are into ERP software, bi software, crm software, scm software and other software development and they may decide to strictly adopt the Software as a services (SaaS) Business model.

A recent report published by IBISWorld shows that the Business Analytics and Enterprise Software Publishing industry has grown steadily due to favorable demand conditions caused by high corporate profit and investment. Over the five years to 2018, industry revenue rose at an annualized rate of 7.1 percent, driven by businesses’ increased technological complexity and the eagerness to adopt efficiency-enhancing software.

The report also shows that many industry products, such as customer relationship management and enterprise resource planning software systems, have become basic tools in the management of large companies. In 2018, industry revenue is expected to rise 2.6 percent to $55.4 billion. The world’s largest software companies have spent the past five years acquiring high-performing enterprise software vendors, cloud companies and data.

The report further states that over the past five years, the Business Analytics & Enterprise Software Publishing in the US industry has grown by 7.1 percent to reach revenue of $55bn in 2018. In the same timeframe, the number of businesses has grown by 10.0 percent and the number of employees has grown by 10.2 percent.

The Business Analytics and Enterprise Software Publishing industry is indeed a growing industry and is gaining ground in most countries of the world. Statistics has it that in the united states of America alone, there are about 2,869 registered and licensed business analytics and enterprise software publishing companies (Software as a services (SaaS) business model inclusive) responsible for employing about 139,347 people and the industry rakes $55 billion annually.

The industry is projected to grow at 7.1 percent annual growth within 2013 and 2018. The companies holding the largest market share in the Business Analytics & Enterprise Software Publishing in the US industry include SAP SE, International Business Machines Corporation, Salesforce.com Inc. and Oracle Corporation.

Some of the factors that encourage entrepreneurs to start their own Software as a service (SaaS) business could be the growing recognition of economic and operational benefits and the efficiency of this business model. As companies ease out gradually from the economic uncertainties and financial shackles, widespread adoption of Software as a service is in the offing.

The successful adoption of this technology concept will pave the way for mass enterprise adoption of Software as a service in the upcoming years. The transition of enterprises from virtual machines to the cloud will additionally extend the impetus required for strong growth of Software as a service (SaaS).

Poised to score the maximum gains will be end-to end cloud-computing solutions that offer complete functionalities ranging from integration of internal and external clouds, automation of business-critical tasks, and streamlining of business processes and workflow, among others.

Over and above, starting a software as a services (SaaS) company requires professionalism and good grasp of how the ICT industry works. Besides, you would need to get the required certifications and license and also meet the standard security expected for players in the industry in the United States.

2. Executive Summary

Joel Rogers® Technologies, Inc. is an IT tech startup that will specialize in offering software as a service (SaaS). The business will be based in Overland Park – Kansas and we were able to secure a well – positioned and standard office facility.

Joel Rogers® Technologies, Inc. is a client – focused and result driven IT tech startup company that is into ERP software, bi software, crm software, scm software and other software development. We will provide broad – based software development services at an affordable fee that won’t in any way put a hole in the pocket of our clients. We will offer standard and professional services to all to our clients.

At Joel Rogers® Technologies, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in the business analytics and enterprise software publishing industry in general.

Joel Rogers® Technologies, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position the business to become the leading brand in software as a service (SaaS) business in the whole of Overland Park – Kansas, and also to be amongst the top 10 IT tech startup companies in the United States of America within the first 10 years of operation. This might look too tall a dream but we are optimistic that this will surely be realized.

Joel Rogers® Technologies, Inc. will be owned and managed by Joel Rogers. He has a Bachelor of Technology. He is a certified SOC 2 – Trust (SOC 2 is designed specifically for SaaS operations) and has over 10 years’ experience working in related industry as a senior software engineer prior to starting Joel Rogers® Technologies, Inc.

3. Our Products and Services

Joel Rogers® Technologies, Inc. is going to offer varieties of services within the scope of the business analytics and enterprise software publishing industry in the United States of America. We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition.

Our business offerings are listed below;

• ERP software development
• BI software development
• CRM software development
• SCM software development
• Other software development

4. Our Mission and Vision Statement

• Our vision is to build an IT tech startup company that will be among the forerunners when it comes to offering software as a service (SaaS) in the world.
• Our mission is as an IT tech startup with bias in software as a services (SaaS) is to help a wide range of clients develop customized software that will help them simplify their businesses and operations.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard IT tech startup company in Overland Park – Kansas, we have perfected plans to get it right from the beginning which is why we are going to ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The kind of IT tech startup company we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Overland Park – Kansas as long as they are willing and ready to work with us.

Below is the business structure that we will build Joel Rogers® Technologies, Inc. on;

• Chief Executive Officer
• Programmers and Software Developers

Admin and HR Manager

• Digital Marketers (Marketing and Sales Executive)
• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Programmers and Software Developer

• Responsible for designing, installing, testing and maintenance of software systems for the organization
• Identifying areas for modification in existing programs and subsequently developing these modifications
• Writing and implementing efficient code
• Determining operational practicality
• Developing quality assurance procedures
• Training users
• Working closely with other developers, UX designers, business and systems analysts
• Presenting ideas for system improvements, including cost proposals
• Working closely with analysts, designers and staff
• Producing detailed specifications and writing the programme codes
• Maintaining and upgrading existing systems once they are up and running
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversee the smooth running of the daily office activities.

Marketing and Sales Executive

• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions as recorded
• Prepare the income statement and balance sheet using the trial balance and ledgers
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Technical Help Desk Officer

• Provide technical assistance and support for incoming queries and issues related to our software
• Identifies problems and issues by performing relevant research using the appropriate tools and by following established procedures.
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
• Consistently stays abreast of any new information on the company’s promotional campaigns etc. to ensure accurate and helpful information is supplied to clients

6. SWOT Analysis

Joel Rogers® Technologies, Inc. engaged the services of a professional in the area of business consulting and structuring to assist the firm in building a well – structured IT tech startup company that can favorably compete in the highly competitive business analytics and enterprise software publishing industry.

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Joel Rogers® Technologies, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Joel Rogers® Technologies, Inc.;

We can boast of a competent technical team that has analytical and critical thinking skills that can help them find creative solutions for our clients. Aside from the synergy that exists in our carefully selected workforce, we have a very strong online presence and we are well positioned to attract loads of clients from the first day we open our doors for business.

One of the weaknesses that is obvious to us is the lack of capacity and inability to compete with big players in the industry especially as it relates to economy of scales.

• Opportunities:

The opportunities in the business analytics and enterprise software publishing industry is massive considering the fact that the world is going the way of technology, and software as a service (SaaS) is indispensable in the value chain of the info tech industry.

Some of the threats that we are likely going to face as an IT tech startup business operating in the United States are hosting issues, installation or upkeep troubles, piracy, unfavorable government policies , and global economic downturn which usually affects purchasing/spending power.

7. MARKET ANALYSIS

• Market Trends

The advancement we are enjoying in our world today can be attributed to the advancement of technology. Technology has indeed given leverage to all aspects of human endeavor. To start with, it is the advancement of technology that landed man in the moon.

It is the advancement of technology that made communication either via the telephone or computer easier and faster. It is the advancement of technology that made transportation faster and perhaps cheaper. It is the advancement of technology that made the manufacturing of goods faster and cheaper, etc.

The technology industry is so wide and vibrant and there is still room large enough for those who are interested in the industry to come in and create their own impact. One thing is certain, the world will always celebrate any inventor who is able to invent machines or devices that can ease the process of doing things.

8. Our Target Market

We are aware that the nature of our business is geared to words serving B2B clients, hence Joel Rogers® Technologies, Inc. will initially serve small to medium sized business, from new ventures to well established businesses and individual clients, but that does not in any way stop us from growing to compete with the leading IT tech startup companies that offer software as a services (SaaS) in the United States.

As a standard and licensed IT tech startup company that offers software as a service (SaaS), Joel Rogers® Technologies, Inc. will develop software apps for the following clients;

• Financial services providers
• Insurance companies
• Businesses in the health sector
• Supply chain businesses
• Other related businesses that may need software as a services (SaaS) technology

Our competitive advantage

The level of competition in the business analytics and enterprise software publishing industry does not in any way depend on the location of the business since most companies that offer software as a service (SaaS), can operate from any part of the world and still effectively compete in the industry.

We are quite aware that to be highly competitive in the business analytics and enterprise software publishing industry means that we should be able to develop software apps that will help simplify business and operation process for clients.

Joel Rogers® Technologies, Inc. might be a new entrant into the industry in the United States of America, but the management staff are considered gurus. They are highly qualified software programmers and developers in the United States. These are part of what will count as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

We are mindful of the fact that there is fast – growing competition amongst IT tech startup companies and other players in the business analytics and enterprise software publishing industry in the United States of America and around the globe; hence we have been able to hire some of the best business developer cum digital marketers to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place; we want to build a standard IT tech startup company that offer software as a services (SaaS), that will leverage on word of mouth advertisement from satisfied clients.

Joel Rogers® Technologies, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our business by sending introductory letters alongside our brochure to all the companies, institutions and organizations within and outside the United States
• Promptness in bidding for software as a service (SaaS) contracts from companies, and organizations within and outside the United States
• Advertise our business in relevant programming magazines, radio and TV stations
• List our business on local directories/yellow pages
• Attend international software as a services (SaaS) developers related, seminars, and business fairs et al
• Create different packages for different category of clients in order to work with their budgets
• Leverage on the internet to promote our business
• Join related associations around us with the main aim of networking and marketing our services; we are likely going to get referrals from such networks.

Sources of Income

Joel Rogers® Technologies, Inc. is established with the aim of maximizing profits in the business analytics and enterprise software publishing industry and we are going to ensure that we do all it takes to attract clients on a regular basis.

Joel Rogers® Technologies, Inc. will generate income by offering the following services and products

10. Sales Forecast

We are well positioned to take on the available market in Overland Park – Kansas and in the cyberspace and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base beyond Overland Park to other cities in the United States of America and in the cyberspace.

We have been able to examine the business analytics and enterprise software publishing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Joel Rogers® Technologies, Inc., it is based on the location of our business and the services we will be offering;

• First Fiscal Year (FY1):  $300,000
• Second Fiscal Year (FY2):  $550,000
• Third Fiscal Year (FY3):  $1.5 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and internet shutdown within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the software as a services (SaaS) industry by storm which is why we have made provisions for effective publicity and advertisement of our IT tech startup company.

Below are the platforms we intend to leverage on to promote and advertise Joel Rogers® Technologies, Inc.;

• Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
• Sponsor relevant community – based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
• Install our billboards in strategic locations all around Overland Park
• Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

At Joel Rogers® Technologies, Inc. we will keep our product and service fees a little bit below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises who want to develop software apps for their business.

• Payment Options

The payment policy adopted by Joel Rogers® Technologies, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Joel Rogers® Technologies, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via mobile money
• Payment via Point of Sales Machines (POS Machines)
• Payment via check

In view of the above, we have chosen banking platforms that will enable our client make payment without any stress on their part.

13. Startup Expenditure (Budget)

These are the areas we are looking towards spending our startup capital on;

• The total fee for incorporating the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services P.O.S machines – $3,300.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
• The amount needed to acquire a suitable Office facility in a business district for 6 months (Re – Construction of the facility inclusive) – $40,000.
• Marketing expenses for the grand opening of Joel Rogers® Technologies, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The total cost for hiring Business Consultant – $2,500
• The cost for equipping the office (computers, software apps and hardware such as Application-specific integrated circuit (ASIC) machines, internet server, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $25,000
• The cost of launching our official website – $800
• Budget for paying at least two employees for 3 months and utility bills – $75,000
• Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
• Miscellaneous – $10,000

Going by the report from the research and feasibility studies, we will need about Two Hundred and Fifty Thousand US Dollars ($250,000) to set up a small scale but standard IT tech startup company in the United States of America.

Generating Funds/Startup Capital for Joel Rogers® Technologies, Inc.

Joel Rogers® Technologies, Inc. is owned and managed by Joel Rogers. He may likely welcome partners later which is why he has decided to restrict the sourcing of the startup capital for the business to just three major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.

One of our major goals of starting Joel Rogers® Technologies, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our software as a services (SaaS) a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Joel Rogers® Technologies, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Conducting Feasibility Studies: Completed
• Leasing a standard and well positioned office facility in the heart of Overland Park – Kansas: Completed
• Generating part of the start up capital from the founder: Completed
• Applications for Loan from our Bankers: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: Completed
• Recruitment of employees: In Progress
• Purchase of the needed software applications, internet server, furniture, office equipment, electronic appliances and facility facelift: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Health and Safety and Fire Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry: In Progress.

More on Technology

How to write a business plan for a tech startup

Even the greatest new business ideas could fail to get off the ground without the right launch plan. Any potential investors, venture capitalists, lenders, and potential customers want to know what your new tech business is about and what your goals are.

Do startups need a business plan? Generally, no they aren't required, but it can make it easier for investors, lenders, and customers to understand your ideas. It serves as a roadmap to how you’ll succeed, with an in-depth look at your business needs, business opportunities, and how you’ll proceed each step of the way.

A good business plan also gives you a chance to focus on all aspects of your business, spot potential problems before they arise, and make sure you’ve thought through your strategy. The right business plan can save you time and money later on.

What are the most important elements of a tech startup business plan?

The key elements of a business plan identify what products or services you’ll offer, why customers would choose your company, and who your competitors are. It highlights your goals and your strategy for accomplishing them.

Of course, there’s more to a successful business plan than the above basic elements. So what should a tech startup business plan include? Here are eight topics to include:

1. Executive summary

Think of this as your “elevator pitch.” It’s something that anyone who reads your business plan will focus on, to get an idea of what your business is about.

The executive summary should include:

• A description of your business operations, including its products and services
• Your target market and potential customers
• Your top competitors and what sets you apart from them
• Your company’s goals, both short-term and long-term
• The background and business history of yourself and your team
• Financial information, such as your investors and any customers you may have lined up

You might also include a mission statement, an identification of key stakeholders, and a SWOT analysis of your strengths, weaknesses, opportunities, and threats.

2. Company description

This should offer a more detailed explanation than what’s included in the executive summary. It outlines your business model, your day-to-day operations, your business's location, how you’ll provide value to your customers, and your business’s strengths and weaknesses.

You might also include potential obstacles and how you’ll overcome them, which new products or services you’ll offer, and your plan for product development or software development.

3. Products and services

Every product or service you intend to offer should have a detailed description of its purpose and why a customer would choose to buy it.

Think of this as the “why” your tech company will succeed and how your customers will benefit from doing business with your company. What problems do your potential customers have and how will you solve them?

4. Market analysis

Potential investors will want to see that you’ve done your homework and can demonstrate a demand for what your business will offer with a market and competitive analysis. This explores what you have to offer, how you compare to the competition, and your target customers.

Your startup’s market research should include:

• Demographic information for your target market, such as their age, income, and location
• The needs of your potential customers and how your company will meet them
• Your main competitors and an analysis of their products or services
• How your products or services compare to your competitors
• How your company will set itself apart from the competition

5. Marketing plan and sales strategy

Once you’ve identified your competitors and potential customers, you’ll need to figure out how you’ll reach those customers, spread the word about your company, and gain a competitive advantage over other businesses.

Your marketing strategy should define your marketing and sales objectives, a method for meeting those objectives, and by what metrics you’ll measure success. You might base this on sales revenue, customer acquisition, profitability, or your market share compared to your competitors after your first year.

It’s important to think realistically when setting your sales and revenue objectives. A potential investor will want to see that you’re ambitious, yet rational about your business plans. You might be better off if you under promise and over deliver in your sales objectives.

There are many items you might address in your strategy:

• How will you meet your marketing goals?
• Will you market your business internally, externally, or a combination of the two?
• When do you need to hire your marketing and sales teams?
• What marketing channels will you use? Traditional advertising? Social media (LinkedIn and Facebook)?
• Your target audience
• Your sales plan and marketing and sales budgets, from startup to product launch

6. Operational structure

This should include detailed information about your co-founders, your management team, and their qualifications and experience. It should also highlight what their roles will be within the company.

You might include an organizational (org) chart that gives an idea of how your company will be organized, with the names and duties of each team and team member. Even if you don’t have all of these positions filled, an org chart can help you plan for future hiring and outline how your business will grow.

Your operational plan could also include a hiring strategy that gives an idea of when you expect to fill each position, job descriptions for each role, and the qualifications needed for each of them. Your hiring plan could also give a salary range for each position and how you’ll recruit new employees.

7. Financial plan

Your financial plan should go beyond a simple balance sheet to explain how your business is funded, what your monetary needs will be in the future, and how you’ll meet them. It should include estimates and forecasts for the next five years.

This could be based on financial trends within your industry and projections on future revenue growth and expenses. Any investor or lender will want to see this information before they’ll do business with you.

Financial plans typically include:

• Financial statements and financial projections
• Cash-flow statements
• Capital expenditure budgets
• Pricing information
• Profit margins

You might also include an estimate on when your startup will start to break even and turn a profit.

8. Key milestones

This section should include key target dates for your business and how you’ll measure success, such as:

• When you expect to become fully funded.
• Development milestones for your products and services.
• Target dates for product launches.
• Whether you expect to go public and when it could happen.
• When you expect to become profitable.
• Your number of employees and projected staffing levels.
• Any customers or contracts you have or expect to have in the near future.

Find the right business insurance coverage for your startup

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NARRATOR: Starting a business often comes with the same or even greater risks that bigger, established businesses face. But having the right insurance coverage will protect your business from costly legal fees, repairs, and medical expenses.

There are several insurance policies you can carry that offer valuable peace of mind, and safeguard your new business.

General liability insurance covers third-party accidents, such as customer injuries or property damage.

[video: an illustrated header displays the text: "General liability covers: Slip-and-fall accidents; Client property damage; Product liability lawsuits"]

Commercial property insurance covers costs if your business property is damaged, destroyed, or stolen.

[video: an illustrated header displays the text: "Commercial property covers: Fires; Storm damage; Equipment theft"]

A business owner's policy, or BOP, bundles general liability and commercial property coverage together. It typically costs less than buying both of these policies separately.

[video: an illustrated header displays the text: "A BOP covers: Client accidents; Stolen or damaged property; Business interruptions"]

Errors and omissions insurance will protect your business from lawsuits related to work mistakes and oversights. This policy is also referred to as professional liability insurance.

[video: an illustrated header displays the text: "Errors and omissions (E&O) covers: Accusations of negligence; Missed deadlines; Errors that cost clients money"]

Cyber Insurance can help your business financially recover from data breaches and cyberattacks.

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Workers compensation insurance is required in most states and can shield your startup from work-related medical costs.

[video: an illustrated header displays the text: "Workers' comp covers: Work-related medical expenses; Disability benefits; Lawsuits from employee injuries"]

Commercial auto insurance protects your business from auto accidents involving company-owned vehicles.

[video: an illustrated header displays the text: "Commercial auto covers: Auto accident injuries; Property damage caused by vehicles; Vehicle theft and vandalism"]

Employment practices liability insurance helps pay for legal expenses if an employee sues your startup for discrimination, harassment, or wrongful termination.

[video: an illustrated header displays the text: "Employment practices liability covers: Wrongful termination claims; Discrimination lawsuits; Other violations of employee rights"]

Directors and officers insurance covers lawsuits related to decisions made by officers and board members on behalf of your startup.

[video: an illustrated header displays the text: "Directors and officers insurance covers: Lack of transparency; Mismanaged funds; Failure to comply with regulations"]

So, why is it important for you to have insurance for your startup?

[video: an illustrated header displays the text: "Why is insurance important for a startup?"]

You may need coverage to sign a contract or lease. You also might need insurance to comply with federal, state, and local laws.

[video: an illustrated header displays the text: "Startups may need insurance to: Sign a contract or lease; Apply for a loan; Comply with federal or state laws"]

Additionally, insurance protects your startup from catastrophic losses that could shutter your business. Plus, the right coverage can help you gain client trust, as well as attract top talent to your startup.

[video: an illustrated header displays the text: "Insurance can also help: During business closures; Gain client trust; Attract talent"]

Get the best coverage for your startup with Insureon today. Click the link to get started.

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Protect your investment

It takes time, money, and a lot of work to launch a tech startup. Your business plan can’t foresee every contingency, so you’ll need to make sure you’re financially protected against the unexpected.

Insurance companies look at a variety of information in setting premium rates, including your history of claims. With a new company, an insurance organization may want to see your business plan. It gives insurers an idea of what your business is about and what kind of risks you face.

The type of  business insurance you’ll need for your startup  depends on many things, though you’ll likely need general liability insurance . It’s typically the first policy for every new business. It covers common business risks such as customer injuries, damage to a customer’s property, and advertising injuries.

Beyond general liability, other policies you should consider include:

• Commercial property insurance . If you rent space for your startup, your landlord will probably require you to have coverage. This policy insures against stolen or damaged business property in the workplace.
• Commercial auto insurance . Additionally, if your business owns or leases a vehicle, you’ll be required to have a commercial auto policy, since a personal auto policy won’t cover any work-related accidents.
• Business owner’s policy (BOP) . This bundle includes both general liability coverage and commercial property insurance. It's usually less expensive than buying these policies separately.
• Cyber liability insurance . Also known as cybersecurity insurance, this policy insures you against the cost of a data breach or malicious software attack.
• Technology errors and omissions insurance (tech E&O) . This policy includes both errors and omissions insurance and cyber liability insurance. If a client claims your work was late, inaccurate, or not delivered, this policy would cover the cost of a lawsuit or settlement.
• Workers’ compensation insurance . Required in most states for businesses with employees, workers’ comp covers medical costs and disability benefits for employees who suffer a work-related injury or illness.
• Fidelity bonds . Fidelity bonds provide reimbursement for your client if one of your employees steals from them, including theft by electronic funds transfer. They're also called employee dishonesty bonds.

Having the right insurance partner can help

We can help you find the right insurance for your tech startup. Complete Insureon’s easy online application today to compare insurance quotes from top-rated U.S. carriers. You can also consult with an insurance agent on your business insurance needs. Once you find the right policy for your small business, you can begin coverage and get your certificate of insurance in less than 24 hours.

Mike Mosser, Content Specialist

Mike spent several years as a reporter and editor covering politics, crime, and the world financial markets. He’s worked for several newspapers, a financial newswire, and a monthly magazine. As a copywriter, Mike has produced SEO-based content, marketing, public relations, and advertising work for a variety of companies.

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30 Best Tech Startup Ideas for Beginners in 2024

At this point, everybody knows: tech startup ideas have high earning potential if you do things right.

But just in case you doubt it, consider that the average startup exit since 2007 has been $242.9 million . Also, consider that the tech industry is responsible for 9% of economic output in the US alone, generating a whopping $1.8 trillion.

That said, there are thousands of failed tech companies for every successful business. To increase your chances of success, you must start with a great tech startup idea because, as the saying goes, “the market always wins.”

Moreover, the tech industry has progressed beyond just software and app ideas , which means tech startup ideas are now a dime a dozen. These days, you can create a successful tech startup by combining digital savvy with knowledge of any industry at all. And the best thing: entrepreneurs are made, not born .

At the very core, tech startup ideas are like every other business idea: identify a commercial problem and develop a tech-based solution. But some tech business ideas will always be superior to others.

To help you choose the right idea for your startup, we've compiled a list of the 30 best profitable tech startup ideas for beginners in 2022.

What are the Best Tech Startup Ideas to Watch for in 2022?

1. virtual reality company.

There seems to be no apparent end in sight for the growth of the Virtual Reality (VR) industry, despite the leap in market size from $6.2 billion in 2019 to $16 billion in 2022.

And as if that weren't enough, the International Data Corporation forecasts a CAGR of 77% in the overall global spending on Virtual Reality (and Augmented Reality) from 2019 to 2023. In absolute terms, this is expected to take the market to $120 billion by 2026.

If this sounds exciting, get to work brainstorming a concept for your VR startup.

There are three main categories of VR companies: VR product companies, VR experiences, and other community-centered models. To decide the right one for you, evaluate the interest in each category in your location, find your would-be competitors in the space, and figure out a way to create a unique VR offering.

While the first thing that comes to most people's mind when they think of VR is gaming, thinking that way will only tether you to one facet of the VR industry, ignoring the several other aspects of this massive ecosystem with tremendous revenue potential.

2. Augmented Reality

AR (Augmented Reality) is a growing trend in mobile computing and business applications. AR uses technology to deliver an enhanced version of the physical world through sound, visuals, or other sensations.

The companies behind AR products offer products that allow users to virtually ‘alter' their surroundings for functional or recreational purposes.

The AR industry is quite speculative and generates a lot of buzz. Popular AR projects include National Geographic AR installations, Lacoste AR shoes, Heineken AR bottles, PokemonGO, and AR hazard mapping (commonly used in the energy and utilities industries).

Like most people, you might wonder whether anyone uses AI every day or be skeptical about its potential as a viable long-term tech startup idea. To address those fears, consider that in 2019, 68.7 million people used AR at least once daily, and this number grows with each passing day.

There's undoubtedly a massive market for AR products. To truly understand the potential in this market, simply consider the number of people who have a hard time visualizing structures, procedures, objects, and processes.

Potential users that come to mind here include medical practitioners, urban planners, architects, eLearning platforms & education, interior designers, engineers, physics, game developers, game publishers, museums, and several others.

3. Telehealth and Virtual Medical Services

One of the most significant changes in the health industry in recent years has been the heavy involvement of technology in the distribution of medical services. Many companies are streamlining their service offerings for the medical industry.

Telehealth technology has been instrumental in our gradual but sure transition from live medical appointments to virtual ones. And as more and more health appointments are carried out virtually every day, the telehealth industry will continue to overflow with untapped potential that savvy entrepreneurs can take advantage of.

You might be skeptical about the market potential or effectiveness of telehealth. But research has shown that telecalling patients can resolve as much as 80% of all primary healthcare attention.

Furthermore, overwhelming evidence suggests that telehealth is just as effective—if not more effective—than traditional care across all disciplines .

Other benefits of telehealth services include:

• cost reductions.
• shorter waiting times.
• bringing much-needed healthcare to rural or remote areas.
• quick check-ins for at-risk patients.

The hallmarks of a successful startup in the telehealth space include:

• excellent cybersecurity.
• an easy-to-use platform.
• communication channels that allow seamless, stress-free correspondence between healthcare industry professionals and their patients.

4. E-commerce

While e-commerce has been around for quite a while now, it still has much growth potential. Shopify reports that e-commerce sales are projected to hit an incredible $7.391 trillion globally by 2025. 

Naturally, this bears far-reaching positive implications for enterprising individuals who want to launch their own tech startups. It means that e-commerce is here to stay and is well worth considering as one of the best tech startup ideas.

One thing that makes e-commerce such an attractive option is the low barrier to entry. You can start an e-commerce business quite easily from the comfort of your home with just a laptop, an internet connection, and products to sell.

But what if you don't have a product to sell ? No worries; there's always dropshipping , an e-commerce fulfillment model that allows you to sell products you don't own or ever have to handle yourself.

Moreover, e-commerce platforms like Shopify , Squarespace , and Bigcommerce make it easy to build your e-commerce website without writing code . And marketplaces such as Amazon make it so that you don't need a website to start your own e-commerce business.

To snag a larger piece of the market for yourself, you can invest the time and effort to create your own e-commerce platform or marketplace —although this business model will mean competing directly with deep-pocketed online shopping giants such as Shopify, BigCommerce, and Amazon.

To avoid such competition, you can focus on a niche market rather than a broad one.

In all, no matter how many e-commerce tech startups emerge today, there are still a lot of opportunities in the space.

5. Edtech Startup

Off the back of an educational revolution spurred by the need for self-paced, hyper-focused learning materials designed to get busy professionals up to speed with specific skills in record time, online learning platforms have seen a recent boom in profitability, even though the industry has existed for quite a while now.

From full-time students to employed professionals, many look for adaptable educational solutions that suit their peculiar lifestyles. Edtech startups are stepping up to the plate and taking ownership of the problem, and the VCs are taking notice.

In 2021 alone, VC investment (venture and equity financing) in edtech startups reached a whopping all-time high of $20 billion , indicating strong faith in the potential of this major growth industry.

Besides institutions, schools, and other academic establishments taking their entire business online, many other organizations have already begun to design their own online training curriculums.

Another contributing factor is the boom in demand for online coaching services, demonstrating the vast opportunities for edtech as a tech startup idea.

There are several valid approaches to launching an edtech startup, including using AI, big data, and blockchain to make learning more accessible and enhance the overall experience.

The Norwegian University of Science and Technology defines biotechnology as “ technology that utilizes biological systems, living organisms or parts of this to develop or create different products .”

One reason biotechnology startups gain such wide acclaim, publicity, and support from investors and governments is their focus on improving the quality of our lives as humans.

This technology startup idea is more specialized as the strict governance policies of anything related to medicine make entering and navigating the biotechnology space challenging. So, while you surely don't need to have it, a background in the medical industry will make it a lot easier for you.

When a startup makes a breakthrough, its investors, entrepreneurs, and executives reap massive payoffs. And for many, the massive upside potential is worth the immense challenge they face along the way.

One thing about this industry is the need to be hyper-solution-focused. This must be your first consideration before getting into this startup niche.

7. Cybersecurity

If you've ever wondered how cybersecurity firms make money or why they even exist in the first place, consider this: everything we do these days—from hiring handypersons to banking—can be done online, and cybersecurity firms work behind the scenes to ensure our safety online.

The cybersecurity market is projected to hit $352.25 billion by 2026. This should help you understand just how important and potentially profitable this tech business idea is.

Cyberattacks are a real and present threat, and recent times have seen privacy concerns becoming top of mind for many organizations and individuals.

In the technology-driven era in which we live, all our information is in digital form, and there's pervasive concern about personal data falling into the hands of bad actors .

Moreover, we've seen an increase in the number of scams, ransomware, and malware all over the globe, further calling for more foolproof data protection measures.

As a cybersecurity consultant, your role is to evaluate your customers' security systems, run tests to verify their integrity, and offer advice on improving their defense against cyberattacks.

Trust is an essential ingredient for success as a cybersecurity startup. You need customers to trust you not just with access to their data and private information but also to choose you over the competition to safeguard their data.

This can be especially difficult for a cybersecurity startup since incumbents dominate the space.

8. Drone Company

Next up on the list of the best tech startup ideas is starting a drone company. From launching a drone photography and videography service to building custom drones, this industry presents diverse opportunities that any savvy tech entrepreneur can take advantage of.

Of course, the right business model for you will depend on available investment capital, your particular skill set, and the demand in your locale.

If you're handy with a camera and own a drone, then a drone photography service might be the way to go . There's an installed base of customers who regularly require such a service, from residential real estate agents who require aerial shots of properties to events and agriculture.

You can get on real estate platforms like Zillow and Redfin to find real estate agents in your area. Then reach out and pitch your services to them.

Drones are also now widely used in surveillance, and these days, there are even professional drone racing competitions with large cash prizes up for grabs.

9. Cloud Technology

As more people work remotely, there's an increase in the demand for cloud services , which makes starting a cloud technology company one of the smartest technology business ideas.

To start a cloud technology company, you'll need to invest in hardware—that is, servers—and software—that is, a hosting control panel. You'll also need to invest in marketing to find new customers and get them to trust you enough to store their valuable data.

This is only natural as data has become increasingly valuable, and rampant breaches have increased privacy concerns and regulatory scrutiny of data management practices. Companies must be careful about data handling and ensure the security of the data entrusted in their care .

10. Artificial Intelligence Company

Artificial intelligence (AI) encompasses technologies such as natural language processing, machine learning, computer vision, and many more.

In recent times, AI has moved from being the stuff of imaginative sci-fi stories to becoming an important part of our day-to-day lives, with the technology becoming increasingly sophisticated as its market potential grows.

As a rapidly growing industry in the tech ecosystem—the sector grew by 154% in 2019 alone—this tech idea offers myriad opportunities for tech-savvy entrepreneurs.

As AI becomes more common, you must develop innovative offers and ideas that challenge the status quo and set you apart. Consider the daily problems individuals and organizations face and develop unique solutions to them using AI.

11. Video Games

Did you know that the global game industry is larger than the Hollywood and music industries combined , with a whopping 2021 revenue of $108 billion ?

It's safe to say that there is a massive market ready to buy your product, but the catch is that your game must be unique enough to stand out in the crowded marketplace.

Even if you only have an idea and no development skills, you can partner with a game developer to bring your idea to life.

Virtual Reality (VR) offers a whole new world of massive opportunities for the gaming industry. And as we enter the age of the metaverse, the collaboration between the gaming and VR industries will produce even more incredible opportunities.

12. Fitness Technology and Smart Accessories

It's no secret that technology has applications in practically every industry, and the fitness industry is not left out. Startups such as Strava, Peloton, and FitBit have already disrupted the way people exercise, and as time goes on, we're bound to see more innovation.

The fitness tech and smart accessories spaces show promise of continued rapid growth in the future. The market constantly needs new gear and technology, from wireless earbuds to fitness trackers and smartwatches with extensive functionality.

Especially in recent times, this niche has expanded beyond physical products to include digital products such as apps, media, and data that combine physical and digital products in creative ways. If you can marry a high-tech physical product with an app or other media relevant to your product, you'll set yourself up for massive success.

To succeed with a smart accessories startup, you must pay special attention to user experience.

13. Robotics Company

Robotics is a vast field that includes elements of computer science, mechanical engineering, electronics engineering, information engineering, and several other disciplines.

This field aims to create machines that move and react to sensory input, possibly even autonomously. The industry is projected to grow at a CAGR of 10% to hit annual revenues of $40.56 billion by 2028, all the way from $42.92 billion in 2018.

This isn't the kind of business you can start without a fair amount of personal experience or a Rolodex of seasoned engineers . But starting a robotics company can be a promising opportunity if you have these things going for you.

Start by assessing the problems that you could solve with robotics, then design products that meet these needs and fulfill those wants.

14. Autonomous Transportation

A subset of robotics, autonomous transportation was once the stuff of sci-fi books and movies.

But as the day wears on, we're getting closer and closer to true self-driving cars. We see them in our daily lives, and several city governments are already working to incorporate this technology into the public transportation systems.

A startup in this niche will require some experience or access to a network of experienced engineers . If you can somehow make it work, this tech startup idea has massive potential for profits.

15. Smart Home Technology

The market for smart home technology has seen a massive boom as people look for tools and ways to streamline their lives.

Smart home technology startups provide their customers with products that simplify everything from listening to music to charging their phones.

The key to success in this industry is to find the most innovative ways to automate everyday tasks at home and pursue automation to the point where your system requires next to no human interaction.

16. Streaming Service

Get this: as of May 2020, 62% of adults subscribed to streaming services. In 2022, music streaming services recorded 524 million users, while video streaming services recorded some 1.8 billion users, a total of over 2.3 billion users .

That's a huge market you could be tapping into by establishing your very own streaming service. If you're skilled at curating content around a specific genre of media, film, or music, you can find a niche whose needs are currently not being met and create a streaming service startup to meet those needs.

17. Legal Tech Startup

The legal system should be one of the easiest spaces to navigate when it comes to finding information, but that's often not the case. This is where legal tech startups come in. They seek to make policies, case law, and regulations easier to access.

With the various branches of law practiced today, this space is open to anyone with a keen enough interest to start a company.

18. Content Automation

Content is king. Most people create content regularly through social media platforms, whether they realize it or not.

Many seek ways to automate this content, but as soon as they find one way that works, technology changes, and they're right back where they started because the solution isn't viable anymore.

This is the problem that content automation startups aim to solve. Content automation startups seek to create viable, innovative solutions to the pains experienced by content creators.

As content and social media play an increasingly large role in many businesses' marketing plans, content automation software will continue to be a great opportunity for tech entrepreneurs.

Many businesses have accounts on several social media channels, from Instagram and Facebook to TikTok and Twitter. Each channel requires a different content planning, production, account management, and analytics approach.

Despite this glaring opportunity, there still isn't a widely accepted tool for omnichannel management, promotion, and analytics. You can create an all-in-one hub through which a social media marketer can manage and promote their accounts and analyze performance from a single dashboard more conveniently and efficiently.

19. 3D Printing

Here's another underrated tech startup idea: 3D printing. From applications in construction to human organs for transplantation, the 3D printing industry is steadily creeping into many sectors that require precision-crafted parts.

Now is a good time to get into this emerging industry as we've seen 3D printing costs go down in recent times. But having a 3D printer is not enough. You need to acquire expert knowledge before starting and be willing to advertise your services to attract customers to your tech company.

20. Portable charging devices

The portable phone charging industry has seen a boom in recent years as we've grown to be increasingly reliant on our mobile devices. Our mobile phones go everywhere with us, but it's still a far too common occurrence to have them die on us.

BCC Research published data that revealed that the portable phone charging industry is expected to grow by 6.6% annually from 2017 to 2022, going from $18.1 billion to $25 billion.

This rapid growth is driven by the fact that many newer phone models come with lower built-in battery capacity or higher power requirements without a corresponding increase in battery capacity.

With growing urbanization, increasing mobile phone penetration, and rising disposable income levels, the portable charging devices market will only grow larger as time passes.

Add to that the increased penetration of electronic gadgets that drain batteries faster, and you have a recipe for truly limitless market potential.

21. Health Tech

In recent times, there's been an increase in health awareness worldwide. Millennials and Gen Zs are more conscious of their health and are choosing to be intentional about leading healthier lives.

As a result, there are now many software products and mobile apps designed to help them on their journey. And you can also take advantage of this growing trend by launching your own health and wellness product.

With the right business plan, this area promises high scalability and bountiful profits for aspiring tech entrepreneurs.

22. Business Incubator

A business incubator provides everything tech startups need to grow, from funding to office space . If you have an ideal location and the ability to provide services to budding CEOs, you can start your own business incubator for tech startups.

You'll need to provide amenities such as electricity, office space, and internet connectivity. As with most other businesses, you can start small and grow along the way.

23. Natural Language Processing (NLP) Startup

NLP is a branch of artificial intelligence (AI) that aids machines in comprehending human language. It is frequently employed in tools like grammar and spelling checkers.

There has never been a better time to enter this field if you've ever thought about doing so. A wave of startups is emerging due to the availability of open-source NLP software.

NLP was developed over several years, but it wasn't until 2018 that AI researchers demonstrated that you could train a neural network once on a significant amount of data and use it repeatedly for various tasks.

Last year, a veritable ‘Cambrian explosion' of NLP startups and Large Language Models occurred. Google unveiled LambDa this year, a big language model for chatbot programs.

Then Deepmind unveiled Flamingo, a language model with visual comprehension, and later Alpha Code.

Just in July of this year, Meta announced that they had trained a single language model capable of translation between 200 languages, and the Big Science project released Bloom, a sizable open-source language model.

We are now at a point where many more commercial applications of NLP will start to appear.

Some of these applications will use open-source, publicly accessible platforms. It's almost like a startup gold rush to capitalize on this technology, and the major language model providers are getting into an arms race.

24. Non-Fungible Tokens

The emergence of non-fungible tokens (NFTs) has given those working in the startup sector a significant opportunity to access new revenue streams.

NFTs can be used to develop new business models, increase the utility of current goods and services, expand their market reach, and gain access to completely untapped potential customer markets.

NFTs are now being used by contemporary businesses in their marketing strategies, and the results are impressive.

Charmin, an American manufacturer of toilet paper, released several NFTs on the NFT marketplace Rarible in March 2021. In the same month, the highest bidder bid over $2000 for one of the artworks.

The entire “Transformative Taco” NFT collection from the fast food chain Taco Bell was quickly gone on Rarible.

Knowing how to make an NFT is now a requirement rather than a nice-to-have for the modern business as other major brands like Asics, Adidas, Team GB, Coca-Cola, and Nike have entered the NFT space.

25. Remote Work Software

The massive explosion of remote work in recent years is no secret.

With so many individuals and businesses now working away from a structured office environment, solutions to some of the attendant problems of remote work are required.

Software for work-from-home situations can come in various shapes and sizes, including video conferencing and communication platforms .

Whatever issue you point out, remote employees and their employers will be appreciative of any solutions you provide.

26. Online Job Boards

The process of looking for jobs has moved online. According to a Pew Research Center survey from 2015, 79 percent of job seekers had done online job searches, and that number has probably gone up since then .

Job boards are frequently consulted when people conduct online job searches. Employers who have open positions post them on online job boards.

Unlike job search engines, job boards don't typically gather listings by looking through other websites. Instead, a manager or employer enters listings themselves. By doing this, listings are made to be precise, pertinent, and short (i.e., no duplicates).

IBISWorld estimates that online job boards generate $4 billion annually and are expanding at an average rate of 14.6 percent in the United States . Online job boards that identify profitable niches have a lot of potential.

27. Internet of Things (IoT)

There are many names for the rise of the Internet of Things (IoT), including The Next Industrial Revolution, Industry 4.0, and The IoT Apocalypse.

The startups in this field are diverse and concentrate on tying together different products from various industries.

You might have an idea for an IoT startup if there is an application of IoT that will solve a problem in your industry.

No matter how you feel about the IoT's future, most people agree that it will be a disruptor in every sense. This isn't just true for Silicon Valley and tech companies.

Entrepreneurs are eager to start their own Internet of Things businesses. But in terms of comprehending the implications, if IoT were Mount Everest, we're still at base camp . Future IoT product offerings from each startup will vary, but there are some fundamental issues that need to be addressed.

First, apply design thinking when developing products . Using design thinking, you can identify a need that justifies an IoT product rather than hoping your product will create a need.

Second, understand that scaling an IoT business differs from scaling any other business . An IoT company's engineering for prototypes is very different from engineering for scale. People assume that if a tiny ant could lift 50 times its own weight, a human-sized ant would be able to do the same. But this is simply untrue.

Third, don't underestimate the importance of security. A Gemalto report shows that only 33 percent of survey respondents believe they have complete control over the data their IoT products collect. Each connected device represents a new “door” a hacker could break down. You must make security a priority from the beginning, even in early development.

28. Blockchain Startup

Blockchain technology facilitates the quick and easy exchange of data and transactions between individuals, businesses, and applications. A blockchain-based tech startup could essentially target any sector.

What do blockchain statistics indicate: which industry uses this tech the most?

The financial industry has the largest share of 46%, followed by manufacturing (12%), utilities (12%), healthcare (11%), government (8%), and retail and consumer (4%).

(Source: comparecamp.com)

The greater use may indicate better startup opportunities or, conversely, oversaturation.

Companies that want a better way to manage their projects, finances, and information can use blockchain services, which offer a public ledger. The blockchain is a technology that can be used for virtually any type of business transaction, despite being most frequently associated with cryptocurrencies.

In essence, the blockchain makes it nearly impossible to hack into a company's information, which is becoming increasingly important as virtual fraud grows.

But, more importantly, the blockchain enables unprecedented levels of communication through the use of smart contracts. These unique if/then statements are so adaptable that they can be used in industry projects in ways we can't even imagine.

If you are starting out independently, you should only need the cost of computers and internet access to develop your initial prototype . You'll also need liability insurance, which will vary in price depending on the limits you choose and the services you provide.

Finally, you should probably invest in advisors who can provide accurate information about how the blockchain is changing in the legal and public spheres.

Labor is typically the highest cost for blockchains because the business requires skilled individuals to design and sell the platform. You'll also need to factor in electricity, insurance, and the direct cost of renting office space.

Blockchains typically charge a one-time project fee or set up a SaaS model. They may also charge for transaction verification across their network.

One of the most significant advantages of blockchains is their ability to handle micropayments. These fees are typically paid in cryptocurrencies like Bitcoin or Ethereum.

29. Real Estate Tech

These days, it is not uncommon to find people living in one part of the world while working in another. As a result, the local real estate agents' ‘sold' signs on lawns no longer suffice.

Consumers looking for real estate, whether for rental or purchase, want to complete the entire process smoothly and preferably online, so any real estate tech startup that solves a problem along this continuum has a chance of success.

Regarding market opportunity, the potential for technology to transform the multi-trillion-dollar real estate industry has barely been scratched . This is especially true for commercial real estate, which has historically lagged behind residential in terms of technology adoption.

30. Data Analytics Startup

Starting a data analytics business could be a wonderful tech business idea if you have experience working with numbers and identifying patterns that indicate trends. The data industry is rapidly expanding, so get in early to stay ahead of the game.

Data is a commodity in almost every industry, and how that data is used often determines the difference between mediocre and massively successful businesses. Effective data analysis is an art that requires a combination of technology and human participation. Startups in this space can focus on various industries, as each has requirements for what they want to achieve with data analytics.

A data analytics firm converts raw data into meaningful information. This procedure is frequently referred to as “storytelling.” Data is organized to tell a specific story about a problem, process, or campaign. The analyst's job is to translate this story compellingly and clearly.

Data analysis startups frequently collaborate with entities and individuals who already track data. They must determine what the numbers mean once they have them. (Why do winter sales always fall? Will a decrease in tourism affect our bottom line? Do employees perform better when they get more vacation time?).

Data analysts help organizations better understand what's working, what's not, and where there are opportunities to improve by taking raw data and identifying patterns.

You'll need a dependable laptop as well as data analytics software . Tableau is a popular option that starts at $70 per month, whereas Zoho Analytics starts at just $22 per month. Other platforms, such as Looker and InsightSquared, provide customized quotes based on your specific needs and situation.

While you could certainly use a program such as Adobe Illustrator to create your data visualization sets , programs such as those listed above are designed to help organize, mine, and interpret data, in addition to visualizing it.

Recommended Articles

For more on profitable business ideas, check out the following articles:

• Lucrative online business ideas you can start on the side
• Best small business ideas to make money online
• 33 Genius Startup Pitch Deck Examples and What You Can Learn From Them
• Most successful small business ideas for beginners in India
• Best business ideas in rural areas in India [village business ideas]
• Business model canvas for validating your startup idea fast
• Best side business ideas for women
• Lucrative website ideas for an online side business
• How to start a consulting business

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Anastasia belyh.

Anastasia has been a professional blogger and researcher since 2014. She loves to perform in-depth software reviews to help software buyers make informed decisions when choosing project management software, CRM tools, website builders, and everything around growing a startup business.

Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software.

Tech Startup Business Plan

Many of us have this wild dream of becoming a hot-shot CEO with a cup of overpriced coffee on one hand and the latest smartphone on the other, but to get there, you still need to start fresh. You may also see  business plan outline with examples .

• Business Plan Outline with Examples
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Having a good business idea is one thing, but turning this vision into a reality is another matter that many individuals refuse to invest on when the struggles they need to go through become known.

Technology Startup Business Plan Template

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Tech Startup Business Plan Example Template

With the many opportunities and promising business ideas to choose from, business owners are starting to recognize what technology can offer them not just for personal use, but as a corporate investment as well.

Amidst the likes of Apple, Samsung, and Sony comes the wide variety of tech startups emerging in the marketplace at rapid speed. So in this article, we discuss what it takes to become a successful tech startup with the help of a simple business plan .

Tech Startup Business Plan Template

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Educational Tech Startup Business Plan Example

What Is a Tech Startup?

With the wide use of technology being more prominent now than ever, many tech startups are making the attempt to make a breakthrough in the competitive market with their innovative (and sometimes peculiar) product and service offers for consumers to enjoy. You may also like  business plan guidelines examples . A tech startup is a company whose purpose is to bring various forms of technology-based products and services to the market. These companies are set to deliver a wide range of new or existing technology products or services in a variety of ways.

They come in the form of a company, a partnership, or a temporary organization that is designed to search for a repeatable and scalable business model to launch. With technology being an essential factor of our day-to-day lives, startups aim to bring innovativeness, scalability, and growth through their creations. Though it might be a while until robots and artificial intelligence completely replace manual labor, we can expect a lot from these promising tech startup ideas, especially those with an exceptional business plan in place. You may also see  business operational plan examples .

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10 Essential Elements of a Tech Startup Business Plan

Every tech startup is different, with each company specializing in one thing that’s fairly different from the other. But if there’s one principle that every startup company needs, then it’s the universal wisdom of experience. You may also like to learn  how to create a business plan . Truth is, many companies have attempted to try new things but failed while at it. Others have pivoted and re-branded hoping to get another shot with investors and clients, only to come out empty-handed.

Transforming your big idea into a revenue-generating reality can be a daunting experience of disappointments and rejections. But then again, in order to succeed in business (and life in general), you need to learn from these experiences to come out a million times better. The following items explain what makes a tech startup successful and the factors that you need to keep in mind when constructing your business plan :

1. Think Highly of Yourself.

This may sound like an egoistic move, but don’t take it the wrong way.

As a startup business, it wouldn’t hurt to pretend you’re a lot bigger than you actually are. They say that this can attract the type of energy you hope to achieve. Acting like a bigger company will also allow you to grow into the efficiencies it gives you. It also requires you to work just as hard as the big dogs do. Not to say you’re prohibited from having a fun work environment, as you do want to keep employees happy for them to stick around long enough for the company to prosper, but insisting on a disciplined execution will definitely keep the business afloat. This will make it easier to partner or collaborate with other successful brands who might just offer you your big break. You may also check out  market analysis business plan examples .

2. Choose the Right Partners.

As a startup founder, choosing the right partners to complement your skill set and realize your vision is crucial to corporate success. Partnerships can be a tricky business, especially when it has become so easy for offshore or outsourcing companies to squeeze the money out of a vulnerable (and rather gullible) startup. It’s best to do your research on existing companies and startup founders, preferably those who have been a part of a successful company in the past, before you engage in a potential deal. You may also see  network marketing business plan examples .

3. Create a Software-as-a-Service (SaaS) Plan.

You know how TV shows come out with pilot episodes first before they can release an entire season of the show? With the same concept in mind, experts believe that it’s always best to start selling parts of your product before completing a full platform. Getting market validation early on in your startup’s growth stage will give an idea of what your target customers are looking for in a product or service. This will also help you start building revenue as you continue to understand how the entire process works. You may also like  how to make a business plan .

They also believe that while a good business idea is important, so is the way it is presented to investors and clients. Allowing your prospects to see your capabilities will work wonders for your startup along the way. You may also check out  importance of business plan .

4. Go for the Standout Pitch.

It’s always hard to make a pitch with a potential investor. With the dozens of business ideas that come their way, standing out from the “good” and the “pretty good” is crucial to getting noticed. Your pitch with a prospect will only end with one of two ways: you either get accepted or declined. Naturally, getting accepted is the only thing that matters most. You might be interested in  free business plan examples .

Since it may be difficult to identify the things that you should do and should not do for your pitch, it’s a good idea to speak with entrepreneurs with businesses that did not make it. It’s easy to focus on the successes, but not many seem to recognize the value of failures as well. This provides you with enough insight regarding how and why a company or an idea did not make the cut. You may also see  bookkeeping business plan examples .

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5. Prepare to Be Rejected.

You’ve probably heard this a thousands times before, and it couldn’t be emphasized enough. Rejection will always be a possibility, but just because a couple of investors have said “no” to you before, don’t use this as a reason to give up.

Getting the first check is the hardest, which is why many successful business owners suggest to spend the time building VC (Venture Capital) relationships before funding, and to continue networking until you have secured the necessary funds. The rejection will definitely take a toll in your spirit and drive to move forward, but you need to learn to get back up and rise above the negativity for a better and brighter future. You may also see  hotel business plan examples .

6. Keep It Innovative.

There should never be a reason to stop building. You can always turn a “good” idea into something “great.” And even if it feels like you’ve reached the peak of greatness, there will always be room for more improvement.

Take tech giant Apple as an example. Even when people thought that the Touch ID of the iPhone 5S was a phenomenal feature, Apple released a facial recognition feature through Face ID which was specially designed for the iPhone X. The system was designed just a few years after the Touch ID, which proves just how the company continues to uphold the value of innovation through their products. You may also check out  advertising and marketing business plan examples .

7. Aim for a Deliverable Product.

Startup founders tend to be optimistic and idea-driven, yet, they can’t seem to confine to the status quo. Though adapting to market demands is also important, picking a single area of innovation and focusing on a product that’s better than anyone else’s is key. You need to make sure you’re moving toward the right direction by understanding the exact things that your target market wants. You may also like  business plan examples .

However, you need to work quickly. Trends fade and people get bored too easily. If you want to prosper, start delivering products as soon as you can and stay focused on making them a hit.

8. Put Pen on Paper.

Even after an investor has made a vow to work with you, you still need to put it in writing. Contract documents  are a real thing, and you need to be responsible for them. This goes both ways in your professional relationship, as you’d want to make your counterpart feel comfortable to work with you, and you need to be able to trust that these prospects would stick to their word.

Though creating these formal documents may be pricey, it’s definitely worth the spend to guarantee long-term business relationships.

9. Be Careful with Cryptocurrency.

You might have heard about various prediction market platforms and forecasting tools that have allowed users to foresee the outcomes of real-world events, as well as buying and selling shares through smart contracts. You might be interested in  simple business plan examples .

While building on blockchain or relying on cryptocurrency may seem like a promising venture, you’d still want to sketch out a full architecture of your plan, challenge it, and then build it.

10. Plan for the Long-Term.

Even with the potential risks and challenges that may cause your business to fail along the way, you still need to be optimistic enough to plan for the long-term. Investing in strong talent and developing a culture for your business to thrive on will help build a solid foundation for your startup. This will also pave the way for many opportunities, leading your business to the right direction. You may also see  bar business plan examples .

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How to Write a Business Plan for Your Startup

Anyone can have a great idea; in fact, you can ask a 12-year-old for a business idea and they’d probably give you something more imaginative than what any other 30-year-old could offer. But transforming this idea into a viable business is a different ballgame you wouldn’t want to mess up. You may also see  e-commerce marketing plan examples .

So if you’re hoping to launch a tech startup anytime soon, here are a few tips on how you can create an effective business plan:

1. Have a clear objective.

Set a clear objective that’s anything but ambiguous. You need to be specific about what you hope to achieve. Since starting a business requires you to offer a solution in order to address a problem, your business plan should identify who you are and what you aim to do. You must also state the kind of products and services you’ll be offering and in what industry for a more specific approach. You may also see  convenience store business plan .

2. Identify your target audience.

Although your products and services will be made available for the general public, it isn’t exactly designed for everyone. Some tech startups create products for other businesses, while others cater to buying customers of a specified demographic. Knowing who your target consumers are will help you determine every detail of the product, its ideal market price, the right distribution channels, as well as your promotional strategies. You may also see  business checklist examples .

3. Study your competition.

Another important factor to include in your research is your competition. You need to remember that as a startup, no one knows about you, let alone care that you exist. With so many direct competitors in the marketplace, standing out is a definite must. Figure out what makes you different from other existing companies, and you can go from there. A SWOT analysis may also be used for proper assessment.

4. Budget properly.

Running out of cash is one of the primary reasons why many businesses fail. You might start out with a million dollars in capital, but be down to your last thousands after a year or two. When this happens, your business is at risk of closing and filing for bankruptcy. This is why it’s important to take the time to budget accordingly to help minimize the risk. You may also check out marketing strategy business plan examples .

5. Define your power structure.

Running a tech startup can never be a one-man show. You need to have a reliable team of staff members to manage each department of the company, including your accounting, marketing, operations, and HR sectors. This doesn’t have to be too complex, as new businesses usually start small before they begin expanding. You may also see  digital marketing plan examples .

Launching a startup company can be an exciting experience for any ambitious entrepreneur. However, it’s easy to rush into things and wind up regretting your wrongful decisions. So before anything else, always remember to write a good business plan to launch your company on the right foot. You may also like  business plan examples in PDF .

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25 Tech Business Ideas for 2022

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If you’re looking to start a business with high earning potential, you’ve probably looked into some tech business ideas.

And why wouldn’t you? In 2019, the estimated economic output of the technology industry was $1.8 trillion, comprising over 10% of the national economy, according to CompTIA. What’s more, the average successful startup exit (via either acquisition or IPO) has sat at $242.9 million since 2007.

However, for every successful startup exit, there are hundreds if not thousands of startups that have failed. So if you’re an entrepreneur hoping to hit it big in the technology sector, you need to start with a strong tech business idea.

In an industry defined by innovation and disruption, what constitutes a “good” tech business idea is constantly changing. That’s why we’ve compiled a list of tech business ideas that are poised for extreme growth in the coming years.

What is a tech business?

Tech businesses provide products and services that have applications across multiple industries — but at their core, they pertain to the research, development and distribution of technology-based goods. This includes businesses that manufacture electronics (like Apple), create software (like Salesforce), provide services relating to information technology (like Google) and more.

The best part about our technology business ideas is that they don’t require a lot of overhead—you can start small and grow over time. However, you will need some level of technical knowledge to be able to successfully start a business in the industry. If you don’t have any tech experience, consider starting with a coding bootcamp.

Here are some of the top tech business ideas, including some recommendations from tech entrepreneurs themselves.

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1. Food tech

Our first recommendation comes from Phil Strazzulla, founder of HR software company SelectSoftware. Strazzulla sees the food tech sector as a major growth industry in the coming years:

“Companies like Beyond Meat are just the beginning of businesses engineering eco-friendly and healthy food that is as delicious as our current diet. The science is now there, and the market for next-generation food is literally in the trillions of dollars, and it grows just as quickly as the world's population.”

2. Web design

One tech business idea that will never go out of style is website design. That’s because pretty much every business needs a professional-looking website in order to appear reputable and build their brand.

Web design encompasses a range of different services, including graphic design, interface design, copywriting, UX design, and SEO. According to IBISWorld , the web design business has grown at a rate of 6.6% over the last five years, and generated $38 billion in revenue in 2019, meaning you can rely on there being a market for this tech business idea for years to come.

3. Extended reality

Extended reality technology encompasses both augmented reality, or AR, and virtual reality, or VR, technologies. Kenny Trinh, editor of tech review publication Net Books News, sees extended reality technology proliferating in the coming years.

"In 2020, we’ll see more and more businesses applying extended reality to their brands to stand out from the competition and deliver a better customer experience,” says Trinh. “In fact, some businesses have been doing that already.”

Trinh points to the eco-friendly water packaging project W-in-a-Box, which uses AR to further explain the benefits of their product.

4. Robotics

Robotics is a bit of a catch-all term that encompasses mechanical engineering, electronic engineering, information engineering, computer science and other related disciplines. The goal of robotics is to create machines that can move and react to sensory input. According to Statista , this industry is expected to grow from $80 billion in annual revenue in 2019 to over $200 billion in annual revenue by 2025.

5. Customer experience management, or CXM

Ian Kelly, VP of operations for a CBD oil company called NuLeaf, believes customer experience management platforms like ZenDesk will soon make customer relationship management platforms, or CRMs, obsolete.

"While a CRM can help you manage customer details, a CXM unifies all sales, marketing and customer service conversations into a single silo so that your customers are treated like the loyal fan-base they are,” says Kelly. “No more hitting your customer over the head with repeat promos, selling them on services/products they already have or letting them slip through the cracks when they've bought and never been properly onboarded.”

6. Influencer marketing

Influencer marketing is an industry enabled by social media platforms like Instagram involving endorsements and product placements from individuals or organizations who possess a certain level of expertise or social influence in their respective fields. While not just anyone can be an influencer, if you possess some level of unique knowledge or a lot of charisma, you can launch a business by gathering a social media following and hiring an influencer marketing agency to connect you with brands.

On the flip side, you can also launch a business focused on connecting brands with the right influencers for their products and mission.

7. Content automation

With content and social media becoming an ever-growing part of many businesses’ marketing plans, Gleb Myrko, an analyst at the market research firm Freedonia Group, believes content automation software presents a great opportunity for tech entrepreneurs.

"Businesses today have accounts on all different social media channels like Instagram, Facebook, TikTok, etc. All of these channels require different approaches to content planning, content production and account management and analytics,” says Myrko. “There’s still not a widely applied tool for omnichannel management, promotion and analytics for the most popular social media. We need an all-in-one hub where marketers can analyze data/performance, as well as manage and promote their accounts on different social media channels in a more centralized, convenient and effective manner.”

8. Artificial intelligence

The term “artificial intelligence" is used to describe technologies pertaining to machine learning, computer vision, natural language processing and more. Although artificial intelligence is a technology that has been around for quite some time, as it becomes increasingly sophisticated, its market potential is growing as well.

Statista reports that the industry grew by 154% in 2019 alone—making it a great tech sector to build a business around.

9. Podcasting

If you’ve been paying attention to innovations in content over the past few years, you’re probably aware of the exploding popularity of podcasts. Today, 51% of the U.S. population has listened to a podcast, and podcaster Dre Baldwin sees podcasting’s prospects only increasing in the coming years.

“Entrepreneurs need to start building their podcast content library ASAP,” Baldwin says. “More and more people are consuming media on the go; audiobooks and podcasts are at the forefront of this. Any entrepreneur or business entity that wants the attention of consumers needs to be in their ears, literally.”

10. Streaming service

Services like Netflix and Disney+ get most of the attention when it comes to streaming services, but there is plenty of opportunity to start a streaming service for more niche content. For example, you can create a streaming service where users can upload instructional videos or a streaming service designed specifically for children’s content. You could also develop a platform for live streaming (like Twitch) or streaming music (like Spotify).

The global outlook on the streaming service industry is overwhelmingly positive. In 2019, streaming services generated $25 billion in revenue. By 2025, that number is expected to rise to $30 billion, according to Statista.

11. 3D printing

One of the more exciting technologies developed during the 2010s is 3D printing, which allows users to build a three-dimensional object from a computer-aided design model. Shayne Sherman, CEO of TechLoris, believes 3D printing will have increased importance in the next decade as the technology continues to become more sophisticated.

"There will always be the need for production companies, but just as the advent of the assembly line changed production, so too has 3D printing,” Sherman says. “The ability to manufacture whole components in single pieces has created a serious demand, especially in the medical fields. This demand means that 3D printing companies are set to grow exponentially, and if you can get into the business, it's a solid choice for the coming years.”

12. E-commerce

E-commerce is another technology that has been around for a while, but still has growth potential. Over the last year, Statista reports that e-commerce sales grew from $500 billion to nearly $550 billion.

If you have a unique idea for an e-commerce store, you can launch your own e-commerce business from the comfort of your home. No product in mind? Not to worry; dropshipping allows you to start an e-commerce business with products you are not responsible for warehousing or shipping.

If you want to grab a bigger share of the market, you could also take the time to develop your own e-commerce platform or marketplace. Just keep in mind that the e-commerce platform space is already dominated by giants like Shopify and Amazon. Therefore, if you want to start your own e-commerce platform, we suggest focusing on a niche market.

13. Portable charging devices

Mobile devices go with us everywhere nowadays, but having your phone battery die on you while you’re out is still a far too common problem. That’s what’s driving the growth of the portable phone charging industry.

According to data published by BCC Research, the portable charging device market is expected to grow by 6.6% year over year from 2017 to 2022. Growth is driven by the fact that many newer phone models have lower battery capacity.

"Growing urbanization, rising disposable income and increasing mobile phone penetration will boost the mobile charger market around the globe,” according to the report’s author Mohammed Javed. “Increasing penetration of high-specification electronic gadgets/devices that drain batteries at faster rates will further boost the mobile charger market in the near future.”

14. Publishing e-books

An e-book is a book made available in digital form. If you’re a writer, there is a growing market for books published online. Businesses are creating e-books as a way to market their brand, and aspiring authors of fiction and nonfiction publish e-books as a way to reach more customers and grow their readership.

In 2019 alone, revenue generated from e-books topped $1.3 billion, and that number will rise to $1.6 billion by 2024, Statista reports.

15. Fitness tech

Technology has applications in nearly every industry — including the fitness industry. We’ve already seen new technologies like FitBit, Peloton and Strava change how people exercise, and more innovation is on the horizon. That’s the belief of Jared Weitz, founder of United Capital Source Inc.

"Fitness technology is an area of continued growth. Whether it is creating products like fitness trackers, wireless earbuds or smartwatches that have multiple functions, the market is constantly seeking new gear and technology,” Weitz says. “This niche is expanding from tangible fitness products to the apps and data that marry the physical and digital together. Combine a high-tech device with an app related to exercise or diet and you will be setting yourself up for success in 2020 and beyond.”

16. Online teaching

Do you know a foreign language? Can you build a treehouse? Do you cook really good soup? Then you can make money sharing your knowledge and expertise online. Thanks to services like Teachable and Udemy, teachers can now build their own online classes, sell them to students and teach the entire class online. If you’re a good teacher and know how to market your class, you can earn a livable wage by teaching your skills to others through the internet.

17. Mobile application development

Every business needs a website. And the way the market is trending, soon every business will also need their own mobile app. This presents an exciting opportunity for individuals skilled in app development. Successful companies like Braze and Leanplum have built their entire business around developing apps for others.

There is really an endless supply of app ideas. There were 194 billion app downloads in 2018 alone, and that number is only expected to climb. So strike while the iron is hot.

18. Search engine optimization consultant

Google is still an essential part of many business’s marketing strategies. They need to be able to appear as a top result in Google Search for keywords related to their business. That means they need someone who is skilled in search engine optimization, or SEO, to help them. Some businesses hire people to perform SEO in-house, but many organizations also work with freelancers or third-party agencies to implement an SEO strategy. If you can train yourself in SEO and keep up with its ever-changing trends, you can start a business providing SEO services to other organizations.

19. Social media consultant

If you’re not into SEO, but are good on social media, you can work with businesses to help them generate likes, shares, retweets, followers, comments, clicks and more as a social media marketer . In this role, you’ll consult with companies and help them manage their social profiles, spread content across the web and build their brand.

What’s more, the startup cost to be a social media marketer is minimal and can be done from your own home. Just be sure to buff up your social media skills and keep up with the latest trends and platforms.

20. Drone videography

If you own a drone and know how to use a camera, there’s a market for your services. Commercial and residential real estate agents are increasingly using aerial shots as a way to market their buildings and property. You can find real estate agents in your area using platforms like Zillow. Then reach out and offer up your services. Other industries, such as agriculture, events and more have uses for drones, as well.

21. Cybersecurity or IT consulting

Businesses today are increasingly threatened by cyberattacks, making the need for IT consultants greater than ever. As an IT consultant, you can help businesses evaluate their security systems, run tests and offer advice on how they can better protect themselves from cyberhackers.

More generally, an IT consultant can help businesses set up their computers and troubleshoot any general issues.

22. Venture capitalist

A vast majority of tech startups are backed by venture funding. If you have an interest in the tech space, but don’t have any technical knowledge yourself, you can try raising some money and becoming a venture capitalist or angel investor.

Similar to being an influencer, a venture capitalist isn’t something you can simply become overnight. That’s because being a venture capitalist requires allowing others to trust you with their money.

You need to start small and make some solid investments in order to make a name for yourself. Many independent investors join a VC fund for a while before striking off and starting their own fund.

23. Startup incubator

Another way to get involved in the tech world without having a lot of technical experience is to create your own startup incubator. The job of an incubator is to help startups plan and launch their business successfully. Services provided may include management training, office space and mentorship opportunities.

Of course, you’ll need some background in business to be able to successfully launch an incubator. The cost of creating your own incubator and attracting founders may also be difficult to muster. Many incubators start small and grow over time once they have successfully helped multiple startups enter the market.

24. Antivirus developer

An antivirus developer is a highly specific sort of tech business idea that pertains to the creation of antivirus software that can help businesses protect critical data. Antivirus software can be created using a variety of different programming languages. The overall goal of an antivirus is to detect and remove malware before it impacts a computer’s systems. Start networking with local businesses in your area to find out if there's a need for this service.

25. Domain name broker

Being a domain name broker is similar to being a stockbroker, except instead of stocks, you sell domain names. To get started you need a little capital to buy some domain names. You’ll then need to educate yourself so that you’ll be able to predict domain name requirements in the future.

So like most of the businesses on this list, it will take some work to get started. But everyone needs a domain name, so there will always be a market for this service.

LLC Formation

The bottom line

We hope our list has helped you figure out which tech business idea is the right fit for your skills and interests. Regardless of the route you choose to take, you’ll need to write a business plan, create a business entity and maybe take out a business loan to get your startup off the ground.

On a similar note...

NeoITO Blog

35 Best Profitable Tech Startup Ideas for Beginners [With Examples]

35+ actionable & promising startup ideas that you can try out right now at an affordable cost.

Ever had a headache to find a great idea for a tech startup?

You know the best way to start a tech business industry is to get an idea . But 2020 and 2021 weren’t that great for most businesses out there due to the pandemic situation.

However, any crisis can bring out the perfect business solution; all you need to have is the right idea to tune in to the situation. As an example, look at the sales businesses made by selling facial masks and sanitisers.

The post-Covid world will mainly depend on the power of the internet, and for the same reason, most businesses are rapidly moving online.

Over the past several months, you might have witnessed how the pandemic had forced many small and large scale businesses to move online. This massive online migration of small and large scale businesses unfolds new possibilities for tech startups to build unique models for these businesses .

So, why don’t we spend some time together researching some promising new tech startup ideas that could help you build your business empire!

What are the Best Tech Startup Ideas to Watch for in 2023?

One thing is for sure: the evolution of technology in recent years proves that unless businesses are adopting the latest available tech in the market, they will get eliminated from the game of business.

With a rising number of new tech or software startups growing and receiving funds for their unique business models, many new opportunities are arising for them amidst the Covid-19 at rampage.

Let’s get straight into the complete list of 21 promising tech startup ideas that have impacted 2021 and will have immense potential in 2022.

Here are the Most Profitable Tech Ideas for Startup:

1. artificial intelligence.

For the past decade, AI has been gaining a lot of attention, and there’s no doubt AI would evolve even further. In the future, most mainstream businesses will be equipped with AI, thus opening numerous tech startup opportunities.

Nowadays, AI can read for us, speak, write, hear, see, and analyse things in terms of videos and photographs. All of this is completely transforming organisations and helping them re-imagine and streamline their business processes. Read the advantages of AI in mobile app development .

For many industries, this Covid-19 pandemic was disastrous. But, it only accelerated the use of AI across the U.S economy. During this time, many companies started to create new services for remote workers and students. They build up online shopping, dining options, make customer call centres more efficient, and speed up development of essential drugs.

With the increased infection rates and bio lab cases due to the pandemic situation, AI plays a crucial role in maintaining the analysis of those overwhelming volumes of data.

Today, one out of 10 organisations uses more than 10 AI applications. It includes chatbox, security, fraud detector, and more. The increase in adoption of machine learning across industries has proved that how its algorithms and techniques are solving complex real-world problems efficiently.

AI.Reverie, Anodot, Dataiku, BigML, etc., are examples of leading AI startups shaping the AI industry.

The business you choose should resonate with your skill and market demand. Love to code? Then a build a software company. Check out some trending business ideas now .

So, from healthcare to IT services and cybersecurity, startups have a plethora of areas to be explored. And in 2022, the demand for them is only going to increase.

2. Telehealth and Virtual Medical Services

The one thing that changed a lot in the health industry during the past year is tech’s tremendous medical services involvement. For this case alone, many tech companies are streamlining their services for the healthcare industry.

Recent studies have shown that telecalling the patients could resolve about 80% of primary medical attention required. Furthermore, hospitals can improve their online healthcare system with the aid of virtual medical services.

These services open an abundance of tech startups opportunities to compete against more prominent players within the same industry. The demand for such services is increasing day by day as more and more startups discover its benefits like:

• It can help cut costs
• Shorten wait times
• Bring healthcare to people in rural areas
• Keep a close eye on newborns
• Help keep at-risk patients healthy by providing quick check-ins

It is not a pleasant way to wait in a doctor’s office and spend a long time. By having contact with other sick people, there’s a high chance that people might leave with diseases worse than what they came with. Telemedicine help avoids such risks, and that’s why it is booming now.

Read: Most Important Features Needed When Developing a Healthcare App

See how Telemedicine The Future Of Health Care.

3. Remote Working

As the Covid-19 pandemic has hit worldwide, “Work from Home” abbreviated as WFH, has gained popularity across the tech industry. But as months passed, we know how things escalated quickly.

Issues started arising as more and more companies began switching to a remote working model. Like it becomes more challenging to highlight professional achievements, the engagement between workers becomes much harder, etc. This problem gave rise to tech solutions like personal remote process automation.

Also Read: How to Work Effectively with Your Offshore Development Team: A Detailed Guide

4. EdTech Startup

The industry that gained the most attention during these uncertain times is the education industry. When students, teachers, and their families feel burned out from pandemic learning, companies that market online learning tools to schools were enjoying a coronavirus windfall. Investors are happy to invest high in EdTech startups.

According to CB Insights report , (a firm that tracks startups and venture capital), venture and equity financing for EdTech startups has more than doubled. This means it rises from $4.81 billion in 2019 to $12.58 billion worldwide last year.

With all those schools, institutions, and other academic centers taking their business entirely online, startups secure funds and grow even as Covid-19 continues.

Even in the post-pandemic world, many organisations have already taken initiatives in designing a suitable online curriculum.

The increasing demands for online coaching businesses are also showing how vast the opportunities for tech startups are within the EdTech industry.

Most startups depend on venture capitalists, angel investors, and microloans to raise funding. Want to explore other flexible funding options?

Read now: Different sources of funding for startups

Byju’s is an EdTech company from India, which spread its wings all over the world. See how much does it cost to create an eLearning app like Byju’s.

Also Read: All You Need to Know Before Developing a Winning E-learning App

5. Biotech Startup

Many biotech startups emerge every year alongside the rapid growth of technology. Such startups gain publicity and support from angel investors and governments because biotechs are essential to improving human life quality.

Many of these companies attract entrepreneurs, executives, and investors because the payoffs can be huge when breakthroughs are made. However, the challenges faced are not easy, either.

If lots of caution and innovative ideas proceed, you can have a massive opportunity as a tech startup to impress investors and receive multimillion-dollar investments and even attract the media and gain some fame.

See how young VC-backed founders share their stories on launching BioTech Startup.

6. Robotic Delivery

It is not a simple task for entrepreneurs to run robotics startups. Yet the number of robotics startups working on groundbreaking technologies are growing in numbers.

Robotics have been fast-growing for the past few years, but the current pandemic situation accelerated its growth even further, giving every startup a chance to up their game.

The astounding number of efficiencies that robotics perform in limiting human-to-human interaction has helped fight the virus. This adds a higher demand for robotics in upcoming years where autonomous robots are brought to most businesses’ front lines. Amazon is working towards perfecting their drone delivery system.

So, if you are thinking of a robotics startup, you should learn the do’s and don’ts on building it as it grows and matures.

7. eCommerce Startup

Are you thinking of starting an eCommerce business ?

As reported by Forbes , in the first quarter of 2021, the U.S. eCommerce sales grew by 39% year after year to $199 billion. This growth is only increasing, as global e-commerce sales are predicted to reach $4.2 trillion this year.

Developing a simple and easy website along with a mobile app is all you need to grow your eCommerce business. Talking about the eCommerce business, now is the best time to start one.

In almost every sector, the eCommerce industry is booming. From running a top-rated online fashion store to selling old pieces, it should all work.

The purchase behaviour of people has changed a lot ever since Covid-19 has hit the world. People enjoy the ease of online shopping as well as the websites providing deals and discounts.

They heavily rely on eCommerce to shop for everything from essential goods to holiday gifts. This is not just an eCommerce acceleration, but a massive shift in user behaviour which opens doors for startups in the eCommerce sector.

No matter if a thousand more tech startup founders emerge under the eCommerce sector, there are still plenty of opportunities arising each day. You have to find the right niche to start your business.

Alternatively, you can be the shovel seller rather than mining gold. This means you could start giving various services for those who are new to the eCommerce business.

Even with the restrictions of being a student, building your startup is feasible. The first and foremost thing to consider is to find a business idea and gather the intel required. Here is a an ultimate one-stop guide to launching your startup as a student.

Either way, there’s no better time for launching this business than today. Ali baba, Amazon are leading companies in the eCommerce sector. Take a look at the Complete, 10-Step Guide to starting a business .

8. Internet of Things

In this technology driven world, the internet connects everyone from every part of the world. Similar to that, the products and services can be connected to each other through mechanical devices embedded with sensory chips and software that helps in the exchange of data with other devices without human intervention.

This can be used to improve efficiency of devices and help you enable new services that promote safety and environmental benefits. Internet of Things (IOT) is the new future and companies are already incorporating it in their products.

The local camera and door lock systems use your mobile phones to communicate with the devices kept at your home and ensure better safety and avoid miscommunication.

9. Social Media Influencer

“use Signal, “the controversial tweet from Elon Musk that increased the number of users for Signal in a single day. This is an excellent example of how a person can influence a vast crowd with a simple tweet.

Suppose you are willing to work on your social media presence and give the netizens the information as a credible source. In that case, your followers will increase, giving you the power of opinion to many people. Marketing firms utilise this power to promote products or services among the public.

Since the opinion is coming from someone they trust, they will be influenced. There are a lot of social media influencers today, so to earn your mark, you would have to work hard, and your work should be trustworthy.

Read: 13 App Marketing Strategies That Startups Must Know

10. VR and Gaming Arcade

Virtual reality computing (VR) has a whole new set of opportunities for you to venture. With the introduction of the metaverse, the VR industry is getting ready to soar high.

What’s better than gaming? Living the game.

People want to experience the events of the game in real life, and VR makes it possible. The gaming industry is growing, with gamers going live on YouTube and making a decent income.

Many games are now designed for VR specifications like Batman: Arkham VR, suggesting the gaming industry’s shift to VR. Don’t be under the fact that VR can only be used for gaming; there are a lot of applications for this.

Social interaction through VR is possible nowadays. You can take a tour of properties on a real estate platform from your home without moving an inch. Attending social events has never been more accessible, and distance is never a problem.

In these pandemic times, VR can help with providing better quality schooling to students without actually going to school.

11. Cyber Security Services

Privacy is the utmost concern in these technology-driven times. With all our information available in digital form, there is a massive concern about our data falling into the hands of others who misuse them.

Scams, malware, ransomware, etc., are increasing day by day, calling for foolproof data security. A cyber security expert can rule out any chances of data breach. Cyber security market is expected to reach $352.25 billion by 2026 and this makes launching a cyber security startup a good idea. Take a look at this mobile security checklist to keep your application safe.

Pro tip: “You need high coding proficiency to excel here.”

12. Digital Marketing

To attract the new crowd, we go where they spend most of their time. It was in front of a television a few years back, and now it’s their phones. In this digital era, marketing has found new ways to attract potential customers.

If you are looking for a great tech startup idea, digital marketing is a great online business idea if you have the right creative team.

The introduction of Artificial Intelligence (AI) in the digital marketing world has improved the chances of getting personalised pitches to customers. Uber, Airbnb are all examples of companies that use AI to create marketing campaigns. AI also helped reduce work for people as they optimised the search results based on the need and capabilities of the customer.

Even with a massive opportunity for growth in the field, you have to be picky when hiring. Your team is what will determine the success of this promising idea. The creativity and innovative minds of the social media marketer are the critical catalysts for your growth in this industry.

13. Data Analysis Firm

The use of the internet has grown exponentially over the last few years. With the increased number of users, the data they upload and consume is humongous. A big data company analyses this data of the users for various purposes.

This data can be used to understand the marketing strategies to target the customers. Learn the likes and dislikes of the majority and devise a method for a specific set of potential customers.

Data analysis is required while doing software or app development to understand the customer. Social networking sites like Facebook use these data analytics to find people and suggest people you may know.

Machine learning software is optimised through data analysis. This improves the scope of robotics, automation, self-driving mechanisms, etc., where the machine learns to do its work through data analysis.

Pro tip: “Background in mathematics, economics, or finance is an added advantage.”

14. On-Demand Services

We all have demands; when we are hungry, we need food. While sitting on that comfy couch, we don’t want to get up and go out to get it. Like a gift from God, we have Uber food delivery at your doorstep. That is a prime example of on-demand services.

We can get products and services just by searching online in the comfort of our homes. There are a lot of services ranging from food delivery to cleaning to choose from. The quality of the service you provide will determine your position in the market.

This is a highly competitive industry as many companies have established their place in the market. If you can give the customers what they desire at a reasonable price, there is always a market open for you.

Also Read: A Step by Step Guide to Build an On-Demand Courier Delivery App

15. Fintech

Fintech or financial technology is aimed to remove the traditional financial services to an online service. PayPal is a fintech company that primarily deals with the transfer of funds. This is just the tip of the iceberg.

Fintech deals with digital lending credit, cryptocurrency transfers, trading, insurance, and so much more. Anything that deals with finances online is a part of Fintech. Digital wallets are now widely used and accepted. This eliminates the hassle of carrying money and keeping it safe and easy to give the exact change when needed.

The boom in the crypt world has increased the market for this service. As this deals with finances, you have to be careful with the security of the funds deposited by the people. Though it is a high-risk and expertise-required field, it has a future if you are up to the task.

Check out the 15 things you didn’t know about the Fintech Industry

16. Health and Renewable Energy

The Covid-19 pandemic has created a sense of health awareness all around the globe. More people are inclined towards choosing a healthier lifestyle. Many apps and software are developed to help them through this journey.

We have seen considerable developments in the field of health. Many companies have profited from this pandemic with the help of their impeccable products and services. For tech startup ideas, you can always create an app that focuses on health and exercise. There is also an opportunity of creating new innovative machines that can replace traditional tools to give a more accurate service.

In health, people are also now more than ever inclined to clean energy sources like solar and electricity. Carbon footprint reduction is also a significant prospect for many companies. This is an upcoming trend and has the scope of high scalability if you have the right business plan.

Tesla is now dominating the electric car market, look for a way to tap into those renewable resources, and you will have yourself a successful business idea .

17. Business Incubator

Incubators provide everything for a startup to thrive and grow – from workspace to funds. You can attract valuable talent if you have an ideal location to provide services for the new upcoming CEOs. You need to provide them with basic facilities like electricity, office space, internet connectivity, etc.

The main catch of this startup is that you wouldn’t need to start big. You can start small and grow along the way.

18. Travel and Tourism Agency

During this pandemic, tourism had a downfall, but it is bouncing back more vital than ever, and you can get a piece of this action. Many people are coming forward with the urge to travel to new places but lack a clear idea of planning the trip with minimal expenditure.

With you providing them the perfect itinerary to travel, many will come for your services, and if you give them the whole package deal of accommodation and travel routes, you will have a decent startup in your hands.

Not only the travel enthusiasts but you could also attract business travel clients.

American Express Global Business Travel is one such example.

19. Custom Drone Building

Drones are now used widely for surveillance, and now it has evolved into a sport of drone racing with colossal prize money up for grabs.

Professional drone racing requires custom-made drones, and you could start small with the expertise and scale it to good heights.

20. Freelance Work

Do you have exceptional skills sought by many?

If yes, then freelancing is the best way to sell your skills. Many companies require professionals to do work at a fast pace and with quality. With your skills, you can grab opportunities like those to create a way income for yourself without the pressure of a 9 to 5 job.

You can do your work in your own time and present them for an agreed remuneration. Many are registered on sites like Upwork , Fiverr, etc., where freelance work is available. The growth in social media has also contributed to the development of freelance workers.

21. 3D printing

The 3D printing industry is an underrated startup idea. From building houses to organs for transplantation, 3D printing is slowly introduced into many sectors and is growing day by day. The expenses of printing items have come down, and this is an excellent time to tap this emerging industry.

You have to keep in mind that even if you have a 3D printer, it will not be enough. You need to get expert knowledge before starting, and you have to do a bit of advertising to attract possible customers.

Bonus Infographic – Tech Business Ideas

22. Data Mining

The world is moving towards a data-driven economy. To make decisions on all spheres, a company needs information, and they depend on data to function smoothly.

Data mining is the process of finding patterns, correlations etc., from a vast set of data to predict outcomes. It is used to understand customer mentality, task allocation, risk reduction and many other factors that help run a business. As far as a tech startup idea is concerned data mining can be a promising field with the right resources.

23. SEO Agency

With most of the customer base turning to online methods, new companies are also trying to establish and reinforce online presence. Your company details need to show up at the top of the search engine to make that a reality. SEO specialists will help you achieve this.

SEO specialists help businesses optimise their online presence by making their online content more search-friendly. Content optimisation is just the tip of the iceberg; SEO specialists handle link building, analytics tracking and many more processes to help improve the page ranking of your website, all the while consistently seeking the best SEO software for agencies to ensure a seamless optimization experience.

24. Web Designing Service

A business that wishes to create an impact on its customers needs a website that is unique and creative. If you have skills in designing and coding, web designing will prove to be fruitful for you.

An average customer constantly searches online as the first research mode before buying a product or service. If a company has a website with all the details in a professional fashion, it will help to increase the credibility of the company and acquire a reasonable conversion rate.

So the demand for a great web designing company is always present in the market.

25. Software Development Service

Software requirements for each company are different. They need solutions for the particular problem they are facing at the moment. Software is required in different sections for the company like user interface, backend architecture, and so much more. Though it is an aged field, the growth rate in the industry is still strong.

If you are a skilled software developer, you can freelance your work or start a software development company. Starting your own business to create programs for the client specifications can be a highly profitable domain.

26. Mobile Application Development

Mobile applications are a great tech startup idea in this era tech-driven era. There are thousands of apps in app stores. Developing your own apps or apps for clients is a great way to start a profitable business.

With a development team with specific skill sets, you can develop mobile apps using different technologies across platforms like Android, Apple etc.

27. Cloud-Based Services

The new data-centric world is flooding online platforms with customers’ data. Companies need to be careful with the data they collect, and businesses need a safe backup system to gather and store data.

This is where a cloud-based service comes into play. If you can offer cloud technology to businesses and charge them based on the space they use this is a tech startup idea that can help you raise a profitable business. Companies are constantly on the lookout for cloud services, and with the proper software management, you can step in to help them.

28. Social Media Consultancy

Social media is a powerful tool to communicate to a wide audience. Many businesses need experts to manage it for them. Managing an active social media presence can help a business grow rapidly. If you know how to wield that social media sword properly, this is the right business for you.

Social media consultancy is not limited to businesses, many celebrities need to have an active social media presence. Even politicians require good social media experts to reach the people positively and not let them say things that will get them banned on Twitter.

29. UX Service

User Experience services or UX services are mainly involved in creating a stable interaction between the service user and products. This is an essential part of an online platform. The features you offer through UX services will help businesses increase their conversion rate.

If you have the knowledge and creativity in creating UX services, this field of business will help you on your road to success.

Learn more: Top 9 Mobile Usability Issues and Solutions to Fix Them

30. Live Chat Service

Live chat services are now popular among businesses. Customers require answers to their queries in real-time, and if you can manage to create a team that can deliver this service with quality, there is always a market present for you.

Customer engagement is an integral part of every business as it will help clear all the doubts of customers and get them to make a purchase.

Also Read: How to Manage Your Tech Startup as a Non-tech Person

31. Chatbot Creator

Chatbots are necessary for a business to filter queries that need human assistance. Creating chatbots for companies is an excellent business to start now as more and more businesses have online customers, and they need chatbots to handle that volume. With a chatbot, customer queries can be answered quickly and efficiently.

32. Web Analytics Service

Website analytics help businesses perform better. The customer journey through a website is a goldmine of data for a company. They can analyse their problems and improve their functionality to improve customer experience. Ab web analytics service can tell businesses how they can turn cluttered customer data into growth opportunities.

33. Crypto Mining

Cryptocurrency has become a household term nowadays, and there are miners everywhere. With the boom of bitcoin, more and more cryptocurrencies have taken the main stage like Cardano, Etherium etc., with the right analytical knowledge setting up mines is a profitable venture.

Crypto mining takes up a lot of energy, especially bitcoin mining, so a sizeable initial capital might be spent to create the farms required for the mining process. If you have the resources at your disposal and a keen eye for the crypto market, you can mine a fortune.

Non-fungible tokens are cryptographic assets in the blockchain with unique identification codes. NFTs are profitable investments you can make; they are like unique pictures like the Mona Lisa, which you will have sole possession of.

Before you head into the NFT market, be sure to be well versed with the NFT market and its statistics before proceeding. Even though NFTs are rewarding, they are subjected to different market fluctuations. You can either build NFTs or invest in them based on your skillset and resources.

35. Meta Real Estate

With the introduction of the metaverse, new windows of opportunities are opening before us. Owning prime real estate properties and managing real estate in the metaverse is becoming a new normal. With proper research , you can create a profitable business out of it. Properties worth millions of dollars have been sold, and if you become a meta expert, you can get a piece of that action too.

There’s no doubt a successful business does give you financial freedom. With the above list, I have presented you with some of the best tech startup ideas to build your business in 2022.

However, you need to know that everyone does have some ideas. Even though ideas are great, it alone could never build a successful startup.

Your priority is to determine whether the idea you have within you is a scalable one . If so, you need to hire the right app developers to successfully develop your product. Always remember, it’s not an easy task to run a tech startup company, so don’t refrain from asking for help. Having a tech partner like NeoITO can guide you in this journey.

We helped many startups build their businesses from scratch and guide them by giving free startup product development consultations. Most importantly, we helped them achieve financial freedom by developing their idea into a business model.

Now you have some amazing and promising tech startup ideas. Want to learn more about if you’re really ready to convert your ideas into a business? Then check out our expert take on great signs you’re ready to start your own business which will help you take the next big step!

PREVIOUS BLOG:

Top 15 profitable software startup ideas for emerging entrepreneurs, 17 pro tips to pitch your tech startup ideas effectively.

Abdu Rahman is a marketing professional with over 5 years of experience. He currently heads the team at NeoITO, specializing in SaaS startups and optimization. He is known for his strategic thinking, data-driven campaigns, and experience in B2B and B2C markets. Abdu is passionate about staying updated with the latest marketing trends and experimenting with new technologies.

We are NeoITO A team of engineers, product managers & strategists helping you build enterprise-grade products and scale your business 2x faster.

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More From Forbes

How startups build an effective marketing strategy from day one.

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Mario Peshev is the CEO of DevriX and Growth Shuttle, an angel investor, and a business advisor with 10,000+ hours of consulting.

The past three years have been a boon for new businesses . In total, more than 16 million new business applications were filed, with 440,000 entrepreneurs completing applications every month.

This is great news for the economy broadly since, as President Joe Biden said in a statement , “Every time someone starts a new small business, it’s an act of hope and confidence in our economy.”

It may be an act of hope, but it’s also an enormous risk for the entrepreneurs.

The failure rate for new companies is high enough to convince aspiring entrepreneurs to reconsider their options. According to the Bureau of Labor Statistics , 20% of small businesses fail in their first year, half within five years and only 30% survive a decade.

Startups close for many reasons; however, they fundamentally fail for the same reason: not enough people spent enough money on their products and services to make them economically viable and sustainable.

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In other words, they failed because their marketing strategy failed. They didn’t reach the right people with the right message at the right time to convert leads into customers and customers into repeat buyers.

For startups with limited resources, untested potential and intense competition, the right marketing strategy can differentiate between a growing brand and a faltering business.

Here are three steps to establishing a marketing strategy to propel long-term startup success.

1. Create a marketing funnel.

Most people don’t become customers the first time they visit your website, stop by your store or hear about your brand. They require multiple interactions and touchpoints to build trust and understand the value of the product or service offering.

Rather than waiting for people to decide on their own, a marketing funnel guides them through the buying journey, addressing their needs at each stage.

At the top of the funnel, leverage website visitors or traffic from Google, Facebook, X, LinkedIn and email to provide valuable content like whitepapers, ebooks or checklists in exchange for visitors' contact information.

In the middle of the funnel, help visitors understand why they should choose your product or service. This might include providing case studies, testimonials, webinars, live demos or free trials.

Finally, at the bottom of the funnel, take a direct approach aimed at qualified leads by offering free consultations, assessments, special discounts, promotions or live demonstrations.

Notably, a marketing funnel requires more than a slick storefront or website and compelling copy. It demands a deep understanding of customer needs and pain points so brands can craft content that addresses these concerns and guides them toward making a purchase.

2. Develop data-driven marketing collateral.

Today’s customers expect tailored and personalized interactions wherever they go.

According to research by McKinsey & Company , 71% of consumers expect companies to deliver personalized interactions, and 76% are frustrated when brands don’t deliver.

To achieve this, McKinsey & Company explains, “invest in customer data and analytics foundations.” This information allows marketers to more precisely understand customer pain points and how these problems evolve over time.

At the same time, consider conducting market research to understand industry trends, competitor activities and customer preferences.

Of course, converting customer data into compelling marketing collateral is easier said than done. Instead, many organizations are drowning in customer data. As a recent Harvard Business Review analysis notes, "Many senior managers find themselves wondering: If data is such a game changer, why is it so hard to extract any value from it?"

Marketers can address this challenge by using robust data infrastructure and advanced analytics to personalize content based on customer needs, enabling agile marketing that continually refines strategies for effective engagement and conversion.

3. Assign KPIs and measure success.

To know if your marketing campaign is successful, you have to know what success looks like. You have to define success. That’s what key performance indicators (KPIs) achieve.

This definition necessarily looks different for every brand, but it’s impossible for a startup to market effectively if it doesn’t determine its success metrics, measure its progress and adapt its tactics and strategies accordingly.

The Content Marketing Institute identifies three components for optimizing marketing performance: deciding what to track, measuring data and converting information into actionable insights.

For startups, marketing KPIs might include:

• Engagement Rate: Tracks how actively your audience interacts with your content.

• Conversion Rate: Measures the percentage of visitors who complete a desired action.

• Customer Acquisition Cost: Calculates the total cost of acquiring a new customer.

In addition to quantitative data, capture and integrate qualitative insights from direct feedback from relevant stakeholders.

Marketing matters more than ever.

Successful companies are built by incredible people and compelling products and services that find an audience and generate sales. They are promulgated and expanded by effective marketing strategies that attract attention, generate leads and expand brand resonance.

Creating a comprehensive marketing funnel, developing data-driven marketing collateral and assigning clear KPIs to measure success is a great place to start.

Meanwhile, don’t allow your marketing strategy to stay stagnant. Use these steps as a starting point for creating an adaptive marketing strategy that grows and scales alongside your business. In this way, marketing and startup success go hand-in-hand, propelling innovation, growth and lasting market impact.

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'Painful' wake-up call: What's next for CrowdStrike, Microsoft after update causes outage?

It all started with a software update .

Microsoft’s “blue screen of death” upended government services and businesses across the country Friday, disrupting emergency call centers , banks, airlines and hospitals. 

While Microsoft said a faulty software update from U.S. cybersecurity firm CrowdStrike was responsible for the major IT outage, the incident brought attention to just how big of a market share both companies have in their respective sectors.

“When we use all the same vendors, then these sorts of things can become more pronounced when they do happen,” said Dominic Sellitto , clinical assistant professor of management science and systems at the University at Buffalo School of Management in New York.

Why did the CrowdStrike outage happen?

A statement from CrowdStrike said the outage was caused by a defect in a content update to its “Falcon" cybersecurity defense software for Windows hosts. 

Computers with Mac and Linux operating systems were not impacted, and CrowdStrike said the incident was not caused by a cyberattack.   

There's always the potential for bugs or errors when new software is launched, but most times they’re small enough the end user is generally unaware, according to Tim Ehrenkaufer, assistant professor of aeronautical science at Embry-Riddle Aeronautical University in Florida.

The nation was certainly aware Friday – the glitch disrupted everything from 911 call centers to the Starbucks mobile app. 

"As companies all over the world and governments and agencies and entities are reliant on single technology platforms, it does mean that these types of events are more and more and more painful," Sellitto of the University at Buffalo said.

CrowdStrike, Microsoft market share

CrowdStrike is advertised as being used by more than half of Fortune 500 companies. 

Meanwhile, Microsoft’s Windows is one of the most popular operating systems in the world, and the company provides an estimated 85% of the productivity software used by the federal government, according to statements from Rep. Bennie Thompson, D-Miss., during last month’s House Committee on Homeland Security. 

“The issue we're dealing with is that the world is complex and interdependent, and the fact is that the technology that we use is global,” said Scott White , an associate professor and director of the cybersecurity program and cyber academy at George Washington University in Washington, D.C. "We've become dependent on organizations like (Microsoft)."

CrowdStrike outage: Global tech outage hits airlines, banks, health care and public transit

Does Congress need to step in?

Within hours of the outage, some lawmakers and cybersecurity experts discussed whether Congress – or the Biden administration and the Department of Homeland Security – need to add more regulatory guardrails to make sure an outage of this magnitude doesn’t happen again.

Paul Rosenzweig, a former DHS deputy assistant secretary for policy, said the best response to Friday’s outage would be to require companies and governments to have redundant systems so they have a backup when their systems go down.

Asking companies to do that on their own would be prohibitively costly, Rosenzweig said, and few would do it. But it would be hard for Congress or the Biden administration to require them to without doing the same within the government, which would be time-consuming and astronomically expensive.

“It’s an interesting question,” said Rosenzweig, founder of Red Branch Consulting PLLC, a homeland security and cybersecurity consulting company. “The government can't mandate people diversifying if it won't do it itself ‒ and it's the biggest, if not certainly one of the biggest (Microsoft) clients."

But Rosenzweig also warned that Friday’s outage is likely to happen again, and possibly with more serious repercussions , so governments and the private sector need to be ready.

“They have to spend extra money” to build in better protection including backups, he said. “If companies aren't going to do that, this will happen again, either by accident like this time or by malicious action.”

Other cybersecurity experts believe the system works as it is, and that CrowdStrike bears full responsibility for the outage in ways that wouldn’t be helped by additional government intervention.

“This incident appears to be a severe failure of quality control, not a malicious act,” cybersecurity strategist and former FBI counterintelligence official Eric O’Neill said of Friday’s paralysis. “While there will be damages assessed, regulation is unnecessary; the market will drive customers to other vendors or reassure them about CrowdStrike.”

O’Neill did say, however, better regulation of cybersecurity investment and best practices is critical because the U.S. government “has reacted poorly in this crucial arena of critical infrastructure.”

“If the U.S. government needs to bail out CrowdStrike, which I believe is too big to fail, then taxpayers will bear the burden,” O’Neill said.

‘Critical infrastructure and international partners’

In recent years, DHS and its Cybersecurity and Infrastructure Security Agency have worked to build out a network of public and private sector partnerships to help it respond to such global incidents, in the belief that the government cannot do it alone.

Educating the private sector and cybersecurity firms on what to do – and not to do – is a critical component of that, whether the problem is a cyberattack or a faulty cybersecurity update, CISA Director Jen Easterly told USA TODAY in a 2022 interview.

To that end, CISA on Friday said it was “aware of the widespread outage affecting Microsoft Windows hosts due to an issue with a recent CrowdStrike update and is working closely with CrowdStrike and federal, state, local, tribal and territorial partners, as well as critical infrastructure and international partners to assess impacts and support remediation efforts.”

CISA also warned its network of public and private partners it observed hackers and other “threat actors taking advantage of this incident for phishing and other malicious activity.”

Where do companies go from here?

CrowdStrike and Microsoft business clients may consider alternate vendors after the global outage, but that's no solution to the crux of the issue, said Javad Abed, an expert in cybersecurity and data vulnerability and assistant professor at the Carey Business School at Johns Hopkins University in Baltimore.

"The CrowdStrike incident is a stark reminder that relying on a single cybersecurity tool, regardless of a vendor's reputation, creates a dangerous single point of failure," Abed said. "And implementing multiple layers with multiple vendors is crucial for business continuity and protecting critical operations."

This sort of outage can happen to any vendor or company, Abed said, but it is largely preventable, and one of the fundamental principles of cybersecurity is redundancy.

Having redundancies in the infrastructure may be costly in the beginning, but would be an investment in maintaining the trust between the businesses and their customers, Abed said. Companies should also rethink their testing and how they release updates, he says.

It's a wake-up call for cybersecurity companies to revise their procedures, Abed said.

• Best overall
• Best for beginners
• Best for retirement savings
• Best for experienced investors
• Best for active investors
• Best for mobile
• Best for kids and teens
• Why You Should Trust Us

Best Brokerage Accounts 2024: A Guide for Investors

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

A brokerage account is like a checking account for your investments. The difference, however, is that brokerage accounts act as a safe place to hold investable assets like stocks, bonds, ETFs, mutual funds, and crypto. 

Best Online Brokerages

• Charles Schwab: Best online brokerage overall
• SoFi Invest: Best for beginners
• Fidelity: Best online brokerage for retirement savings
• TD Ameritrade: Best online brokerage for experienced investors
• Interactive Brokers: Best for active investors
• Public: Best online brokerage for mobile
• Stockpile: Best online brokerage for kids and teens

Compare Top Online Brokerage Reviews 2024

The best brokerage company for you depends on the kinds of assets you're looking for, your investment style, and how much you're willing to pay for top-notch trading tools like auto rebalancing, market trades, and real-time market data. 

Here are the best online brokerages as picked by Business Insider's editors in 2024. 

Charles Schwab

Open and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500

$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)

0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums; commission-free trading on stocks, ETFs, and options
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Automated and advisor-managed accounts available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Multiple trading platforms; stock screeners and other trading tools
• con icon Two crossed lines that form an 'X'. $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
• con icon Two crossed lines that form an 'X'. Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums

Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.

• App store rating: 4.8 iOS/3.8 Android
• Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
• Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.

Schwab is a major discount broker and one of the largest investment management firms in the United States. Charles Schwab is one of the best brokers for trading commodity futures , offering a range of brokerage accounts and products that meet the needs of virtually any investor.

Hands-on investors are best served by the basic Schwab self-directed brokerage account, which gives you access to various investment choices. If you want more help, you can sign up for managed Schwab Intelligent Portfolios, one of the best robo-advisors . This account also doesn't charge any fees.

What to look out for:  There are also high phone and broker-assisted trade costs. 

Charles Schwab review

SoFi Invest

Get up to $1,000 in stock when you fund a new account.

$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading

0% for active trading and automated investing

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimum
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account or trading fees, and low fees to own funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to Certified Financial Planners at no additional charge
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. IPOs available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. SoFi 1% IRA match
• con icon Two crossed lines that form an 'X'. No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
• con icon Two crossed lines that form an 'X'. No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
• con icon Two crossed lines that form an 'X'. Currently only available to US residents

SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.

• Promotion: Get up to $1,000 in stock when you fund a new account.
• Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.

SoFi is an online brokerage featured in our guides for the best investment apps.  It charges almost no fees for its investment accounts, which include self-directed investing and automated investing (managed portfolios) with no recurring fees and a very low $1 minimum to get started.

SoFi 's self-directed "Active Investing" account has no fees for trading stocks and ETFs . You can buy fractional shares of stocks, which SoFi calls "Stock Bits." SoFi also has a few of its exchange-traded funds that could be a fit for your portfolio. Plus, it now offers options for trading and IPOs.

What to look out for: SoFi has a limited selection of research and tools

SoFi Invest review

Fidelity Investments offers a wide range of investing products, including fractional shares.

$0 ($25,000 Fidelity Personalized Planning & Advice)

0% ($0 or 0.35% for robo-advisor)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimum or account fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No commissions for stock, ETF, and options trades; fractional shares available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-transaction-fee mutual funds and fee-free mutual funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several research tools and trading platforms available
• con icon Two crossed lines that form an 'X'. Fidelity Go accounts cost more for investors with higher account balances
• con icon Two crossed lines that form an 'X'. Representative-assisted trades are slightly more expensive than other brokerages

Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.

• Promotion: None at this time
• App store rating: 4.8 iOS/4.4 Android
• Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
• Consider it if: You're focused on long-term investing and retirement.

Fidelity offers multiple account types, a long list of available investments, and competitive pricing with industry leaders for low-cost investments. It offers zero-expense ratio Fidelity Flex mutual funds and uses them for its robo-advisors, Fidelity Go. Fidelity Go now has unlimited one-on-one coaching calls for account balances of $25,000 or more. 

The online stock trading app Fidelity has no minimum balances or recurring fees. It offers commission-free stock and ETF trades with fractional shares available. You can invest in stocks, ETFs, options, mutual funds, bonds, CDs, and precious metals. Fidelity offers international investing in foreign markets and foreign currency exchange between various different currencies.

Fidelity can be a great choice for most investment needs, but it's especially strong for investors with a long-term retirement focus. The combination of low fees and a focus on helping investors reach a successful retirement helped make it the top choice for retirement brokerage accounts.

What to look out for: Fidelity gives you a lot for free, but mutual funds outside of the no-fee list cost up to $49.95 each, not including added fees for phone or broker-assisted trades. In addition, Fidelity charges higher margin rates than many competitors.

Fidelity review

TD Ameritrade

TD Ameritrade offers a large range of investment options, including stocks, bonds, ETFs, mutual funds, futures, bitcoin futures, and more.

$0 ($5,000 or $25,000 for managed accounts through Schwab)

0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free commissions on stock, ETF, and option trades
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum requirement to get started with brokerage account
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Large investment selection
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Research and educational resources available
• con icon Two crossed lines that form an 'X'. No fractional shares
• con icon Two crossed lines that form an 'X'. Robo-advice and managed portfolios are more expensive
• con icon Two crossed lines that form an 'X'. No cryptocurrencies

TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.

• Promotion: None at this time.
• App store rating: 4.5 iOS/3.6 Android
• Consider it if: You want multiple apps for different trading experiences and goals

TD Ameritrade is a discount brokerage that's great for both new and expert investors. Beginners will enjoy the simple online platform at TD Ameritrade's website. Experienced investors will want to take advantage of the advanced trading platform, called thinkorswim, and other expert resources TD Ameritrade makes available.

Like other large commission-free brokers, TD Ameritrade gives you access to almost any brokerage account you could want. It offers a list of tradeable assets bigger than most peers, another draw for experienced investors.

TD Ameritrade's thinkorswim provides a professional-style trading platform with advanced charting and order types. An embedded CNBC TV widget is a nice perk that keeps your trading strategy in sync with the markets. It's nearly Wall Street quality and comes included with TD Ameritrade accounts.

What to look out for: Charles Schwab acquired the company in 2020. TD Ameritrade has said on its website that it will continue to conduct business as usual while combining many components with Schwab. 

TD Ameritrade review

Interactive Brokers

Interactive Brokers provides trading access to more than 150 markets in 200 countries/territories around the world, allowing you to invest in stocks, options, mutual funds, ETFs, cryptocurrencies, futures, bonds, fractional shares, and more.

$0 ($100 Interactive Advisors automated accounts)

$0 for IBKR Lite; $0 IBKR Pro (per-share commissions apply)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low commissions and fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. International trading opportunities
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive trading platforms and tools
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several account types available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-transaction-fee mutual funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cryptocurrency investing available for bitcoin, bitcoin cash, ethereum, and litecoin
• con icon Two crossed lines that form an 'X'. Less active traders pay more for IBKR Pro
• con icon Two crossed lines that form an 'X'. Website can be tricky to navigate

Interactive Brokers is one of the best online brokerages for advanced, active investors who trade securities frequently and value access to market analysis and trading platforms.

Interactive Brokers is a top investment platform for all kinds of investors. Trade at higher volumes and get access to tools optimized for your investing needs. Typical investors may not care about the difference of a few seconds when entering and executing a trade. Very active traders, however, care about milliseconds.

Interactive Brokers has multiple pricing options depending on your level of trading activity and your personal trading needs. The basic account, IBKR Lite, gives you commission-free stock, ETF trades, and competitive fees for most other trades. 

IBKR Pro accounts use tiered or fixed pricing models. This means you won't get completely commission-free trades as you do with IBKR Lite. Pro accounts have additional access to market data. They also get access to the IBKR Web Trader platform and IBKR APIs for automated trading. Algorithmic trading, also known as algos, is included with Pro accounts.

What to look out for: Not all accounts and trades are free. Choose the right account level for your investment goals and experience. 

Interactive Brokers review

Public offers a $0 minimum requirement and allows you to filter its investment selection to see the securities that best align with your preferences

0% stocks and ETFs; Crypto: 1% or 2% markup; Alternative assets: 2.5% per transaction; Public Premium: $10/month

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums and commission-free trading on stocks and ETFs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cryptocurrency trading available for over 20 coins and tokens; alternative assets available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers fractional share investing for as little as $1; Premium plan includes advanced market data and insights
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several community features that allow you to share insights and receive insights from other users; educational resources like live audio events also available
• con icon Two crossed lines that form an 'X'. No mutual funds
• con icon Two crossed lines that form an 'X'. Not the best platform for day traders; it doesn't allow day trading of stocks

Public is best for active traders who want to invest in stocks, ETFs, and cryptocurrencies while utilizing the expertise and insights of other Public.com members.

• App store rating: 4.7 iOS/4.3 Android
• Consider it if: You value portfolio diversification and want a social component to your investing experience.

Public is an investment app that uses a mobile-first experience. The result is a mobile investment experience that's somewhat unique but still easy to navigate for both beginner and experienced investors. You can now earn a $0.18 rebate per traded options contract with no commission fees.

As the name suggests, trades at Public allow you to connect with other investors on the platform. You can follow others and chat about investment ideas. You can even join a group chat for live interaction with other investors. In some ways, it's like a built-in social network for investors.

Another useful feature for newer investors is the ability to view various themes. These group stocks by industry or other major categories to help you zero in on companies that make sense for your investment strategy. Public uses a commission-free pricing model so most users won't pay any fees when they trade.

What to look out for: Public doesn't offer a robo-advisor for hands-off automated trades. It's account selection is also limited as you can't invest in retirement, education, or custodial accounts with Public. 

Public review

Stockpile offers brokerage and custodial accounts with no recurring fees, no minimums, and no gift card fees.

$4.95 monthly subscription fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums and no gift card/funding fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 1,000+ stocks and ETFs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Can fund account with bank transfer or stock gift cards
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Fractional shares available
• con icon Two crossed lines that form an 'X'. Investment selection limited to stocks, ETFs, and crypto

Stockpile is a newer and smaller brokerage than some others on this list, but it's perfect for kids

• Consider it if: You want to invest with kids or teens

Stockpile is a top investment platform for kids to learn how to save and invest toward their future. Stockpile offers brokerage and custodial accounts with no recurring fees, minimums, or gift card fees. Invest in fractional shares for $1 and even trade popular cryptocurrencies. The online brokers have a $4.95 monthly subscription fee. 

Other investable securities include over 4000 stocks and ETFs in five different kid account options and one adult account. Cryptocurrencies are also available. Parents and kids will enjoy the built-in education resources, such as the "mini-lessons," which teach stock market basics that prepare anyone for a more successful future in the stock market.

Stockpile is great for kids and teens for a few reasons. The simple and easy-to-navigate platform shows kids the logos and companies they are familiar with in their investment portfolios . You can fund the account through a bank account or with stock gift cards. 

What to look out for: Other types of investments (such as mutual funds) are not supported.

Best Online Brokerage FAQs

Charles Schwab was our top pick for the best online trading platform that offers a range of brokerage account options, investments, and features that meet the needs of virtually any investor. It's a low-cost online trading site offering commission-free trades on assets like stocks and ETFs. 

Brokerage accounts are a type of account used for investments. With a brokerage account open and funded, you can buy and sell stocks, bonds, funds, and other investments.

In most cases, modern brokerage accounts are free to open and keep. There should be no recurring fees or minimum charges if you're looking for the best online brokerage account for most investors. There should also be few or no commissions for stock, ETF, and options trades. Some fees for phone or broker-assisted trades are common, as are commissions for some mutual funds and other investments.

Before opening an account, investors will request to see your personal information to comply with current laws and regulations. You'll need information such as your name, address, telephone number, Social Security number, annual income, and more. 

Many online brokers provide paper trading as a way to minimize risk. With a paper trading account, you can practice buying and selling investment assets before applying your strategy to your live account.  Beginners can benefit from paper accounts since these accounts are usually free and have no risk.

Introduction to Brokerage Accounts

Types of brokerage accounts.

Online brokerage accounts are licensed firms in which a broker is responsible for executing a client's orders. Types of brokerage accounts include: 

• Self-directed brokerage accounts (individual and joint)
• Robo-advisors (aka automated accounts)
• Retirement savings accounts
• Education savings plans (like the best 529 plans )
• Custodial accounts (UGMA/UTMA)
• Cryptocurrency trading accounts
• Health Savings Accounts (HSA)

How to Open a Brokerage Account

Online brokerage accounts are taxable investment accounts similar to a bank account but for your investable assets. Rather than stepping into a brick-and-mortar building to open a brokerage account and start trading, you can open an online brokerage account to access the market from your phone or computer easily. 

Here's you're opening a brokerage account checklist:

• Evaluate your risk tolerance, financial goals, and time horizon
• Explore different investment options in brokerage accounts to find the right one for you
• Compare fees, minimums, and investment features
• Determine what you need to open an account with that brokerage
• Gather the appropriate information and funds (if applicable) and start investing 

Some brokerages require a minimum deposit to open an account. Depending on the brokerage and the type of account, this minimum can range from $0 to $10,000 or more. Make sure you're comparing fees in top brokerage accounts as well. 

Security and insurance of brokerage accounts should also be considered before opening an account. Most platforms offer substantial coverage and security measures, but you'll want to check for any recent scandals or lawsuits in which the platform may be involved. 

You may also need to provide personal information like your name, age, address, social security number, and banking information.

Choosing the Right Brokerage

The best online brokerages offer portfolio diversification, great customer support, low fees, and account flexibility. Here's how to choose the right online brokerage based on your risk tolerance, goals, and time horizon. 

Everyone's investment goals and preferences are unique, and not all brokerage accounts are a perfect fit. To choose the best online brokerage, start by looking at your investment style and what you want from a brokerage. Whether that's cutting-edge active trading tools or a long list of no-transaction-fee mutual funds, there's a good online brokerage for everyone.

For most investors, a long-term, passive investment strategy is ideal. Many experts suggest building a diverse portfolio of low-cost index funds over picking individual stocks and riskier active trading tools.

Newer investors may be overwhelmed by advanced trading strategies and market charting features. The best online brokerages for beginners have strong customer support, easy trading tools, educational resources, staking rewards, and low fees and minimums. 

Once you understand what you need, consider costs, platforms, investment account types, and available investments to decide what's best for you.

Criteria for Evaluating Brokerage Accounts

In evaluating the best online brokerage accounts available today, we rate investing products on various criteria. The most important factors for Personal Finance Insider rates and reviews products are pricing, account types, investment availability, platforms, and overall customer experience. Investing platforms are given a rating between 0 and 5.

Most brokerage accounts on this list have no minimum balance or recurring monthly fees. After a major shift in pricing in 2019, most brokerage firms on this list also offer commission-free trades for stocks and ETFs. They also removed base fees for options trades but charged per-contract fees in most cases.

Top brokerage firms offer different platforms for different investment needs. Some are best for beginners, and others are ideal for more advanced investors. Platforms were evaluated with a focus on how they serve in each category.

Why You Should Trust Us: Our Expert Panel For The Best Online Brokerage

We consulted financial advisors, investing experts, and our own wealth-building reporter to inform our choices for the best online brokerages. 

We interviewed the following investing experts to see what they had to say about online brokerages:

• Brian Fry, CFP, founder at Safe Landing Financial
• Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
• Kaysian Gordon, MBA, CFP, CDFA, CPA, wealth manager at Clarus Group

What are the advantages or disadvantages of opening a brokerage account?

Brian Fry, CFP:

A taxable brokerage account offers the flexibility to have funds available when needed and without a tax penalty. They offer transparency and freedom when considering costs and investment options.

Other account types may add more value and/or tax-efficiency depending on a household's financial situation. For example, if qualified, HSAs provide tax deductions, tax-free growth, and tax-free distributions if used for qualified medical expenses; retirement accounts may provide tax deductions, tax-deferred or tax-free investment growth, and potentially tax-free distributions.

Education accounts may provide tax deductions and/or tax-free distributions if used for qualified educational expenses.

Charlotte Geletka, CFP, CRPC:

The advantages include access to stock exchanges to buy almost endless options of investments. This is where you can purchase stocks, bonds, ETFs, mutual funds, options, and almost the entire inventory of the open markets.

The multitude of options can also be a disadvantage. Most retirement plans offer a curated list of choices that have been well-vetted by consultants and investment experts. When you go into a brokerage account, it is daunting to know where to start. The recent rise of social media blogs surrounding investing may increase interest, but be cautious about investing, as any investment comes with risk.

Kaysian Gordon, MBA, CFP, CDFA, CPA:

The advantage of opening a brokerage account is — if you're interested in investing in stocks or bonds, mutual funds, or ETFs, as example, a brokerage is a great way to do it. 

Savings accounts or checking accounts just do not have those features. So the disadvantage is [that] you have to be aware of what you're looking for. Lots of different brokerage accounts will provide you with different things, so it's a matter of specifically what it is that's important to you.

Who should consider opening a brokerage account? 

A taxable brokerage account can be a good fit for anyone and everyone. Before saving in a taxable brokerage account, it's important to consider where saving adds the most value to your unique financial situation. Make sure to have an adequate emergency fund.  

Charlotte Geletka:

Once you have set up an emergency fund and started funding a retirement account, then you might consider opening a brokerage account as a place to invest after-tax dollars.

Most often, the account you have set up in a brokerage will be a flexible investment. This is great because you have use of the money for various purposes, and you are not tied to specific withdrawal requirements the same way you would be in a retirement or college 529 account. 

Kaysian Gordon:

When you're looking to start the process of investing after you have saved the amount that you need for your emergency funds — and typically that's three to six months— you should start looking to invest other personal cash. Make it a point to contribute as frequently as you can, because that's how wealth is built over time.

Is there any other advice you'd offer someone who's considering opening a brokerage account?

Before saving with a taxable account, consider the order of where you should save first to accomplish your financial goals best. Are you comfortable taking responsibility in making investment decisions? How are you going to rebalance? How are you going to take emotion out of investing? Taxable accounts can be a good vehicle if you can check all the boxes.

There is a difference between trading and investing. Trading is exchanging [which is] usually short-term in nature. Investing involves time and is long-term in nature.

Do your research because that's very important. Think about the things that are important to you. Do a comparison of the different names that you hear and see what the benefits are of one company over another before making a decision. 

Nothing will have everything you need, but go with the brokerage account with the best of what you need.

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Southwest Airlines Will End Its Longstanding Open-Seating Policy

The airline said it was scrapping its trademark, 50-year tradition of offering open seating, where passengers choose seats once they have boarded the plane.

By Jenny Gross and Danielle Kaye

Southwest Airlines will start assigning seats to passengers, ending its longstanding policy of allowing passengers to pick their seats once they have boarded, the airline said on Thursday.

The new procedure will be implemented to increase revenue and in response to feedback from customers, 80 percent of whom report preferring an assigned seat, Southwest said.

“This is the right choice — at the right time — for our customers, our people and our shareholders,” said Bob Jordan, the president and chief executive of Southwest.

Even though the airline has been known for its unique seating model for more than 50 years, preferences have evolved, with more customers taking longer flights where they prefer a seat assignment, the statement said. The new policy was reported earlier by The Wall Street Journal .

The changes bring Southwest, which for years has distinguished itself by offering low prices and a simple business approach, more in line with conventional airlines like American Airlines and United Airlines.

Southwest makes a little less than $1 billion from fees it charges for the ability to board early and “ancillary” services, Mr. Jordan said Thursday on a conference call with analysts to discuss the company’s second quarter results. The company expects that earnings from the move to assigned seating and offering seats with extra legroom will be “substantially north of that,” he said.

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