Subscription-based business plans are generally used for companies that offer a service (or a product) which is purchased on a subscription. Under this business model, a user or client pays monthly for the ongoing privilege of using a website, accessing a product, or renting a car, etc. A subscription model makes possible a very important feature of a business' sales forecast: recurring revenue. With a subscription program, you can bill customers every month (or, in some cases, every week or every quarter) and realize the effect of automatic revenue from a one-time sale in the past. A subscription-based business plan should show:
• What your core business offerings are
• The timeline for product/service roll-out
• The marketing concepts you can use in support of your model
• The market need your business can fulfill
• The use of funds you envision
For the use of funds in a subscription model business plan, you should illustrate exactly where your funds come from and what purpose you put them to. It's critical that an investor can see their ROI, yes, but they also need to be able to determine what value the funds have for them in the future. The pro forma should include a revenue forecast, break-even analysis, profit and loss statement, cash flow, and a balance sheet for year one. Also the subscription based business plan should show an implementation strategy, a market analysis that shows the opportunity, and a management team summary that also indicates gaps. Need help making this business plan work for you? Call the planning experts at MasterPlans to get help with your business plan: 877-453-2011.
