Technology service firms business plans will vary widely depending on the nature of the technology service itself. If your company performs on-site IT support for other businesses, your market analysis is a matter of how many establishments there are in the region that have am adequate budget for IT outsourcing. On the other hands, if your technology service is the development of a web-based application that any number of people can use, the concept of “market reach†needs to be rethought. In short, the starting gate question is “what do you deliver?†Knowing exactly what you plan to introduce to the market helps define the value proposition for your business and lets you know how many potential customers there are, which is vital for the financial model. Answer these questions in your business plan:
• How would you define the problem your service suite solves?
• What companies compete against you now?
• What are the business risks and liabilities?
• What marketing will you do going forward to raise brand awareness?
• Can you show how you will allocate the new capital (by budget category)?
In most cases, the business plan for a technology services firm will require a five year financial forecast. An investor will need to see what the investment proposition is (their share in your company) and the Year 5 net profit and profit margin you project. You should be able to show the assumptions in a detailed table, and pin any number you can to competitive comparables or industry averages, even if it originated as an estimate. The competitive comparison in the body of the plan should examine the other companies that do what you do, and try to get to the bottom of their strengths and weaknesses. Want to outsource this task? The MasterPlans business planning team includes market analysts, financial experts, editors, and dedicated project leads prepared to get your idea across on paper. Call a consultant today for a free quote and consultation: (877) 453-2011.
