What’s a good software business plan look like?

By  Maham Qasim

November 26, 2021 3:21 pm EST

A successful software company will have the following three components to their business plan: products/services, marketing strategy and management.

What can you offer the customer?

The first component is what you offer customers waiting for your upcoming releases or upgrades; this could be anything from an existing product to new features being added to previously released updates.

To do well with this aspect of things, though, would require some initial investment on our part. So it’s best if these items were planned at least five years ahead of time before launching them into public availability just like any other kind-of big idea someone might come up with. Instead looking out the window wishing they had something great cooked up but not knowing where else to start except themselves (or rather – how much effort should one put forth?)… And not unlike any other business plan, get a committee together to help work out the kinks.  

What is your marketing strategy?

The second component is your plan for marketing and how you’re going to get the word out about what you’ve got and how it applies to the lives of those around you… The goal here is to find a way so that someone finds something they like in what they are doing, which invariably leads them to tell others about it as well.

For instance, if you have an idea for a new online store that specializes in selling stuffed animals, then the marketing strategy portion of your business plan would include ways to get stuffed animal blogs involved with what you’re doing and how they’re going to promote your site when it launches. Or suppose you’ve come up with a software application that’s meant to help people get all their finances together in one place. In that case, your marketing strategy will include ways to reach out to personal finance bloggers and get them involved with your project early enough to write about it before it’s launched whenever they want.  

How are you going to manage your new business?

The third component includes the logistics of how your company will be managed and who’s going to do what, along with the various ways you’re bringing in money over time.

What are the financial benefits?

One example would include getting any partners you have on board to invest capital into your business so that it becomes a viable project for all those involved… Then as soon as you’ve got enough money in the bank to pay for development costs, you can start hiring people to work on it.

Another example would include getting some angel investor backing so that when your app launches, suddenly, there’s this number of potential customers already lined up and ready to try it out right off the bat.

And yet another example would be getting people to subscribe for a monthly service fee so as soon as you launch, your income is guaranteed for as long as the program is available whenever they want.

No matter what example it might be, these kinds of things are definitely worth looking into because there are potential profits to be had every step of the way, and you don’t even have to put any of your own money at risk, especially if it’s a good idea… And for the most part, people like to see other people succeed (even more so when they can share in the profits), which invariably leads them to wanting to be part of this particular equation early on.

What are you spending money on?

The fourth and final component includes any money you might be spending on the project, such as buying software and other kinds of office equipment and services… Or getting a business license and paying rent to use office space.

If your company needs any kind of capital to get it off the ground, then this would be where you list out the various amounts you’ll be spending along with what they’re for.

Conclusion

In a nutshell, having a business plan is an absolute must if you’re going to involve other people regarding something you’ve created because it’s one thing to have a brilliant idea and quite another to attract the necessary resources needed in order to make that idea into a real-life application. Do it right the first time around and save yourself some heartache down the line.


Maham Qasim

Maham is a copywriter and content creator who's always been drawn to the idea that there's more than one way of getting things done. Her writing career can be thought of as just another side hustle for her; when she isn't crafting content or reading Oscar Wilde, Maham often strategizes about how best to reach out with an engaging voice in this ever changing marketplace!

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