Purpose: Used to map out a web startup's business model, strategies, and metrics, as well as launch and growth plans.

Key Attributes: Web startup business plans are a little different than traditional business plans. Because it is relatively cheap to start a web business, and because the business model and strategy is often very fluid, most investors will want to see you putting your time and money into coding, iterating & pivoting, and driving user traffic vs. mapping out in detail your business strategy.

Nonetheless, it is still very valuable to periodically asses where you're at, where you want to go, and how you plan to get there. It is also useful to develop a document that can be used to present to potential investors, or given to new hires to get them up to speed on your strategy.

Thus, for web-based businesses, we typically develop a shorter Business Summary or Concept Overview that can be modified as rapidly as the business changes. We often focus on building metrics to track and measure your progress, such as user growth assumptions, conversion rates, upsell rates, virality of marketing campaigns, per-user cost to acquire and revenue metrics, and so forth.

Who Needs It:

» Internet startups in social networking, gaming, virtual worlds, and other online media
» Mobile app developers creating business models and distribution on multiple platforms
» Any web startup who needs to present their business case to investors, partners, or employees.

What It Does:

» Gets all parties (management, employees, etc.) aligned, and sharing the same vision
» Focuses and prepares the startup for rapid iteration and evolution
» Establishes metrics, goals, and roadmaps for growth and expansion.

Back to Business Plan Overview

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