To have a breakthrough idea is not enough to launch a startup. The idea should be supported by a business plan. Together with IT businessman and investor Rustam Gilfanov, we try to figure out what one needs to take into account when designing a business plan for a startup.
“There is a difference between a business and a startup. A startup is the launch of a fundamentally new solution, a market innovation. The goal of a startup is to turn into a business.” — Mr. Gilfanov explains.
At the same time, a startup must meet the principles of business planning even before it is launched. No investor will consider an idea that lacks a development strategy.
This is what Rustam Gilfanov advises newcomers to pay attention to when preparing a business plan.
Test the Idea.
Define the problem that your idea solves and conduct an initial marketing research. Make sure there will be a demand for your product. When compiling a business plan, focus on specific market segments. The fact that you personally like your idea will fail to convince investors.
Define the Market Potential.
Collect and analyze information about the size of the niche you can occupy. Check whether there are growing trends in the market. In the post-coronavirus period, the demand for technologies that help businesses compensate for losses will only increase. Focus on how your product can help mitigate economic shocks.
Build a Financial Model.
Most of all, the investor wants to get to know when their investments will pay off. To give an answer, you need to build a financial model and conservatively evaluate the market. Startups often tend to forget about inflation, taxes and interest on loans. Calculate the financial model for three years. The first year will be as true to life as possible. The indicators for the other two may change depending on the new input data. Remember that investors will not appreciate a business plan that features exorbitant salaries of the founders.
Working on a business plan will help you understand how the business will grow. Then, you will be ready to answer the most difficult questions of your investors.
A brief curriculum vitae.
Rustam Gilfanov is an IT company co-founder, IT businessman and international investor.
Rustam Gilfanov was born on January 6, 1983, in the small settlement of Basim, Perm region, in the family of a military man and a teacher.
In 2006, Rustam Gilfanov, together with his partners, opened an international outsourcing IT company in Kyiv. Today, this company is the largest software developer for the gaming industry, marketing and finance.
A few years ago, Mr. Gilfanov moved away from operational duties in an IT company to focus on international investment in the field of financial technology, gaming and video streaming. It is also important for Rustam Gilfanov to develop charity projects in Ukraine, the largest of which are “ЛакіБукс” and “Бібліотеки Майбутнього”.