free saas business plan template

SaaS Business Plan Template

Written by Dave Lavinsky

SaaS Business Plan

Over the past 20 years, we’ve helped over 10,000 entrepreneurs create successful SaaS (Software as a Service) business plans. This step-by-step guide will show you how to start and grow your SaaS business. You’ll learn how to make a plan that outlines your business idea, target customers, customer acquisition strategy, revenue model, and expenses. Let’s get started on building your SaaS company today!

Download our Ultimate SaaS Business Plan Template here >

What is a SaaS Business Plan?

A traditional business plan provides a snapshot of your SaaS business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your customer acquisition strategy for obtaining new clients. It also includes market research to support your business concept.

Why You Need a Business Plan for a SaaS Company

Having a comprehensive business plan is a critical step for any SaaS startup or company looking to scale. It acts as a roadmap, guiding the development and growth phases by setting clear, actionable objectives. A well-structured business plan not only helps in aligning the organizational activities towards achieving business goals but also plays a pivotal role in securing funding. Investors and lenders often require a detailed business plan to understand the potential of your SaaS business before committing their resources. Additionally, a business plan enables you to anticipate challenges and plan effective solutions in advance, thereby reducing risks and increasing the likelihood of success.

Here are several key reasons and benefits for creating a comprehensive business plan for a SaaS startup or an existing company:

• Helps Secure Funding : A solid business plan is essential for attracting potential investors and securing loans.
• Guides Decision-Making : It serves as a blueprint for making informed decisions and navigating your business towards its goals.
• Facilitates Growth : Helps in identifying growth opportunities and outlining strategies to capitalize on them.
• Reduces Risks : By anticipating potential challenges, a business plan allows for the development of contingencies to mitigate risks.
• Enhances Understanding of Market : Through research, it provides insights into the competitive landscape and customer needs.
• Improves Communication : Acts as an effective tool to communicate the vision and strategy of your SaaS business to team members and stakeholders.

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How To Write a Business Plan for a SaaS Company

Your SaaS business plan should include the following 10 key elements:

Executive Summary

• Company Overview

Industry Analysis

Customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your SaaS business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of SaaS business you are operating and the status; for example, are you a SaaS startup, or do you have an existing business that you would like to grow?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the SaaS industry. Discuss the type of SaaS you are offering. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of SaaS you are offering.

For example, you might offer the following options:

• Horizontal SaaS – This SaaS business model allows big SaaS businesses to serve a varied customer base from a multitude of industries. Services can be expanded to incorporate a variety of software categories.
• Vertical SaaS – This business model includes solutions that are created for a specific customer type of industry. This software focuses solely on that industry’s needs.

In addition to explaining the type of SaaS you provide, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What is your mission statement?
• What milestones have you achieved to date? Milestones could include usability goals you’ve reached, number of new subscriptions, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

The Software as a Service (SaaS) industry in the United States is a significant and rapidly growing sector. As of 2023, the market value of the SaaS industry in the U.S. is approximately $108.4 billion . This industry is expected to continue its growth trajectory, with projections indicating that it could reach a market value of $225 billion by 2025, solidifying the U.S. as the world’s largest SaaS market.

In your industry analysis, you need to provide an overview of the SaaS industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the SaaS industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your business strategy particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your SaaS business plan:

• How big is the SaaS industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your SaaS service? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section must detail the customers you serve and/or expect to serve. This includes identifying your target market and their characteristics such as age, income, location, etc.

By using customer segmentation techniques, you can further refine your target market and tailor your marketing efforts to specific groups of customers. Examples of segmentation in the SaaS industry may include the following customer segments:

• Small and medium-sized businesses
• Enterprises
• Startups/entrepreneurs
• Non-profit organizations

It’s essential to have a deep understanding of the needs, pain points, and preferences of your target audience. This knowledge will help you develop a product that meets their specific requirements and effectively market your SaaS solution.

In addition to demographics, you should also consider the psychographics of your target market, such as their behavior, values, and lifestyle. This information can give you insights into how to position your product and messaging to resonate with potential customers.

Conducting customer surveys and market research can be helpful in gathering this data. You should also analyze your competition’s customer base to identify any gaps or opportunities within the market.

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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other SaaS services that offer similar features and target the same market segments as your product. Understanding these competitors involves analyzing their product offerings, market position, strengths, and weaknesses. This analysis will help you identify opportunities for differentiation, allowing your SaaS solution to stand out in a crowded market.

Indirect competitors are other options customers may use that aren’t direct competitors. This includes customized software solutions and open-source software. You need to mention such competition to show you understand that not everyone who needs software will subscribe with a SaaS company.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• How many customers do they serve?
• What types of software do they offer?
• What is their pricing strategy (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of this section is to document your competitive advantages. For example:

• Will you provide superior products?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to use your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Traditionally, a detailed marketing plan includes the four P’s: Product, Price, Place, and Promotion.

This section should include the following:

Product : in the product section, you should reiterate the type of SaaS business that you documented in your Company Analysis. Then, detail the specific solutions you will be offering. For example, in addition to Customer Relationship Management solutions, will you also offer Email Marketing solutions?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your SaaS company. Document your location and mention how the location will impact your success. For example, is your SaaS production or support office located in the US or in India, etc. Discuss how your location might impact customer attraction or retention.

Promotions : the final part of your SaaS marketing plan is the promotions section. Here you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider in your marketing mix:

• Search Engine Optimization (SEO)
• Advertising in trade magazines
• Reaching out to associations that correspond with the industry or industries you are targeting
• Publishing articles or writing guest posts on relevant blogs
• Social media marketing
• Radio and/or TV advertising

Understanding and Managing Customer Acquisition Cost (CAC) In the SaaS industry, the Customer Acquisition Cost (CAC) directly impacts profitability and long-term success of your business. Customer acquisition costs are the total cost of the sales and marketing plan that is needed to acquire customers. To keep this cost low, companies should focus on:

• Efficient marketing strategies like inbound marketing, which attracts customers through content creation, social media, and SEO.
• Leveraging customer referrals by incentivizing existing users can significantly reduce acquisition costs, as satisfied customers are likely to spread the word.
• Implementing a robust customer relationship management system to nurture leads and personalize the customer journey can also increase conversion rates, thereby lowering the overall CAC.

By focusing on these strategies, SaaS businesses can optimize their spending and improve their return on investment in customer acquisition efforts.

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your SaaS business, such as attracting customers, running the customer helpdesk, processing paperwork, etc.

Long-term goals are the milestones you hope to achieve using key metrics. These could include the dates when you expect your 100th subscription, or when you hope to reach $X in sales revenue. It could also be when you expect to hire your Xth programmer, or when you expect to launch a new solution.  

To demonstrate your SaaS business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

• Upper Management – In this section, introduce your CEO and other top-level executives. Detail their experience in the industry, leadership skills, and any relevant achievements.
• Development Team – Describe the members of your development team and highlight their technical expertise and any previous successes related to SaaS or software development.
• Sales Team – Introduce your sales team members, emphasizing their experience with SaaS products and their track record of generating sales.
• Support Team – Detail the members of your customer support team, highlighting their knowledge of your SaaS solution and their ability to provide excellent customer service.

By showcasing a strong and well-rounded management team, you not only demonstrate the potential for success but also instill confidence in potential investors or partners.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in software development or deployment, and/or successfully running small businesses.  

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 10 enterprise subscribers or 500 individual subscribers? And will subscriptions grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $200,000 on building out your SaaS solution, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $200,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a $100,000 customization contract that would cost you $75,000 to fulfill. Well, in most cases, you would have to pay that $75,000 now for employee salaries, hosting, utilities, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an SaaS business:

• Location build-out including design fees, construction, etc.
• Cost of equipment like computers, design and project management software, etc.
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office design blueprint or location lease.  

Free Business Plan Template for a SaaS Business

You can download our free business plan template PDF . Our sample SaaS business plan is another free resource to help you get started on your own SaaS startup business plan.  

SaaS Business Plan Summary

Putting together your own business plan will improve your company’s chances of success. The business planning process will help you better understand your target audience, your competition, and your business strategy. You will also develop the marketing strategies needed to better attract and serve your target market, an operations plan to focus your efforts, and financial projections that give you business goals to strive for and keep your company focused.

Growthink’s Ultimate SaaS Business Plan Template allows you to quickly and easily complete your Saas Business Plan.

Sources of Funding for SaaS Businesses

With regards to funding, the main sources of funding for a SaaS business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a SaaS business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Additional Resources For SaaS Business Owners

• SaaS Marketing Strategies
• SaaS Pricing Strategies To Consider
• SaaS Accounting: Finances For A Subscription Model Company

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   See how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

SaaS Business Plan Template

Written by Dave Lavinsky

SaaS Business Plan

You’ve come to the right place to create your SaaS business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their SaaS companies.

Saas Business Plan Example

Below is a saas business plan template to help you create each section of your own business plan.

Executive Summary

Business overview.

All In One is a startup B2B SaaS company located in Los Angeles, California. The company is founded by Melissa Johnson, a business strategist with more than fifteen years of experience helping other businesses develop their operations and processes to optimize customer management, sales and marketing, and project flow. Melissa has garnered a positive reputation of helping companies become more profitable by using SaaS technologies to improve their efficiency. Now, Melissa is ready to venture out with her own SaaS platform. As the name implies, All In One will be a one-stop-shop SaaS platform to help enterprises of all sizes to streamline their saas business operations.

Melissa has enlisted the services of a software developer, Paul Smith, to be the Chief Technology Officer of the company and manage the technical aspects of the SaaS platform. Melissa plans on recruiting a small team of highly qualified professionals to help manage the day to day tasks of running a SaaS company including sales and marketing, customer support, financial reporting, and technology maintenance and optimization.

All In One will provide a comprehensive array of SaaS services beneficial to any business owner who wants to improve their efficiency. All In One will allow each client to ensure that every aspect of their enterprise is being managed seamlessly. All In One will be the ultimate choice for B2B SaaS services while being the most user-friendly platform around.

Product Offering

The following are the solutions that All In One will provide:

• Customer Relationship Management (CRM)
• Project Management (PM)
• Enterprise Resource Planning (ERP)
• Sales Funnel Management
• Financial Management
• Human Resources Management (HRM)
• Communication Solutions
• Automated Marketing Solutions

Customer Focus

All In One will target all small-to-medium (SMEs) and corporate businesses in the United States. They will target businesses in every industry and sector. They will also target companies that already use other SaaS platforms as well as companies brand new to SaaS solutions. No matter the client, All In One will deliver the best interface, customer support, and net profit.

Management Team

All In One will be owned and operated by Melissa Johnson. She has recruited an experienced software developer, Paul Smith, to be her Chief Technology Officer and help manage the SaaS technology.

Melissa Johnson is a graduate of the University of California with a Bachelor’s degree in Strategic Management. She has been helping other businesses develop their operations and processes to optimize customer management, sales and marketing, and project flow for over fifteen years. Melissa has garnered a positive reputation of helping companies become more profitable by using SaaS technologies to improve their efficiency. Melissa’s strategic skills and diligence have allowed her to develop a network of loyal clients.

Paul Smith has been a software developer for over a decade. He has a Software Development degree from New York University and has created a dozen successful software applications for B2B purposes. Melissa relies on Paul’s technical expertise and ability to transform her vision into an easy-to-use platform.

Success Factors

All In One will be able to achieve success by offering the following competitive advantages:

• Helpful, knowledgeable, and efficient sales and customer support team that will be available 24/7 to answer customer questions, help troubleshoot any issues that arise, and record feedback to improve the platform.
• Full suite of solutions to manage all aspects of business operations in one user-friendly, streamlined platform.
• All In One is an intuitive smart SaaS platform that learns the more it’s utilized, so each user can have a personalized experience that works best for them.

Financial Highlights

All In One is seeking $250,000 in debt financing to launch its SaaS business. The funding will be dedicated towards UX design and other software development. Funding will also be dedicated towards office equipment, supplies, and materials. Additional funding will go towards three months of overhead costs to include payroll of the staff, rent of an office space, and outbound marketing costs. The breakout of the funding is below:

• UX design and software development: $100,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $120,000
• Marketing and Customer Acquisition Costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for All In One.

Company Overview

Who is all in one.

All In One is a newly established B2B SaaS company dedicated to helping businesses of all sizes achieve optimal efficiency in their operations through technology. All In One is based in Los Angeles, California, but will be available to companies across the United States. All In One will be the most reliable, user-friendly, and efficient choice for business owners of small-to-medium enterprises (SMEs) and large corporations in any industry. All In One will provide a comprehensive menu of SaaS solutions for any business owner to utilize. Their full-service approach includes a comprehensive set of sales and marketing, project management, human resources management, and customer relationship management solutions all in one easy-to-use platform.

All In One History

All In One is owned and operated by Melissa Johnson, a business strategist with more than fifteen years of experience helping other businesses develop their operations and processes to optimize customer management, sales and marketing, and project flow. Melissa has garnered a positive reputation of helping companies become more profitable by using SaaS technologies to improve their efficiency. Melissa’s strategic skills and diligence have allowed her to develop a loyal client base.

Since incorporation, All In One has achieved the following milestones:

• Registered All In One, LLC to transact business in the state of California.
• Has a contract in place to lease a small office space.
• Reached out to numerous contacts to include former clients and business owners to begin getting beta users for the new platform.
• Began recruiting a small team of sales and marketing associates, customer support associates, an accountant/bookkeeper, and a technology officer.

All In One Services

Industry analysis.

The global SaaS industry is valued at an estimated $152B (USD). The market is expected to grow to $208B by the year 2023. According to Statista, there are over 15,000 SaaS companies in the U.S. The largest industry players include Adobe, Microsoft, and Salesforce.

SaaS is a major component of cloud computing. Businesses rely on SaaS for everything from video conferencing to sales and marketing automation and customer relationship management. As more companies grow to depend on these services, demand for SaaS offerings will continue to increase. Industry trends include an increased use of artificial intelligence, big data, and integrated cloud services.

The market is highly fragmented with many companies offering similar services. Industry operators can achieve a competitive advantage by developing recognizable and memorable branding and marketing campaigns, providing exceptional customer support, and offering value-add services in addition to the SaaS platform itself.

Customer Analysis

Demographic profile of target market, customer segmentation.

All In One will primarily target the following customer profiles:

• Small-to-medium enterprise (SME) business owners in any industry/sector.
• Corporate/enterprise businesses in any industry/sector.
• Business owners who are looking for a better SaaS platform than what they are currently using.
• Business owners who have never used Saas, but would like to get started to improve their operational performance.

Competitive Analysis

Direct and indirect competitors.

All In One will face competition from other saas businesses with similar business profiles. A description of each competitor company is below.

Get Customers: Sales and Marketing SaaS

Get Customers provides a SaaS platform catering to businesses of any size. The company’s main offering is for automated sales and marketing solutions, but they have recently branched out to offer more comprehensive services including human resource, customer relationship, and financial management tools. Based in Seattle, Washington, Get Customers offers its solutions to businesses and organizations across the United States.

Get Customers’ promise is to deliver a reliable SaaS solution, effective communication, honesty and integrity, and 24/7 availability of the customer support team. Get Customers’ team of experienced SaaS developers and business professionals assures the platform will allow the business operations of its clients to be run smoothly, freeing the business owners from day-to-day operational hassles.

Competitive SaaS Solutions

Competitive SaaS Solutions is a Los Angeles-based B2B SaaS company that provides outstanding business solutions for small business owners. Competitive SaaS Solutions takes the headache out of dealing with multiple SaaS platforms that are not always compatible. They provide comprehensive SaaS services in one place. SaaS solutions included in the platform are CRM, HR, PM, ERP, automated marketing, financial reporting, and video conferencing. The owners of Competitive SaaS Solutions are seasoned business owners and technology professionals so they understand how SaaS is best built, implemented, and managed.

Better Built SaaS

Better Built SaaS is a trusted B2B SaaS company that provides superior service to businesses of all sizes. They are able to provide a one-stop shop for business owners who are interested in optimizing their operational processes through automation. Better Built SaaS is able to serve new businesses and startups from the beginning and established corporations looking to improve their profit margins. They are also able to ease the stress of managers who are overwhelmed by the day to day hassles and complexities that come with running a business.

Their pricing structure is simple and straightforward. Better Built SaaS offers three pricing tiers for their services – the Basic Plan, the Premium Plan, and the Comprehensive Plan. Business owners can choose the plan that best suits their needs and change their plan at any time.

Competitive Advantage

All In One will be able to offer the following advantages over their competition:

• Helpful, knowledgeable, and efficient customer support team that will be available 24/7 to answer customer questions and troubleshoot any issues that arise.
• An intuitive platform that works for any business size in any industry.
• Comprehensive solutions that can be customized to best fit each client’s needs.

Marketing Plan

Brand & value proposition.

All In One will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for All In One is as follows:

Word of Mouth/Referrals

Melissa Johnson has built up an extensive list of contacts over the years by providing exceptional service and expertise to her clients. Many former clients have communicated to Melissa that they are interested in signing up for the new SaaS and are happy to help spread the word of All In One to their network. Additionally, All In One will use a customer referral program and provide existing clients with discounts for referring new clients.

Website/SEO Marketing

All In One will recruit an in-house marketing director to design and maintain its website. The website will be well organized, informative, and list all their services that All In One is able to provide. The website will also list customer support contact information, pricing plans, and demo videos.

The marketing director will also manage All In One’s website presence with SEO marketing tactics so that any time someone types in the Google or Bing search engine “B2B SaaS company” or “SaaS business solutions”, All In One will be listed at the top of the search results.

Social Media Marketing

All In One will use social media platforms including TikTok, YouTube, Twitter, Instagram, LinkedIn, and Facebook to promote the brand and attract customers. The company’s in-house marketing director will oversee the social media implementation.

Content Marketing

The company will use content marketing on its website and social media to help drive traffic and convert customers. Content will be high quality, informative, and keyword optimized.

The pricing of All In One will be moderate and on par with competitors so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for All In One.

Operation Functions:

• Melissa Johnson will be the Owner and CEO of the company. She will oversee all customer support staff and manage client relations. Melissa has spent the past year recruiting the following staff:
• Paul Smith – Chief Technology Officer who will provide all technical support for the platform.
• Bill Brown – Accountant/Bookkeeper who will provide all client accounting, tax payments, and monthly financial reporting.
• Kelly Jones – Marketing Manager who will work on all sales and marketing initiatives for All In One, including customer acquisition.

Milestones:

All In One will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract to lease the office space.

8/15/2022 – Finalize personnel and staff employment contracts.

9/1/2022 – Complete software development of the platform.

9/15/2022 – Begin networking and outbound marketing efforts.

9/22/2022 – Begin moving into the office.

10/1/2022 – All In One opens for business and launches the beta platform.

Financial Plan

Key revenue & costs.

The revenue drivers for All In One are the SaaS subscription fees that will be charged to the clients for use of the SaaS platform and services. All In One will have a tiered subscription model with a basic, standard, and premium subscription options. In addition, the company will have customized service options for an additional fee.

The cost drivers will be the overhead costs required to maintain a SaaS platform and staff the office. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

All In One is seeking $250,000 in debt financing to launch its SaaS business. The funding will be dedicated towards UX design and other software development. Funding will also be dedicated towards office equipment, supplies, and materials. Additional funding will go towards three months of overhead costs to include payroll of the staff, rent of an office space, and marketing costs. The breakout of the funding is below:

• Marketing and customer acquisition costs: $10,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of monthly subscriptions: 15
• Average fees per month: $50,000
• Office lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, saas business plan faqs, what is a saas business plan.

A SaaS business plan is a plan to start and/or grow your SaaS business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your SaaS business plan using our SaaS Business Plan Template here .

What is the Main Type of Saas Business?

There are a number of different kinds of SaaS, some examples include: Horizontal SaaS and Vertical SaaS.

How Do You Get Funding for Your SaaS Business Plan?

SaaS are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.  This is true for a business plan for any Saas company, including a B2B Saas business plan.

A well crafted Saas business plan is essential for securing funding from any type of potential investor.

What are the Steps To Start a SaaS Business?

Starting a SaaS business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Saas Business Plan - The first step in starting a business is to create a detailed Saas business plan that outlines all aspects of the venture. The business plan should include market research on the Saas industry and potential target market size, information on the services or products you will offer, marketing strategies, pricing details and a solid financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your Saas business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your Saas business is in compliance with local laws.

3. Register Your SaaS Business - Once you have chosen a legal structure, the next step is to register your Saas business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your SaaS business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where your saas business will be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary SaaS Equipment & Supplies - In order to start your SaaS business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your SaaS business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

• Sample Plans
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SaaS Business Plan

Looking to launch and scale your SaaS business? Check out this comprehensive guide along with a free template that walks you through building a successful SaaS business plan in just 8 simple steps.

Did you know that the SaaS industry is projected to be worth over $247 billion globally by the end of 2024? This shows a booming demand for software solutions that make life easier and businesses more efficient.

Now, if you have a great idea for software that solves real problems, turn that into SaaS and make it a successful venture.

But having an idea and building a SaaS product is just the start. You need a well-thought-out plan that’s necessary to compete in the highly competitive SaaS market today.

Need help drafting your SaaS business plan ? Don't worry!

This SaaS business plan template will help you get started and guide you in creating a detailed business plan for your SaaS venture.

But first, let’s understand why you need a SaaS business plan.

Why do you need a SaaS business plan?

Having a SaaS business plan is essential for establishing a solid foundation for your software-as-a-service offering.

Here’s why:

Defines your business model

Drafting a SaaS business plan encourages you to think carefully about your core offering, audience, revenue streams, and pricing models.

This helps refine your approach, ensuring your SaaS venture is both scalable and profitable.

Secures financial backing

You need a well-defined business plan if you want to attract investors or get a loan. Investors at this stage need to see a good product-market fit, your revenue model, and growth assumptions. They will be trying to validate if there is a clear product strategy where they can place their bets.

They will also inquire about your profitability strategy and how you plan on delivering a return for their money.

Manages daily operations

More importantly, a comprehensive business plan serves as the guiding compass for your entire venture helping you navigate complexities from building to launching and sustaining a SaaS product.

It also helps you with products or marketing, customer support, and infrastructure scaling.

Mitigates potential challenges

SaaS businesses face unique challenges like data security concerns, customer retention, and maintaining uptime.

By having a comprehensive business plan, you can identify these challenges early and set up strategies to address them, helping you avoid mistakes in your business plan and secure long-term growth.

Now that you understand why a SaaS business plan is important, it’s time to see how to create one tailored to your needs.

How to write a SaaS business plan?

Are you an experienced SaaS provider looking to scale your business, or an entrepreneur planning to launch your first SaaS venture who wants to make a difference in the market?

Creating a solid SaaS business plan is an important step toward ensuring the success of your startup and long-term growth.

Here are the essential elements to include when crafting a detailed business plan:

1) Executive summary

An executive summary provides a concise overview of your entire SaaS business plan, giving stakeholders a quick introduction to your company and its goals.

It’s the first section investors or partners will read to understand your SaaS business. If it's not engaging or clear, they may lose interest and pass on your proposal. So, keep your executive summary clear, succinct, and compelling.

Key details to include in this section:

• Business concept and its purpose
• Mission and vision statements
• SaaS industry landscape & target customers
• Unique selling points (USPs)
• Go-to-market strategy
• Financial projections

In short, this section should grab the reader’s attention and motivate them to explore your business further.

2) Company overview

It follows the executive summary and gives an expanded, more detailed, or practical assessment of your SaaS business.

Now this is where you would go to great lengths describing your SaaS business—from its name to future aspirations. It will not only help the visitors to understand what you are selling but also provide enough information via your platform that investors or other partners can make an informed decision.

You should include the following details:

• Business legal structure (e.g., sole proprietorship, LLC, or corporation)
• Core values and vision
• Names of founders and key members
• Company history
• Notable milestones or achievements (if applicable)
• Short-term and long-term business goals

You can also highlight any industry-specific regulations or compliance requirements relevant to the SaaS sector. This could include data security standards or software licensing, helping your business meet all necessary legal and operational guidelines.

3) Industry and market analysis

The industry and market analysis section provides an in-depth overview of the SaaS landscape you plan to operate in. It examines your target customers , key competitors, and overall market conditions that could influence your success.

Detailed research is essential to gather insights into the market environment and factors specific to the SaaS industry. This analysis will help you refine your business strategy and position your company for success.

Key elements to include:

• Market size and growth potential
• Target audience and their pain points
• Emerging trends within the SaaS industry
• Direct and indirect competitors
• Your competitive advantages
• Relevant regulatory and compliance requirements

By understanding the market’s scope and potential, you can identify your ideal clients more effectively. This allows you to tailor your strategies to meet their needs while staying competitive in a rapidly evolving sector.

4) Competitor analysis

This section gives you a full, in-depth scan of the primary rivals that your SaaS company is going up against to attract customers at different stages. Knowing who your direct and indirect competitors are helps you in recognizing opportunities, and obstacles that can be distinguished from the competitive offering.

To improve your competitive analysis , you also need to conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). This will help give you an overview of how your business is stacking up against the competition and will help pinpoint where your company may need to improve or grow.

Sample SWOT analysis for SaaS business plan is:

Key points to cover in this section:

• Direct competitors and their market position
• Indirect competitors offering alternative solutions
• SWOT analysis to assess your strengths, weaknesses, opportunities, and threats
• Competitive advantages your SaaS product offers
• Strategies to stand out in the marketplace

This will allow you to better understand your competitors and strategically position your SaaS business for success.

5) Sales and marketing plan

The sales and marketing plan details the strategies you'll employ to promote your SaaS business, drive sales, and expand your customer base.

As a SaaS provider, you need strategies that really show your target and tell them what exactly is different in your software services. This is how new customers will turn into loyal or repeat customers.

Tactics and techniques to consider:

• Use of social media to build brand awareness and engage with potential customers.
• Attend industry conferences and webinars to network and showcase your SaaS solution.
• Utilize content marketing by producing educational content like blogs, whitepapers, and case studies.
• It’s essential for you to optimize your website to be a success in the search engines and draw lots of organic traffic.
• Partner with industry influencers and thought leaders to amplify your reach.
• Implement targeted advertising through platforms like Google Ads and LinkedIn to attract relevant leads.

Outline any special promotions, referral programs, or introductory offers that could incentivize new sign-ups and encourage customer loyalty.

6) Business operations Plan

The business operations plan outlines how your SaaS company will function on a day-to-day basis. It helps potential investors believe that you have a great strategy for managing and scaling your business effectively.

Here’s what to include in your operations plan:

• Product development and maintenance
• Customer support
• Infrastructure and technology
• Operational workflow
• Data management

This plan will help ensure smooth operations, high-quality service, and effective growth management for your SaaS business.

7) Management team

Teamwork makes the dream work. There’s no doubt that a strong and organized management team plays an important role in the success of a SaaS business.

Because it shows how your company will be guided, how tasks will be distributed, and how your team will collaborate to achieve your business objectives.

In this section, introduce key members of your team, such as the CEO, CTO, product manager, and customer success lead. Highlight their backgrounds, roles, and responsibilities within the company.

Next, outline your organizational structure, detailing how roles are distributed and how each team member contributes to the overall mission.

SaaS business plan organization chart

If relevant, include any advisors or consultants who bring additional expertise and add credibility to your business plan.

8) Financial plan

The financial plan is a critical part of your SaaS business plan, providing a thorough overview of your financial health and sustainability.

This section typically includes various financial statements and forecasts, often broken down monthly or quarterly. It outlines how your SaaS company aims to meet its financial objectives over the next few years.

Key components to include in your SaaS financial plan are:

• Startup Costs
• Sales & revenue forecasts
• Operating expenses
• Profit and loss statement
• Cash flow projections
• Balance sheets
• Break-even analysis

Here’s an example of a few financial projections that you may refer to formulate yours:

 Income statement

Balance sheet,  cash flow statement, download a saas business plan template.

Ready to launch your SaaS business but need some extra help with your business plan? Look no further. Here's our free SaaS business plan template PDF to get you started.

Designed with SaaS companies in mind, this investor-friendly template provides a detailed guide and practical examples to help you create a compelling business plan.

After going through this guide, you now have a clear understanding of all the sections of a SaaS business plan and how to structure each one.

With this knowledge, creating a detailed plan for your SaaS company should feel more manageable.

However, building a comprehensive business plan from the ground up can be challenging, especially if you're new to it.

Don't worry—consider using an advanced AI business plan generator like Bizplanr . It allows you to craft actionable plans quickly and efficiently. Just answer a few straightforward questions, and you'll have your plan ready in minutes!

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Answer a few questions, and AI will generate a detailed business plan.

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Frequently Asked Questions

How detailed does my SaaS plan need to be?

A comprehensive SaaS business plan should encompass all of the major aspects of your business—from product offerings to target market and pricing strategies as well as financial forecasts. At the same time, it doesn’t have to be overly complex either.

It must be clear and concise to convey your idea effectively to investors, stakeholders, and your team.

How often should I review my SaaS business plan?

It’s recommended to review your business plan at least once every quarter or whenever significant changes occur in your market, product, or financial situation. Further, regular updates will give you an idea of whether your strategies are in line with your business goals and market situation or not.

Where can I find a complete business plan example for a SaaS startup?

You can explore various online resources, such as Bizplanr, Upmetrics, or SaaS-focused startup platforms that offer free or paid templates. These templates provide a solid structure and guidance on how to tailor a plan for your SaaS business.

Once my SaaS business plan is complete, what’s the next step?

After completing your SaaS business plan, the next steps include reviewing and refining the plan, validating your idea with market research, and securing funding if needed. Then, focus on developing your product, setting up operations, and launching your marketing strategy.

Stay adaptable, regularly revisiting and updating your business plan to align with market changes and company growth.

As the founder and CEO of Upmetrics, Vinay Kevadiya has over 12 years of experience in business planning. He provides valuable insights to help entrepreneurs build and manage successful business plans.

Follow Vinay Kevadiya

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How to Write a SaaS Business Plan

As a SaaS business founder and startup CEO with a track record of securing funding from multiple VCs, I understand the pivotal role a well-crafted saas business plan plays in the success of saas businesses.

Maybe you’re refining your customer acquisition strategy or outlining your overall business strategy, this solid plan is your roadmap to growth.

I’m going to share insights on developing an effective saas business model, from calculating customer acquisition cost to crafting a compelling executive summary.

We’ll learn how to align your traditional business plan with the unique needs of a saas company, ensuring you’re ready to capture the attention of target customers and investors alike.

• Download our Free SaaS Business Plan Template (PDF)
• Canva Link to SaaS Business Plan Template

Step 1 – Define Your Business Concept and Target Market

Creating a solid saas business plan starts with a clear understanding of your business concept and identifying your target market. These foundational elements guide the direction of your saas business and are crucial for aligning your offerings with market demands.

• Clearly articulate your business concept, focusing on the problem your SaaS solution addresses.
• Identify your target market by conducting thorough market research to understand potential customers and their needs.
• Analyze competitive advantages that differentiate your SaaS startup business plan from existing solutions.
• Consider how customer acquisition costs will affect your ability to acquire customers within your target audience.

Defining a strong business concept and understanding your target market can lay the groundwork for a successful saas business plan that appeals to both potential customers and investors.

Step 2 – Develop a Comprehensive Sales and Marketing Plan

A detailed marketing plan and sales strategy are vital components of your saas business plan template. They outline how you will attract and retain customers, and ultimately drive sales revenue.

• Craft a marketing strategy that leverages the most effective channels for reaching your target audience.
• Outline your sales and marketing plan with specific actions to enhance customer relationship management solutions.
• Consider how many customers you need to reach your financial projections and adjust your strategies accordingly.
• Highlight innovative marketing strategies that can give your SaaS business a competitive edge.

A robust sales and marketing plan is essential for acquiring customers and boosting the visibility of your saas business, ensuring sustained growth and engagement.

Step 3 – Outline Your Financial Plan and Projections

Financial planning is indispensable for demonstrating the viability of your saas business to potential investors. Accurate financial projections help you understand the financial health and forecast the growth of your business.

• Prepare detailed financial projections that cover key metrics such as sales revenue and customer acquisition cost.
• Include a comprehensive overview of your financial plan, ensuring it aligns with your overall business planning.
• Analyze the financial implications of your target market and customer acquisition strategies on your revenue streams.
• Emphasize the importance of a solid business plan in securing funding and building investor confidence.

Developing a robust financial plan, you convey the financial potential of your saas business makes it attractive to potential investors and stakeholders.

Step 4 – Assemble a Strong Management Team

The management team is a critical element in any business plan, showcasing the expertise and leadership driving the saas business forward. Their experience and skills can significantly influence the success of your business plan.

• Highlight the qualifications and experience of each member of your management team.
• Explain how their expertise contributes to achieving the business goals and enhances competitive advantages.
• Describe the roles and responsibilities within the team, emphasizing their impact on customer acquisition and retention.
• Showcase any past successes in scaling businesses or managing similar saas companies.

A well-rounded management team not only enhances the credibility of your saas business but also reassures potential investors of your capability to execute the business plan effectively.

Important Terms to Know

Download our free saas business plan template.

Download our Free SaaS Business Plan Template today. Perfect for saas businesses and startups, this comprehensive guide will enhance your customer acquisition strategy and streamline project management.

If you’re drafting a new business plan or refining traditional business plans, then our template is tailored to meet the unique needs of software as a service ventures.

Start crafting your winning strategy and launch effective marketing campaigns with ease.

Join Our SaaS Business Community

We want to learn from you, and we also want you to learn from us.

Find expert insights on crafting a saas business plan and refining your business strategy.

Our members gain access to resources for thorough market analysis and market research, helping you develop a robust marketing strategy.

If you’re a saas startup or a seasoned player, then you can learn how to write a business plan that stands out, keeping a close eye on direct competitors and targeting your ideal customers.

Engage in discussions about business plans, enhancing your customer support team, and navigating the profit and loss statement. Discover marketing automation tips and explore enterprise resource planning to thrive in a competitive market.

Join us now and transform your saas business journey.

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SaaS Business Plan Template

If you have a SaaS startup or want to expand your current SaaS business, you need a traditional business plan. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of SaaS business plans.

The following SaaS business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our SaaS Business Plan Template (including a full, customizable financial model) to your computer here.

SaaS Business Plan Example

I. executive summary, business overview.

[Company Name] is a SaaS business that provides hosting software services throughout [location]. [Company Name] offers customer management, accounting, and project management software at an affordable subscription fee. Moreover, it’ll be responsible for updating and monitoring the provided software. The Company will operate in the heart of the city, conveniently located in the center of the business district.

Products and Services

[Company Name] will provide management, accounting, and project management software. The Company’s custom software is available across various industries including construction, financial services, manufacturing, retail and restaurants.

Customer Focus

[Company Name] will primarily serve small to medium-sized businesses, from new ventures to well-established businesses and individual clients. The clients are further categorized into the following categories:

• Financial service providers
• Construction companies
• Manufacturing businesses
• Restaurants
• Retail Establishments
• Other businesses that may need SaaS technology

Management Team

[Founder Name] has a bachelor’s degree in Technology. He is a certified SOC 2 – Trust (SOC 2 is designed specifically for SaaS operations) and has over [x] years’ experience working as a senior software engineer prior to starting [Company Name].

[Company Name] will also employ an experienced assistant to work as a business analyst and help with various administrative duties around the office.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• The Company has a competent, technically sound team with analytical and critical thinking skills that can help them find creative solutions for clients when they request customized software apps.
• The US has a robust business environment with a large number of businesses going the way of technology, and software as a service (SaaS) is indispensable in the value chain of the infotech industry.

Financial Highlights

[Company Name] is seeking a total funding of $200,000 of debt capital to open its office. Specifically, these funds will be used as follows:

• Office design/build: $40,000
• Software development: $90,000
• Working capital: $70,000 to pay for marketing, salaries, equipment and lease costs until [Company Name] reaches break-even

II. Company Overview

Who is [company name], [company name]’s history.

In the past few years, a number of IT businesses have opened in [location], and many startups have flourished. SaaS solutions are among the fastest-growing segments in the IT industry. In [year], [Founder’s Name] decided to meet this target market need by investing in business providing SaaS solutions to various types of companies and startups.

Since incorporation, the company has achieved the following milestones:

• Developed the company’s name, logo, and placeholder website located at [website]
• Determined the list of services to be offered
• Determined equipment and development requirements

[Company Name]’s Products/Services

The following are the services that [Company Name] will provide:

• Customer Management Software
• Accounting Software
• Project Management Software
• Software Training: Training sessions on how to use the software solutions and integrate them into their businesses

III. Industry Analysis

The SaaS industry is booming. Over the past five years, the SaaS industry has been one of the fastest growing industries in the U.S. In fact, end-user spending on public cloud services will reach $482 billion over the next five years.

Among cloud options, the outlook for SaaS is the brightest. The overall growth of the SaaS industry will remain consistent through these years as more companies adopt SaaS solutions for a variety of business functions, extending far beyond the initial SaaS territories of core engineering and sales applications.

The demand for subscription-based pricing models, however, is spurring legacy companies to rapidly migrate their software solutions to a SaaS consumption model.

IV. Customer Analysis

Customer segmentation.

[Company Name] will primarily serve small to medium-sized businesses, from new ventures to well-established businesses and individual clients. These businesses typically gross from $8 million to $80 million in annual revenues and can invest up to $100,000 to $150,000 in their IT infrastructure. Clients are segmented as follows:

V. Competitive Analysis

Direct & indirect competitors.

Cloud Partners Cloud Partners was founded in 1999. It has been a reliable SaaS company in [location] for more than fifteen years. The company is known for its wide range of services that serves many people. With its large number of experts focused on delivering customer satisfaction, the organization maintains its high standard of services. Cloud Partners provides business software on a subscription basis. It develops enterprise cloud computing solutions with a focus on customer relationship management.

Software Solutions Software Solutions is a cloud computing and hosting platform. The company offers cloud infrastructure services, such as compute, storage and content delivery, database, and networking services, platform services that include analytics, enterprise applications, mobile services, and internet of things, and developer tools, management tools, security, and identity services, and application services. It has also introduced a pay-as-you-go cloud computing model that scales to provide users with computing, storage, etc.

SaaS Partners Inc. SaaS Partners Inc. provides integrated cloud applications and platform services. Its products and services include applications and infrastructure offerings delivered through various IT deployment models, including on-premise deployments, cloud-based deployments, and hybrid deployments. The company serves automotive, financial services, healthcare, hospitality, retail, utilities, construction, etc. It provides solutions for enterprise resource planning, banking, human capital management, etc.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management: [Founder’s Name] has been extremely successful working in the SaaS industry and will be able to use his previous experience to provide the best service experience. His unique qualifications will serve target customers in a much more sophisticated manner than [Company Name’s] competitors.
• Relationships: [Founder’s Name] knows many of the local leaders, business managers, and other influencers within [location]. With his [x] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
• Innovative: The Company will add new data sources to expand on new valuable insights, launch new advanced features like benchmarking, predictive and prescriptive analytics, and self-guided data discovery. Adding embedded analytics creates a new way to innovate continually.
• Client-oriented service: [Company Name] will have full-time customer service representatives and sales team to keep in contact with clients and answer their everyday questions.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the SaaS industry. Clients can expect to receive the best services at competitive prices. The [Company Name] brand will focus on the Company’s unique value proposition:

• Client-focused SaaS services that are customized for every client
• Service built on long-term relationships
• Thorough knowledge of the clients and their varying needs

Customer Acquisition Strategy

[Company Name] will adopt a multi-faceted approach to acquiring customers, including:

• Developing relationships with local businesses through networking events and partnerships
• Utilizing online marketing strategies such as social media advertising and search engine optimization
• Offering special promotions and discounts for new clients
• Providing exceptional customer service to retain and attract potential customers through word-of-mouth recommendations.

By diversifying its business strategy, [Company Name] will be able to reach a wider range of potential clients and establish itself as a reputable SaaS provider in the industry.

The customer acquisition cost for [Company Name] is estimated to be low due to the use of online marketing strategies and word-of-mouth recommendations. This will help improve overall profitability and make the business more sustainable in the long run.

Promotions Strategy

The Company’s marketing strategy to reach the target audience includes:

Advertisement

Advertisements in print are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms and technologies of SaaS industry and post customer reviews that will increase audience awareness and loyalty.

Direct Mail

[Company Name] will blanket businesses with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other enticements for people to use SaaS services.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of Software services. The customer can expect to receive quality software services at a more affordable price than what they pay at an ultra-premium SaaS company.

VII. Operations Plan

Functional roles.

[Company Name] will carry out its operations at its headquarters in [Location]. The business will require the following job functions:

Administrative and Service Functions

• General & administrative functions including marketing, bookkeeping, etc.
• Software development
• Software and customer support

VIII. Management Team

Management team members.

[Founder Name] has a Bachelor of Technology. He is a certified SOC 2 – Trust (SOC 2 is designed specifically for SaaS operations) and has over [x] years’ experience working in the SaaS industry as a senior software engineer before starting [Company Name]. [Company Name] will also employ an experienced assistant to work as a business analyst and help with various administrative duties around the office.

Hiring Plan

[Founder’s Name] will serve as the CEO. He will hire the following personnel to maintain an effective and profitable SaaS business:

• Programmers and Software Developers [Number]
• Account Executive
• Business Development
• Customer Care Executive

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come primarily from software development. The staff will earn competitive salaries allowing [Company Name] to hire experienced workers. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $200,000 of debt capital to open its office. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

Key Assumptions

5 year annual income statement, 5 year annual balance sheet, 5 year annual cash flow statement.

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SaaS Business Plan

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Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Opportunity.

Scope creep. The consulting client uses the approval process to demand more consulting without more payment.

A professional consulting business normally involves a proposal — also called an engagement letter — and acceptance. The accepted proposal becomes the agreement between consultant and client on what’s to be done, when, and for how much money. 

During fulfillment, a reference to the original engagement is a valuable tool for tracking progress and managing ongoing work, and avoiding scope creep. It’s a critical missing link for most consultants. 

Overture compiles proposals incorporating building blocks of content including text, tables, and milestones, component tasks, and date and deadline data, with ongoing progress tracking, tickler functions, communication with clients, and billing for progress. The key differentiator, secret sauce, is easily managed tools and a conceptual framework for ending scope creep.

Prospects include single professionals, small professional firms, and individuals in large firms. Pricing makes the software accessible to different levels, as little as $19.95 a month for the individual account.

Competition

Competing software

There are several good proposal management offerings . 

• Quote Roller

None of them addresses scope creep like Overture. Most are priced well above us, few have the features we have.

The real competition

The real competition is using existing word processing tools combined with project management and billing.

We have a great team including three proven successful startup veterans who are in a position to invest their own funds to cover start-up investment in the middle six figures. All three have strong experience and track records related to software and consulting.

We are value-driven. We believe that we’re doing something that needs doing, will help our users succeed, and will be the best possible way to spend the money they spend.

Expectations

Our priority for the foreseeable future is high growth, not profits. We want to achieve the kind of high valuations that make a good opportunity for us and our investors.

Financial Highlights by Year

Financing Needed

We plan on a capital investment of $2.5 million.

• Our three founders are able to fund $240K of early seed money to build the business enough to secure a round of local angel investment.
• We plan to take in $750K angel investment in the Spring of 2020.
• Series A venture capital in Spring of 2021.

Problem & Solution

Problem worth solving.

Scope creep. If you’re a serious business professional, you know the problem. You propose one thing, for one price. You deliver, and the client wants more … but for the same price.

A professional consulting business normally involves a proposal — also called an engagement letter — and acceptance. The accepted proposal becomes the agreement between consultant and client on what’s to be done, when, and for how much money.  During fulfillment, a reference to the original engagement is a valuable tool for tracking progress and managing ongoing work and avoiding scope creep.

This is a business document that requires a combination of specific and generalized content. For example, most proposals include a section called something like “Background and Qualifications.” That might be standard boilerplate content, but more often it’s a combination of boilerplate and tailored content. For example, a consultant might emphasize primary market research in one proposal and mathematical modeling in another.

This is an opportunity for a software application to combine standard content, customized but repeatable content, and engagement-specific content.

Our Solution

Overture compiles proposals incorporating building blocks of content including text, tables, and milestones, component tasks, and the date and deadline data, with ongoing progress tracking, tickler functions, and communication with clients. 

Target Market

Market size & segments.

Accounting : Firms in this subsector generated $175.4 billion in revenue in 2017 (a 4.4 percent increase from 2015). Firms provided payroll services, financial auditing services, tax preparation services, and other consulting services for individuals and corporate clients. In 2016, the industry was comprised of over 130,000 firms and employed 1.2 million professionals.  Architectural services : This subsector accounted for more than $67.7 billion in revenue in 2017, with a majority of that revenue generated from non-residential construction. This sector includes firms primarily engaged in the planning and design of residential, institutional, leisure, commercial and industrial buildings, and structures. As with engineering firms, many architectural firms are small niche companies that complement the work of larger U.S. firms that have a more global footprint. In 2016, the industry was comprised of 21,600+ firms and employed 170,400 professionals.  Engineering services : This subsector posted $234 billion in revenues in 2017 (a 1.4  percent increase from the prior year). Industrial and manufacturing engineering contributed most significantly to total revenue. Other contributors included commercial and institutional architecture, transportation infrastructure, and power generation and distribution activities. The subsector includes firms primarily engaged in the design, development, and utilization of machines, materials, instruments, structures, processes, and systems.

Engineering services include the preparation of feasibility studies and preliminary and final plans and designs; the provision of technical advice and assistance during the construction or installation phase; and the inspection and evaluation of engineering projects. The industry was comprised of 60,200+ firms and employed over one million professionals in 2016. Legal services : Legal services generated $292 billion in revenue during 2017 (a 1.6 percent increase from the prior year). Firms in this sector provided a variety of legal services including litigation support, general corporate services, plaintiff and defense work for individuals and companies, patent agent services, paralegal services, and process serving services. In 2016, the industry was comprised of more than 185,300 firms and employed nearly 1.1 million professionals. Management consulting : This subsector accounted for $254.5 billion in revenue during 2017 (a 1.2 percent decrease from the prior year). Firms provided consulting services in administrative and general management; human resources; marketing; process, physical distribution, and logistics; environmental; and other scientific and technical services. In 2016, the industry was comprised of nearly 171,100 firms and employed over 1.2 million professionals.

Initial Target Market:

• Company size: From the solo consultant to the 10-100 employee size consulting companies.
• Professional service industries with high client communication needs are a strong initial focus.
• Non-tech savvy user looking to solve a specific problem not deploy a complicated system.

Current Alternatives

Direct Competitors:

• www.Pandadoc.com
• www.conga.com
• Gleanquote.com

Our Advantages

Competitive differentiation: dealing with scope creep. None of these competitors really do. But we do.

Marketing & Sales

Positioning.

Overture is for consultants who want a start-to-finish solution — that manages scope creep — for consulting engagements and client relationships.  We address the pain points of:

• Building proposals combining standard components and specific details.
• Transparent engagement management based on progress, steps, deliverables.
• Scope creep as clients use the approval process to expand the scope.

Decision-maker is not inclined to do a lot of competitive comparisons but may do some searching for some solutions to the specific problem. We’ll be targeting these core keywords:

• Scope creep
• Consulting management
• Client management
• Client relationships

Scope creep should be especially productive because this is what we do that no competing software does well. 

Marketing and Sales Plan

Initial Strategy:

• Focus on lead generation within our website and social media. Test positioning to learn what potential customers respond to. Find 4-6 target verticals to market. Establish 6-10 local companies, inside the target verticals, to pilot.
• Tailored marketing programs to the 4-6 target verticals using social media and website.

• PPC, remarketing, social, Linkedin, etc.
• App/Review networks: AppSumo, G2 Crowd, TopTenReviews, etc.

Content Marketing  

• Goal: Generate leads
• Strategy:  Attract target consultants by transparently sharing the problems and solutions related to managing engagements and particularly scope creep. And of course include related client proposal, management, productivity, and email tips.
• Business productivity and process optimization
• Email tactics
• Email statistics
• Email productivity hacks
• Communication advice/how-to
• Whitepapers/lead-gen downloads
• Traditional prospecting for consultants and consulting firms
• Scrape for content related to scope creep

Secure testimonials or influencers

Self Service Sales 

• Web site and sign-up process
• Engagement marketing during free trial
• Sales calls to free trials depending on lead score

Locations & Facilities

We believe in remote work. Our founders live in the Silicon Valley, Seattle, and Portland. Nobody has to move. We can hire the best of the best, from wherever they live. Two early hires will be living in Slovenia, another in Chile. Our first non-founder marketing hire lives in Austin, TX.

We work with Slack, Skype, Google Docs, email, and phones.

No need for details here; the demo shows it all. We combine some open-source, some licensable tools, and some proprietary components to bring together the best possible combination of managing content and data together in documents, tables, charts, and alerts and reminders.

Milestones & Metrics

Milestones table, key metrics.

• Infrastructure cost
• LTV:CAC (unit economics)
• Upgrade revenue

Ownership & Structure

Nevada C Corp. Initial ownership 1,000 shares 40% Lupe Rocha, 35% Shanna Smith, 25% Matt Kenny.

Located on the web, phones, in slack, and email. We call this remote working. Lupe is in the Silicon Valley in California, Shanna in a suburb of Seattle, and Matt in Portland, OR.

Management Team

We are value-driven . We believe that we’re doing something that needs doing, will help our users succeed, and will be the best possible way to spend the money they spend.

Lupe Rocha, 34

MIT CS and Stanford MBA 10 years experience in 2 software startups including Acme that she led to sale to XYZ at $200M valuation. She was founder and CEO at Acme and took its sales of content management software from zero to $8 million annually.

We have Lupe as interim CEO, meaning she’s CEO but committed to the business, and business success, much more than to a specific title.

Matt Kenny, 52

Decades of successful consulting, early stint with McKinsey, author of a collection of proposal templates, Harvard MBA.

Matt is product lead, which is like an acting Chief Product Office but without the title and with the understanding that he wants to manage the quality, features, and functionality of the product; and that he will be happy to move over and allow room for a CTO in the future.

Shana Smith, 29

Built and successfully sold her social media and marketing software HIJ to ABC. Forbes 30 under 30. Degree in Lit from Northwestern.  Shana will run the marketing for the foreseeable future but — as with Lupe and Matt — she will be ready to work with and for a CMO when growth makes that convenient.

Financial Plan investor-ready personnel plan .">

Key assumptions.

• We leave an unrealistically high projected cash balance in the fourth and fifth year as a buffer. That’s not going to happen. If things were to go that well, we’d be reinvesting in higher growth instead of leaving that much cash.
• We have placeholders for major expenses in the further-out years. We don’t know the details but we do know we can’t have both high growth and high profits, so we choose growth. We cannot be profitable and grow at the rate we want. That’s why we intend to bring in almost $2 million in investment — to finance the deficits.

Revenue by Year

Net Profit (or Loss) by Year

Use of Funds

Use of funds is available in detail in monthly projections in the appendices. It’s essentially financing deficit spending in product development salaries and marketing expenses as we push growth way beyond the levels that revenue alone could support.

Sources of Funds

Sources and funding

• Founders : Founders expect to put in a total of $240K including $200K in the first year and another $40K to get through some thin months during the second year.
• Angel round : A combination of $750K from two regional angel groups.
• Series A VC :  Projected $1.5 million.

Ongoing valuation

By the time we get the angel group funding we plan a valuation of $8 million based on a successful launch, testimonials, funds already raised, traction, and buzz in the market.

For the $1.5 million second angel round we will go for a valuation of $20 million. That will be based on all of the above plus demonstrable traction and pull.

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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