Technology Business Plan Template [Updated 2024]

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Technology Business Plan Template

If you want to start a technology business or expand your current technology business, you need a business plan.

The following Technology business plan template gives you the key elements to include in a winning Technology business plan.

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

Technology Business Plan Sample

I. Executive Summary

Business Overview

[Company Name], located in [Location] is a new technology company that focuses on developing and commercializing new artificial intelligence (AI) technology applications designed for small-to-medium sized businesses. The company has created proprietary technology that helps businesses improve their profitability by using AI to increase customer engagement. [Company Name] aims to be the next big technology company in the AI space.

Products Served

[Company Name] will showcase a variety of different applications for its AI technology that companies can start using to see an increase in customer engagement from day one. Businesses will be able to choose the platform package that works for them, based on a freemium subscription pricing structure.

Customer Focus

[Company Name] will initially serve businesses within a 30-mile radius of [Location]. The demographics of these customers are as follows:

  • 1,500 businesses
  • Under 100 employees (average is 42)
  • Privately held companies
  • Top represented sector: retail stores
  • Average annual payroll for firms with 20-99 employees of $1.3M

Of the above mentioned businesses, many are startups or looking to expand their reach, thus would benefit from technology that can increase their customer base.
[Founder Name] has a bachelor’s degree in technology. She is certified in artificial intelligence and machine learning. [Founder] has over [x] years of 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.

Management Team

[Founder Name] has a bachelor’s degree in technology. She is certified in artificial intelligence and machine learning. [Founder] has over [x] years of 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.

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

Success Factors

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

  • The company will be providing a valuable solution to businesses seeking a way to increase their customer engagement through innovative AI technology.
  • [Company Name] will fill a specific market niche in the growing community of [Location]. In addition, [Founder] has surveyed local businesses and received extremely positive feedback saying that they explicitly want to make use of [Company Name]’s AI solution when launched.
  • The location is in an economically vibrant area where new businesses are starting at a fast rate.
  • The local area is currently underserved and has few technology companies offering specific solutions to increase customer engagement.

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

Top line projections over the next five years are as follows:

Financial SummaryFY 1FY 2FY 3FY 4FY 5
Revenue$560,401 $782,152 $1,069,331 $1,379,434 $1,699,644
Total Expenses$328,233 $391,429 $552,149 $696,577 $776,687
EBITDA$232,168 $390,722 $517,182 $682,858 $922,956
Depreciation$7,000 $7,000 $7,000 $7,000 $7,000
EBIT$225,168 $383,722 $510,182 $675,858 $915,956
Interest$6,016 $5,264 $4,512 $3,760 $3,008
Pre Tax Income$219,152 $378,458 $505,670 $672,098 $912,948
Income Tax Expense$76,703 $132,460 $176,985 $235,234 $319,532
Net Income$142,449 $245,998 $328,686 $436,864 $593,416
Net Profit Margin25%31%31%32%35%

 

II. Company Overview

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

Who is [Company Name]?

[Company Name], located in [Location], is a newly established technology company that focuses on developing and commercializing new artificial intelligence (AI) technology applications designed for small-to-medium sized businesses. The company has created proprietary technology that helps businesses improve their profitability by using AI to increase customer engagement. [Company Name] aims to be the next big technology company in the AI space for business use.

[Company Name] was founded by [Founder’s Name], a seasoned software engineer with a bachelor’s degree in technology. She is certified in artificial intelligence and machine learning. [Founder] has over [x] years of experience working as a senior software engineer prior to starting [Company Name].

[Founder] began researching what it would take to create her own technology company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop her business plan in order to approach investors.

[Company Name]’s History

Once her market analysis was complete, [Founder’s Name] began surveying the local vacant office space and located an ideal location to house the technology company. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].

Since incorporation, the company has achieved the following milestones:

  • Located available office space for rent that is in a busy commercial district
  • Developed the company’s name, logo, and website located at [website]
  • Determined equipment and necessary supplies
  • Began recruiting key employees

[Company Name]’s Products/Services

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

  • AI Hardware
  • Marketing AI Software
  • Customer Relationship Management AI Software
  • Customer Support AI Software
  • Technology Training: Training sessions on how to use the AI solutions and integrate them into their businesses

III. Industry Analysis

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

The global technology industry is valued at approximately $5.2T. Of all countries worldwide, the United States currently has the largest technology market, with 32% of the market share at $1.7T. The technology industry in the U.S. accounts for a large part of the nation’s economy.
The Information Technology market can be segmented by categories such as software, devices and infrastructure IT and business services, emerging technology, and telecom services. In the United States, IT and business services hold the greatest market share (30%), followed by software (20%) and telecom services (20%).

Market drivers include the economy, employment rates, and the digital transformation of daily life for a growing number of people and businesses worldwide. Corporations and organizations are seeking IT service providers that can help improve their software, cybersecurity, data, and infrastructure. Technology companies that can provide products and services that cater to these issues can be competitive in the constantly evolving market.

IV. Customer Analysis

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

Demographic Profile of Target Market

[Company Name] will serve the small and medium sized businesses of [Location] and surrounding areas.

Many small businesses in the community are startups or established enterprises looking to expand their reach, thus would benefit from technology that can increase their customer engagement.

Customer Segmentation

The Company will primarily target the following three customer segments:

  1. Startups: Businesses who have been in operation for two years or less often need help acquiring new customers and thus make an excellent target market for [Company Name]’s AI solution.
  2. Small businesses: The area has a lot of small businesses with less than 100 employees. Many of these businesses are looking for ways to increase their customer engagement through new technology applications.
  3. Medium sized businesses: The Company will also target medium-sized businesses (up to 500 employees) looking to improve their customer acquisition and retention through technology.

V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
The following businesses are located within a 30-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Direct & Indirect Competitors

Tekuserv
Tekuserv has been a reliable technology company in [Location] for more than fifteen years. The company is known for its wide range of technology solutions that serves many small-to-medium sized businesses. With its large number of experts focused on delivering customer satisfaction, the organization maintains its high standard of developing quality products and providing exceptional customer service. Tekuserv provides business software on a freemium subscription basis. It develops enterprise technology solutions with a focus on customer relationship management.

Prime IA Business Solutions
Prime AI Business Solutions is a technology development company in [Location]. In business for several years, the company has developed highly rated AI solutions used by many well-known businesses in a variety of industries. Prime AI Business Solutions now offers a range of AI hardware and software products geared towards helping businesses of all sizes increase their customer base. The company has also introduced a “pay-as-you-grow” pricing model that scales to provide users with more support as they scale up.

AICE Developments
AICE stands for Artificial Intelligence for Customer Engagement. AICE Developments is also a local technology company that manufactures and distributes a variety of technology products. AICE Developments was established in 2009 at [Location], providing integrated AI applications and platform services. Its products 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 AI solutions for enterprise marketing and customer engagement.

Competitive Advantage

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

  • Management: [Founder’s Name] has been extremely successful working in the technology industry and will be able to use her previous experience to provide the best service experience. Her unique qualifications will serve 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 her [x] years of experience and good relationships with business leaders in the area, she will be able to develop an initial client base.
  • Proprietary technology: The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.
  • Client-oriented service: [Company Name] will have full-time customer service and sales managers to keep in contact with clients and answer their everyday questions.

VI. Marketing Plan

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

[Company Name] seeks to position itself as a high-quality source of AI solutions for practical business applications. Clients can expect to receive the best technology on the market from skilled developers in [Location] and customized customer support, training, and troubleshooting services.

The [Company Name] Brand

The [Company Name] Brand

The [Company Name] brand will focus on the company’s unique value proposition:

  • Service built on long-term relationships
  • Big-firm expertise in a small-firm environment
  • Thorough knowledge of the clients and their varying needs
  • Proprietary technology developed by skilled software engineers

Promotions Strategy

[Company Name] expects its initial target market to be businesses within a 30-mile radius of its location. [The Company]’s promotion strategy to reach these individuals includes:

Targeted Cold Calls
[Company name] will initially invest significant time and energy into contacting potential clients via telephone. In order to improve the effectiveness of this phase of the marketing strategy, a highly-focused call list will be used, targeting startups and small businesses. As this is a very time-consuming process, it will primarily be used during the startup phase to build an initial client base.

Referrals
[Company name] understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.
Additionally, [Company Name] will aggressively network with business incubators, small business development centers, small business accountants, and others in a position to work with small businesses and startups. This network will generate referral leads.

Social Media
[Company Name] will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Publications
The company will place print advertisements in key local publications, including newspapers, area magazines, and business newsletters. Additionally, [Company Name] will print brochures and place them in specific locations frequented by target individuals, such as small business development centers.

Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all of the features and benefits of the technology company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

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 incentives for companies to use the AI platform.

Pricing Strategy

[Company Name]’s pricing will be on par with competitors so clients feel they receive great value when purchasing the technology.

VII. Operations Plan

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

Functional Roles

[Company Name] will carry out its day-to-day operations primarily on an appointment basis. Clients will make appointments for product demonstrations, interview sessions to gather information for proposals, and further meetings throughout client engagements. These will often occur at the company office location to remove clients from the distractions of their business. In-process meetings may occur on-site at the client’s business in order to increase the strength of the client relationship. If necessary, appointments can be conducted over the telephone.

[Founder’s Name] will work on an as-needed basis, but can be expected to be present in the office during normal business hours. The company will also employ an assistant/analyst who will staff the office during normal business hours and support marketing and client relationship development efforts.

Administrative and Service Functions

  • General and administrative functions including marketing, bookkeeping, etc.
  • Technology and AI software development
    Software and customer support</3>

    Milestones

    The following are a series of steps that lead to the company’s vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

    DateMilestone
    [Date 1]Finalize lease agreement
    [Date 2]Design and build out [Company Name]
    [Date 3]Hire and train initial staff
    [Date 4]Kickoff of promotional campaign
    [Date 5]Launch [Company Name]
    [Date 6]Reach break-even

    VIII. Management Team

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

    Management Team Members

    Management Team Members

    [Founder Name] has a bachelor’s degree in technology. She is certified in artificial intelligence and machine learning. [Founder] has over [x] years of 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.

    Hiring Plan

    [Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, she needs to hire the following personnel:

    • Software engineer: 1 full-time employee to manage the software development process operations and assist [Founder] with managerial duties.
    • Brand manager: 1 full-time employee who will be responsible for managing all marketing and advertising initiatives, maintaining the company website, and updating social media accounts regularly.
    • Office staff: 3-4 employees who will manage the phone calls, scheduling, accounting, marketing, clerical, bookkeeping, billing, and any administrative task required.

    IX. Financial Plan

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

    Revenue and Cost Drivers

    [Company Name]’s revenues will come primarily from its technology solution subscription sales. The company will use a freemium subscription model, in which basic functions can be used by any company for free. Additional solutions and support will be available in a tiered package model based on the enterprises’ size and number of users.

    The office lease, equipment, supplies, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:

    • Salaries
    • Technology development supplies and equipment
    • Business Insurance
    • Lease on business location and utilities
    • Taxes

    Ongoing marketing expenditures are also notable cost drivers for [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.

    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

    Key Assumptions

    The following table reflects the key revenue and cost assumptions made in the financial model:

    Number of clients
    Year 142
    Year 263
    Year 396
    Year 4162
    Year 5243
    Annual rent$36,000

    5 Year Annual Income Statement

    Year 1Year 2Year 3Year 4Year 5
    Revenues
    Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
    Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
    Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
    Expenses & Costs
    Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
    Lease$60,000 $61,500 $63,038 $64,613 $66,229
    Marketing$20,000 $25,000 $25,000 $25,000 $25,000
    Salaries$133,890 $204,030 $224,943 $236,190 $248,000
    Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
    Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
    EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
    Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
    EBIT($56,810)$105,925 $140,152 $184,317 $234,414
    Interest$23,621 $20,668 $17,716 $14,763 $11,810
    PRETAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
    Net Operating Loss($80,431)($80,431)$0$0$0
    Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
    NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
    Net Profit Margin (%)-15.00%13.00%16.30%19.40%

    5 Year Annual Balance Sheet

    Year 1Year 2Year 3Year 4Year 5
    ASSETS
    Cash$16,710 $90,188 $158,957 $258,570 $392,389
    Accounts receivable$0$0$0$0$0
    Inventory$21,000 $23,153 $25,526 $28,142 $31,027
    Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
    Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
    Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
    Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
    TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
    LIABILITIES & EQUITY
    Debt$317,971 $272,546 $227,122 $181,698 $136,273
    Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
    Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
    Share Capital$0$0$0$0$0
    Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
    Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
    TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

    5 Year Annual Cash Flow Statement

    Year 1Year 2Year 3Year 4Year 5
    CASH FLOW FROM OPERATIONS
    Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
    Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
    Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
    Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
    CASH FLOW FROM INVESTMENTS
    Investment($246,450)$0$0$0$0
    Net Cash Flow from Investments($246,450)$0$0$0$0
    CASH FLOW FROM FINANCING
    Cash from equity$0$0$0$0$0
    Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
    Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
    SUMMARY
    Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
    Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
    Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

     

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