Setting up an innovation start-up

Create a business plan for innovation start-up


A novel idea is the starting point of every innovative business. An innovation business plan will help you to:

  • validate the feasibility of that idea
  • evaluate the market potential
  • verify that there is a real demand for your product

It can also help provide your innovation start-up with credibility and focus, which is vital if you want to attract investors for your innovation start-up.

Innovative business plan - key elements

Your business plan for innovation should show:

  • how you will develop and exploit your invention
  • the capability and experience of your team
  • how you will finance costs
  • how investors will be able to realise their profits

Other key questions that your innovative business plan should answer include:

  • What is unique about the innovation and is it protected?
  • Who will buy it and why?
  • What will it cost to deliver and how much will it sell for?
  • What is the competition, and how do you propose to tackle this?
  • When will the business start receiving income and when will it break even?

For more information on finance and funding, see funding for innovation start-ups and exit strategies for innovation start-ups.

How to structure a business plan for innovation?

A sample business plan structure for innovation start-ups may involve:

  • executive summary
  • description of a business idea or your business statement
  • product or service description, including how you will exploit any new technology or IP
  • market analysis, including trends, needs and growth projections
  • competitor analysis - looking at their strength and weaknesses, and opportunities
  • marketing plan and strategies
  • management and operations, including your business' legal and organisational structure
  • financial planning and resource requirements
  • risk management, covering business, technology or financial risks

Detailed guidance is available on how to prepare a business plan and tailor your business plan to secure funding.