An Ultimate Guide to
Writing a Virtual Reality
Business Plan
 
Over the past few years, we’ve been lucky to observe the rapid growth of VR technology. VR, which has been only a dream two or three decades ago, is now accessible everywhere, and people can’t stop buzzing about it.

The popularity of this technology will continue growing in the upcoming years as well. Statista reports that the collective AR and VR market will be worth a whopping $160 billion by 2023. It means that we will also be seeing rapid growth in the number of VR startups each year, as investors worldwide will be more and more interested in this technology. 

However, fierce competition will be the downside of the growing demand for VR. If you’re planning to launch your own VR startup in the nearest future, you might already feel the weight of this competition pulling you down, so you need something that will help your idea stand out. 

A properly written business plan can be your solution to this problem since it’s the first thing potential investors will be looking at to evaluate the viability of your idea. 

So, today, we’ve prepared a detailed guide on writing a virtual reality business plan with tips and useful ideas to help you out. 
 

1. Start with an Executive Summary

A business plan usually is quite a long document, and, in the case of a VR startup, it will also contain specific terminology. That’s why it makes sense to include a brief overview, or an executive summary, which describes your business, what if offers, and which problems it offers to solve. 

There are several components of an executive summary, which you should include if you want your VR business plan to give a full picture of what you’re offering. 

Let’s break them down one by one. 
 

A) Outline Business Overview

Your business plan should start with an overview of the most important features of your business. This section should tell the story of your business and how you came up with the idea for your product. 
That being said, your company overview should include the following points:
  • A general introduction. Start your overview with a sentence describing what your company does, whom your product serves, and in which industry you operate. Here’s a good example you can follow:
pastedGraphic_1.png

 

  • Company history. Provide some information on what triggered your idea and inspired you to launch your VR business. Here’s an example of a brief company history that intends to promote VR technology in education: 
pastedGraphic_2.png

 

  • Your end goal. Wrap up your business overview section with a couple of sentences about what you want to achieve and where you see your business in the upcoming years. Try to keep it concise to help the investors understand your point:
pastedGraphic_3.png
 
A company summary doesn’t have to give a too detailed overview of what your VR business is offering. But it should provide enough information for the investors to understand what differentiates you from your competitors. 

 

B) Describe Your Product or Service

After a company overview, it is time to provide a bit more information about your product or service and why it is needed. 
Generally, the description of your product in the executive summary of your business plan should answer the following questions:
  • What is your product or service?
  • Who is the target audience for your product or service?
  • Which needs of your target audience does your product or service solve?
  • What differentiates your product from your competitors?
  • What are your product’s pricing and lifecycle? 
  • Have your trademarked your product?
However, if you want to make your product description a bit more detailed, you can include your product’s features and which needs each of them can fulfill. Here’s a good example of such a product description from Surgical Theater, a VR startup that created a Surgical Rehearsal Platform for pre-operative planning:
 
You can also explain why your product or service is cutting-edge and how you expect it to change the VR industry and impact any other related industries over time. 

 

C) Make a Clear Mission Statement

The executive summary of your virtual reality business plan should also include the mission statement, which explains your company’s purpose. 
A mission statement usually answers the following questions:
  • Why does your company exist?
  • Why does your product exist?
  • Whom does your product serve?
  • What is your final goal?
Here’s a good example of a clear mission statement by Virtual Spaces, a VR startup that helps real estate developers visualize architectural drawings using immersive technology:
 
 
In the image above, the highlighted sentence is the company’s mission statement that explains which problems their services are aiming to solve and how. Here, it is also important to mention that a clear mission statement also involves a value proposition. 

During one of our latest webinars at The Glimpse Group, we talked about the reasons why so many VR businesses fail to get their point across, one of them being the lack of proper value proposition. One of the speakers shared her story, telling that she organized multiple events to present her product, but failed every time because there was no clear value proposition. 

While discussing this issue, our CEO Lyron Bentovim emphasized questions every VR company owner can ask themselves to derive a clear and straight-to-the-point value proposition:
  • Why should your project exist?
  • Why should people care?
  • Who is your project for?
  • Which problem will you solve?
A good tip that was also shared regarding value proposition during our webinar is that it shouldn’t be about the VR technology, but more about what this technology will solve. It will help you put your mission statement into perspective and make your business relatable to a larger group of people. 

 

D) Provide a Company Structure

To make your executive summary more informative, make sure you outline the company structure and include contact details for investors. 
Here is the list of contacts that you might consider to add to your executive summary:
  • Founder and CEO
  • CTO
  • CFO
  • marketing executive
Try to provide a bit more details about every person on the contact list, their background, and their experience in the industry. You can also include a few contacts of VR engineers in your team if the investors want to learn more about the technology, your product, and its features. 


E) Include Objectives and Give Financial Projections

Finish your executive summary with a detailed outline of your objectives. A bit earlier, in the company overview, you mentioned the end goal of your business. Now, it is time to elaborate on it a bit more. 

When working on setting the objectives, you can follow the SMART model for goal-setting. Keep your objectives:
  • specific – your objectives should target a specific area of improvement
  • measurable – every objective should be an indicator of progress towards achieving a bigger goal
  • assignable – there should be a competent person in your company to achieve each objective
  • realistic – make sure you have metrics for each objective which you can use to measure your progress
  • time-bound – each objective should have a clear deadline 

Here’s an example of an objective description for our hypothetical VR business case we mentioned in the business overview section:

In this example, you can see that the objective describes a specific area in which a startup is planning to work. The description of the objective mentions how this work will be measured, who will be responsible for the progress, and when the company expects the first results. 

You can also complete this section with the description of your current financial state and by how much you expect it to grow by the time you achieve your goal:

 

 
In the example above, you can see that the description of your financial projections doesn’t have to be long. However, make sure you write it in a confident voice and try not to make it sound too hypothetical. 

Tip:
Imagine that you’re writing this section for a person who has never heard about the VR industry and what it can do. Try to write your business overview in a simple, easy-to-understand language, and keep in mind that your investors may come from different backgrounds and may not know the specifics of the VR industry. However, if you don’t want to exclude terminology, make sure your business plan has a short list of terms after the table of contents. 


2. Include a Detailed Market Analysis

The next big section of your virtual reality business plan is a market analysis that also includes competitor insights. 

This analysis should be comprehensive enough to give an idea of the current state of the market within the VR industry and also show how your business fits into the market dynamics. 

The market analysis usually involves three key steps:
  • General industry overview. Start by outlining the current state of the VR industry and give predictions as to what the future holds for this industry based on current trends, growth metrics, and its general size. 
  • Audience analysis. During the target market analysis, give a detailed description of your target audience, including the demographic and psychographic data, and connect your target audience persona with the current state of the VR industry. 
  • Competitor analysis. This data will give you a more clear idea of where your business and product stand compared to your competitors and will help you determine your unique value. 

When giving the general industry overview in your market analysis, make sure you collect as much general data as possible. This process will take a lot of time because it involves extensive research. However, you can save time and get help with this part from professional writers, who can do the research for you. 

In terms of doing a competitor analysis, try to include as many details as possible. It is also important to present your findings in a way that would help the investors digest the data easier. For instance, you can use the table below to help you organize data from competitor analysis:

 
Apart from the above-mentioned points, also make sure your market analysis includes an overview of other related industries. For instance, if your product is intended for educational purposes, you should also provide an overview of the demand for VR in education. 

 

3. Provide Your Marketing Plan

The next section of your virtual reality business plan should touch upon your marketing and customer acquisition strategies. 

A marketing plan usually involves market analysis and target audience description, but since you already have this information in the previous section, you can focus more on customer acquisition and targeting. 

So, give a point-by-point description of the strategies you will use to attract customers, which tools these strategies will use, and how you are planning to measure them. Also, mention other customer acquisition strategies you can use as substitutes in case the initial ones don’t work. 

After the description of your marketing plan, you should also outline your exit strategy to mitigate failure. Outline how you will dispose of your tangible business assets and who will be responsible for it. 

 

4. Give More Details on Your Financial Outlook

As you have already given general information on the current financial state of your business, it’s time to include more details on your business expenditures. 

In this section, it is important to visualize your data as much as possible. Also, to help the investors better understand where the money will go, try to follow the top-down approach. 

For example, you can start by dividing your entire capital between the biggest areas of expense. These areas can include:
  • marketing and advertising
  • equipment
  • research and development
  • operational expenses
Then, you need to include a detailed balance sheet, which would describe where your entire business capital is coming from. Such sources can include:
  • assets (e.g., different types of VR equipment)
  • liabilities and equity
  • stockholder equity 
After that, finish your financial report by providing an updated income statement. You can break down this statement into several subsections, which would show how much revenue you received from partnerships with your current donors or clients. 

 

5. Finish with an Action Plan

Once you have your executive summary, market analysis, marketing plan, and financial outlook in place, you can wrap up with an action plan, which would give more details on each step you need to take to achieve your goals. 

The action plan usually includes the following components:
  • the description of each goal
  • tasks and steps needed to achieve these goals
  • people who will be in charge
  • deadlines for each goal
  • resources you need to achieve each goal
  • metrics you will use to evaluate the progress

This section is similar to the one from the executive summary, but it gives a more detailed outlook on your goals and objectives from the perspective of a marketing plan and market analysis. 

Thus, when writing this section, reference all the data you provided in the previous parts to let the investors, where your business currently finds itself within the VR industry and where it’s heading towards. 

 

Over to You

The VR industry is growing rapidly, and there’s no doubt that it will be among the dominant ones in the technology market in the upcoming years. 

However, this also means that this industry will become increasingly competitive. And, if you want to withstand this competition, you need a strong business case and a compelling business plan. 

Our goal today was to show you how to write such a business plan for your VR company. Your goal is to emphasize your unique value proposition and support it with evidence, such as market analysis, marketing plan, and a financial outlook. 

Be as precise as possible and focus on the problems that your business is set to solve. Remember, VR technology is just a tool that serves a higher purpose, and this purpose should be the main point of your virtual reality business plan. 

 


 

Daniela McVicker is a blogger with rich experience writing about UX design, content planning and digital marketing. Currently, she is the chief contributor at Essayguard where she helps individuals and organizations improve their web content writing, design, and planning skills. Her posts are always packed with examples and actionable content that readers can put straight into the action.
Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google
Spotify
Consent to display content from Spotify
Sound Cloud
Consent to display content from Sound