Business Plan Software Market

Market Overview

Business plan software is a specialized tool that helps entrepreneurs, startups, and businesses create, manage, and analyze business plans. These software solutions seek to streamline the business planning process by providing users with templates, tools, and features for creating comprehensive and well-structured plans.

The business plan software market share has grown significantly over the years around the globe. Developed and developing countries are seeing significant increases in emerging startups led by tech-savvy entrepreneurs. The highest demand for business plan software is among new entrepreneurs in developed countries; however, emerging entrepreneurs are becoming more aware of the advantages of software-based business plan software. This is accelerating the growth of the business plan software market. Several consulting firms that provide business planning services use the business plan software available on the market. 

Market Dynamics

Global Business Plan Software Market Drivers:

Growing Entrepreneurship and Startups

The global startup ecosystem has grown significantly in recent years, driven by an innovative culture, increased access to technology, and a favorable environment for entrepreneurial ventures. As a result, entrepreneurs and startup founders frequently use business plan software to communicate their ideas, develop solid plans, and secure investor funding. As of June 2023, there were more than 1,200 unicorn startups worldwide. A unicorn is a startup with a very high valuation. According to the Global Entrepreneurship Monitor (GEM), entrepreneurship rates vary by region, with some economies having higher levels of entrepreneurial activity. Emerging economies, for example, frequently see an increase in entrepreneurial activity as individuals seize opportunities to meet local market demands. Statista reports that as of May 2023, there were 11,651 fintech startups in the Americas. This is the world's highest number of fintech startups, with 9,681 in the EMEA region and 5,061 in the Asia-Pacific region.  Other sources estimate that as of January 12, 2024, there will be over 150 million startups worldwide, with 77,927 in the United States.

Furthermore, the Wadhwani Foundation predicts that 10% of startups will survive and grow by 2023, while 90% will fail within their first few years. Business plan software providers frequently tailor their solutions to meet the unique needs of startups, providing templates and features that meet the expectations of investors and lenders. To increase the likelihood of success, businesses should consider using business plan software. As a result, the growing wave of entrepreneurship and the increasing number of startups worldwide help drive the business plan software market trend. As more individuals and teams embark on entrepreneurial journeys, the demand for these software solutions is expected to grow.

Global Business Plan Software Market Restraints:

Cost Considerations

The cost of acquiring and implementing business plan software can be a significant barrier, especially for smaller businesses, startups, or individual entrepreneurs with limited financial resources. The perceived high cost of specific advanced solutions may discourage potential users from investing in these tools, reducing overall adoption rates. Business plan software can cost between USD 29 per month and USD 349 for a lifetime subscription. Some business plan writing services cost between USD 2,000 and USD 25,000. 

According to Software Advice's survey, cost is one of the most important factors for buyers when choosing business plan software. According to the study, 57% of buyers said cost was the most critical factor in their purchase decision. Market research shows that the pricing models for business plan software vary greatly, with some solutions offering subscription-based plans, one-time purchases, or freemium models. The variety of pricing structures reflects an effort to cater to different user segments with varying budget constraints.

Global Business Plan Software Market Opportunity:

Artificial Intelligence and Predictive Analytics

By incorporating Artificial Intelligence (AI) and predictive analytics into business plan software, there is a remarkable chance to improve the strategic planning process. Artificial intelligence can analyze extensive datasets, extract significant insights, and offer users data-driven recommendations, leading to more informed decision-making and adaptable business planning. As per a report published by Gartner, the utilization of artificial intelligence (AI) technologies is increasing in diverse sectors. According to the report, it is projected that by 2024, three-quarters of organizations will have incorporated artificial intelligence (AI) functionalities into their business applications.

Furthermore, A study conducted by the Aberdeen Group revealed that companies that utilize predictive analytics have a significantly higher likelihood of being in the top 25% for customer engagement, profit margin, and competitive advantage. AI-powered tools can offer precise financial projections in the field of financial planning. According to a study conducted by IBM, 65% of Chief Financial Officers (CFOs) believe that Artificial Intelligence (AI) will have a pivotal role in managing financial processes in the future. Incorporating AI and predictive analytics into business plan software presents a substantial opportunity for providers to offer more advanced, data-driven planning solutions. As businesses become more aware of the importance of predictive insights, incorporating AI into business plan software can give it a competitive edge in the market.

Regional Analysis

Europe Dominates the Global Market

The global business plan software market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Europe is the most significant global business plan software market shareholder and is estimated to grow at a CAGR of 7.5% over the forecast period. The business plan software market in Europe is well-developed, yet it still presents potential for growth. Over the past decade, there has been a significant increase in the number of startups emerging in Europe. European startups secured USD 48 billion in capital in 2023, a decrease from the USD 92 billion raised in 2021 and the USD 76 billion in 2022. The valuation of the European startup ecosystem currently stands at USD 3 trillion, with projections indicating that venture capital investment will surpass USD 100 billion in the current year. Europe's unicorn population has experienced an 88% growth since 2014, reaching the US' 56% growth rate. According to the Process Excellence Network, the industries with the highest interest in investing in business plan software shortly are government, financial services, and healthcare. Additionally, Europe houses a substantial amount of financial and healthcare enterprises, thereby enhancing the expansion of the market.

Over the past few years, the German economy has consistently surpassed the economic performance of other European countries. German companies' ongoing prosperity hinges on their capacity to implement competitive technological advancements at cost levels. German industries have succeeded by utilizing cutting-edge work methodologies, and German companies face continuing pressure to optimize their services. Banking and insurance industries are focusing on their capacity to adhere to regulations and allocating resources towards enhancing customer experience. Companies embrace cutting-edge services, including business plan software, to maintain competitiveness. Therefore, the German market is anticipated to generate profits for the business software industry in the upcoming years, with a favorable CAGR throughout the projected timeframe.

Asia-Pacific is anticipated to exhibit a CAGR of 7.7% over the forecast period. The business plan software market in the Asia-Pacific region presents significant prospects due to its reputation as a hub for small and medium-sized enterprises (SMEs) and emerging economies like China, India, and Japan. Small and medium-sized enterprises (SMEs) have become a thriving and energetic sector of the Asian economy in the past 50 years. They constitute over 96% of the total number of Asian businesses. Hence, Asian economies must establish comprehensive support measures for small and medium enterprises (SMEs) to address the significant 1obstacles they encounter in obtaining affordable financing and developing effective business strategies. Business planning software is crucial for the successful launch of a business. Many small and medium-sized enterprises (SMEs) face financial constraints, making engaging in business planning to address these challenges crucial.

Additionally, China's small and medium-sized enterprises (SMEs) are experiencing a minimum annual growth rate of 10%. China's SME sector in 2022 comprised more than 52 million businesses, witnessing a daily influx of approximately 23,800 newly established enterprises. However, small and medium-sized enterprises (SMEs) in China have faced difficulties in recent years due to a lack of strategic planning. In response to this criticism of declining economic expansion, the Chinese government's 12th Five-Year Plan includes a crucial approach to providing targeted assistance to small and medium-sized enterprises (SMEs). According to the plan, China's small and medium-sized enterprises (SMEs) will experience a consistent increase in their total number over the next five years, with an average annual growth rate of 8%. For this to occur, strategic planning plays a crucial role. As a result, it is anticipated that small and medium-sized enterprises (SMEs) will embrace business planning software shortly.

North America, which includes the United States, Canada, and Mexico, is known for its solid entrepreneurial environment, widespread technological integration, and varied business environment. The startup ecosystem in the United States is particularly dynamic. Based on the Global Entrepreneurship Monitor (GEM) report, the United States has consistently maintained a prominent position among the leading nations in entrepreneurial activity, exhibiting a notable propensity for establishing new businesses. 

Segmental Analysis

The global business plan software market is segmented based on platform, industry, deployment, subscription type, and region.

The market by the platform is further segmented into Mac/iOS, Android, and Windows.

Android generates the most revenue in the market.

Android

The extensive application of Android OS is attributable to its convenience and compatibility with all devices. The OS is developed by Google, which provides regular updates. Google gives a portion of Android for free to hardware manufacturers and phone carriers who want to use Android on their devices. Google only charges manufacturers if they install the Google apps portion of the OS. Android is budget-friendly and can be modified to tighten its security protocols or use obfuscators to prevent malicious attacks. Android benefits where iOS drops in share. In recent years, Google's mobile OS has enjoyed healthy uplifts in India, Indonesia, Ireland, Japan, Malaysia, France, and South Korea. Hence, Asia-Pacific, the Middle East, and South America prefer Android over iOS.

Mac/iOS

The Mac/iOS section of the business plan software platform is designed specifically for users who are part of the Apple ecosystem, which includes Mac computers and iOS devices like iPhones and iPads. The business plan software specifically developed for Mac and iOS provides a smooth and unified user experience for Apple users, capitalizing on the unique characteristics of these platforms. The software is designed to be highly efficient and effective when used on the Mac operating system and iOS interface, ensuring a seamless and visually harmonious experience for the user. This segment caters to businesses and entrepreneurs primarily utilizing Apple devices, guaranteeing compatibility and seamless performance on their Mac desktops and iOS devices.

By industry, the segment can be further bifurcated into Personal and Enterprise.

Enterprise accounts for the largest share of the market.

Enterprise

Enterprise-level business plan software provides sophisticated functionalities, the ability to handle large-scale operations, and collaborative tools specifically designed to address the strategic planning requirements of bigger teams. This segment focuses on meeting the extensive planning requirements of well-established businesses, which involve intricate financial modeling, scenario analysis, and collaboration tools for various stakeholders.

Personal

Business plan software specifically designed for personal use provides intuitive interfaces and essential planning features customized to meet the requirements of individuals. Users can independently generate comprehensive business plans, with guidance throughout expressing their vision, establishing objectives, and outlining strategies. Economical, user-friendly, and appropriate solutions for individuals with minimal planning requirements or financial limitations define this segment.

Based on deployment, the market is fragmented into On-premise and cloud.

Cloud is a significant contributor to the market.

Cloud

Cloud-based solutions offer users the versatility to access the software from any location, using different devices, without requiring local installations. This model typically encompasses pricing based on subscriptions, the ability to scale, and automatic updates overseen by the software provider. Cloud deployment is renowned for its simplicity in implementation, reduced initial expenses, and the capability to adjust resource allocation according to demand. It is especially favored by small and medium-sized enterprises (SMEs) and startups that prioritize easy access, teamwork, and cost-effectiveness. In addition, the cloud model allows for immediate collaboration among geographically dispersed teams and empowers businesses to remain current with the most recent features and security updates.

On-premise

 On-premise solutions provide businesses with complete autonomy over their software, data, and security. Organizations that have specific compliance requirements, security concerns, or a need for extensive customization often prefer this deployment model. On-premise deployment offers comprehensive control but necessitates significant initial investment in hardware and maintenance, with updates requiring manual intervention. It is frequently selected by giant corporations that have specialized IT teams.

Based on subscription type, the market is divided into One-Time, Monthly, and Annual.

Annual subscription is the most popular subscription type in the market.

Annual

The annual subscription is the most popular choice for business plan software. Annual subscriptions provide users with the advantage of uninterrupted software access while lowering the total subscription cost compared to monthly payments, striking a balance between cost savings and commitment. This subscription option is well-suited for businesses and individuals with continuous planning requirements and looking for a more cost-effective alternative to monthly pricing. It is a popular option for organizations that can commit more to the software.

One-Time

This model is commonly linked to perpetual licenses, whereby users possess the software version that was current at the moment of acquisition. Although this subscription option may entail a more significant upfront expense, users may be exempt from paying recurring subscription charges. It caters to individuals who favor a single upfront payment and intend to utilize the software for an extended duration without requiring frequent updates.

Impact of covid-19

COVID-19 pandemic has left a draining impact not only on the SMEs but also the large enterprises across the globe. Additionally, the untimely nature of the pandemic has led to a level of distress where the business leaders have developed a mindset of welcoming such events. To attain materialization of such a mindset and be further ready for any such untimely natural events, businesses are navigating a broad range of solutions such as the 'Business Plan Software' that would help them attain economic insights, financial strengths and weakness, re-orienting operations, and plan operating functions accordingly. Thus, the business plan software market, in such testing times, is projected to gain significant traction as it results to be an ideal solution.

Recent Developments

• January 2024- Casper Labs will collaborate with IBM Consulting to develop a blockchain-powered solution to improve transparency and auditability for generative AI systems.
• August 2023- Microsoft joined with the Aptos blockchain to integrate AI with web3.
• December 2023- AWS launched its second infrastructure region in Canada, the AWS Canada West (Calgary) Region, giving customers more options to execute workloads with even greater resilience and availability, securely store data in Canada, and serve end users with even lower latency.
• January 2024- Cisco and the OECD launched a groundbreaking research initiative on digital well-being. This alliance strives to promote responsible technology use, fairness, inclusion, and equitable access in a global digital economy.