We meet many entrepreneurs who come to us full of excitement. They love their idea, they believe in their product, and they feel ready to launch. Their energy is inspiring, and it is often the fuel behind every great startup.
But passion without analysis can become expensive. In some cases, it can even cost the business altogether. This is one of the most common reasons startups fail, even when they have a strong product and a great idea.
We see this often in our work. One entrepreneur approached us ready to launch a new app. They were confident, prepared, and convinced they knew exactly what the business would cost. In their mind, the only major expense was the cost of developing the app.
At first glance, their assumption made sense. App development can be expensive, and it usually represents one of the biggest upfront investments in a tech startup. But once we began building our business plan, the real financial picture looked very different from what they expected.
The Real Cost of Launching an App
Our business plan is rooted in real data and industry benchmarks. When we started analyzing the app launch, we identified a cost the entrepreneur had not fully considered. Marketing.
Since the app was completely unknown, gaining visibility required a strong marketing strategy. The entrepreneur soon discovered that marketing would not only be necessary, but it would also be more expensive than the cost of developing the app itself.
This happens more often than people realize. Entrepreneurs focus on building the product but underestimate the cost of getting users to actually download it. In the world of tech startups, app marketing costs can easily surpass development expenses.
Why the Startup Stage Lasts Longer Than Expected
Another widespread misconception among new entrepreneurs is the length of the startup stage. Many believe customers will appear quickly once the launch is complete. They envision gaining traction quickly, becoming profitable rapidly, and growing consistently.
But that is rarely the reality.
The period between launching and establishing a consistent customer base usually takes longer than expected. Entrepreneurs tend to:
overestimate how fast customers will come
underestimate how much cash they will need
underestimate how long it will take to become cash flow positive
These financial miscalculations can strain the business early and put it at risk before it has a real chance to scale.
This is precisely why startup financial planning is a crucial component of our business plan. It identifies what the entrepreneur truly needs to operate successfully during the early stages of growth.
What Our Business Plan Reveals
Our business plan does not rely on assumptions. It uses industry data, real costs, and accurate forecasting to reveal the financial truth behind the idea.
For the app client, our analysis uncovered:
the real cost of user acquisition
the need for ongoing marketing
the cash needed to sustain operations before revenue stabilized
the timeline to reach cash flow positivity
Without this clarity, the entrepreneur would have launched with unrealistic expectations and insufficient capital. Their optimism alone would not have protected them from early failure.
Takeoff Matters More Than Most Entrepreneurs Realize
Experts in aviation say that the most critical moments of a flight are takeoff and landing. Both require precision, planning, and full awareness of the conditions.
A business works the same way.
The way you take off shapes everything that comes after.
Launching without understanding real startup costs, app marketing needs, and cash flow requirements can put your business at risk. Launching with the right information creates stability, control, and a far greater chance of long-term success.
Our business plan offers that clarity. It grounds your idea in data, reveals the true financial needs behind your vision, and prepares you for the realities of the market.
Passion starts the business.
But strategy keeps it alive.
Contact us today to get started
The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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