Don’t Write a Business Plan from an Out-Dated Model
Creating your business plan is one of the most EXCITING aspects of creating, growing and running your business. Yeah, right. We both know that’s not true. Unfortunately, what’s “unexciting” on the outside fools you into thinking it’s something that’s not worthwhile. That can’t be farther from the truth.
For generations, this classic document was a necessity when starting your company. What you should know is that over the years the standard format was designed for you to create a plan that’s ready to present to a bank when applying for financing. The financial institutions want the details to determine whether to approve your application.
Even if a business loan is something you don’t need, you SHOULD still get the details down on paper – do not let your plan live in your head. While your plan will evolve and expand, it will keep you grounded and on track. So, what should your plan look like?
Here Are the Critical Business Plan Sections.
Purpose
Describe why you started this business. Not just why are you in business for yourself, but why this particular industry? Go deep into your personal mission. Include your core values. Tell your prospects what you stand for. This anchors you and helps you make decisions for years to come.
Branding
What will you name your company? What thoughts and images come to mind for your prospect when they see your logo, your colors, your name, your tag line? What does your business stand for? What visual branding will entice the audience to learn about you?
Vision
What will evolve and unfold in your company in 1, 3, 10 years? Will you grow or stay the same or perhaps sell? Who is working with you years from now? What are you offering and where will you be located?
Unique Value Proposition
How will your prospects be attracted to you? What is it about you or your offers or your methods that will make you stand out as the clear choice? What is it about your business that shines above the rest? Be intentional and detailed about this.
Target Audience
Describe the people you are attracting. Not a pretend avatar, but real people. Everyone says to “niche down” but you need to it in a way that makes sense to you, not because some business guru told you so. A target doesn’t have to be limited by geography or culture or income. Go deep into behaviors, goals, personality types.
Services and Products
What will you offer? How often? Who’s giving the service or making the product – is it all you or will you train staff? Have you studied the specific need for your product/service by your target audience? What problem is it solving? What transformation will it deliver? Is it transactional or over a long relationship? Are people needing and asking for it or do you think they should want it? Do you have proof of concept?
Equipment/Materials
Does your company rely on supplies and machines or tools? Even if you own a simple house cleaning service, you have to buy a mop, cleaners and vacuum. Will you run it from home or need office space? At the very least, buy a new computer and get the highest speed internet you can afford.
Team/Staff
Who is working with you? You may start out solo but you’ll reach a tipping point where it’s no longer feasible or wise to go it alone. Doing everything yourself may give you a sense of control but you’re actually placing limitations on what you can provide for your clients. Plan ahead who you need in the back office and who will be customer facing. Will you outsource? Find a freelancer? Sub-contractor? Employee? Involve the family? Get a partner? Who will train each person?
Professional Resources
Every successful business has a Support Team. Every company needs to have a relationship with a business attorney, insurance professional, accountant, bookkeeper, and business coach. Further down the line, add an HR Consultant, a Payroll service. Count on the experts to keep your company on track.
Strategic Partners
What other professionals can refer business while not competing with you? What other people who do what you do – but not for the same people – can you partner with?
Marketing
What channels are most appropriate for your target audience? Will you be working with a marketing firm or hiring a freelancer? Make decisions about professional organizations and networking groups to pay for and conferences to attend. Will you be speaking and presenting on your expertise? Will you pay for advertising?
Risk Management Plan
What are all the things that could go wrong? How likely is it each will happen? What is in your power to do ahead of time to mitigate the risks of it ever coming to pass?
The Numbers
What kind of lifestyle will this business enable you to have? How much gross revenue do you need per year to build/sustain that lifestyle? What expenses do you plan for to determine the net income? How many new clients per year do you need to meet that net income? How many prospects do you need to talk to, to get you to the base number of clients per year?
That last bit is not my favorite part. But the more prepared you are, the more your dreams become reality. Is this a lot? Yes! All of it is important to review throughout the life of your business.
How Can I Help You?
If you need help and are reaching decision exhaustion and entrepreneurial loneliness, it may be time for you to enter a supportive group environment. The Step By Step Business Development Club provides you with access to my proprietary business building materials, my years of experience as a business strategist, and support from fellow entrepreneurs who experience what you do and are ready to help each other on a steady path of growth. Running all aspects of a business alone is madness. Even when you have a team working with your clients, the buck stops with you and it’s lonely at the top. A peer advisory board has helped millions of business owners. Here’s how you can benefit as well.