Volume I - Edition II
Developing Your Business Plan
Writing a business, marketing or web plan is tough work. It is hard to know where to begin and some times when to end. Here are a few suggestions to help get you started.
The success of any plan is based the quality of the research and information gathered in the beginning. How much revenue is expected, what are typical profit margins, what are my start-up cost. The marketing plan that promotes the sales, the overall operation and infrastructure needed to meet the needs of doing business. The web plan helps to control cost and define what type of web presence you want to create.
Take your time and network with as many business people as possible for information. Discuss your plans with potential clients to get their view of what you have in mind. Doing your research up front will save you many hours later in the game. It increases your chances of succeeding by reducing the unknown variables.
Six Common Steps In All Business Planning
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Know your product or service. And insure that you have clearly defined what your business is all about.
- Specialty area (e.g., photography, auto mechanic, nanny etc.)
- Know the demographics you are targeting (e.g., teens, over 50 etc.)
- Who else cares about this product or service that could be networking partners or an audience for you? Build this list to include no less than ten potential secondary markets.
- High School Kids, Auto Part Stores, New Mothers, etc.
- Reality Offices, Inspectors, Auto Sales
- Working Mothers
- How will you bring your product or service to the market place, using the networking list created above? This step is critical in all three plans, as it impacts cost. Will you use a web site, will you rely on conventional advertising (papers, radio, fliers etc.), or will you reach them through speaking engagements or community activities.
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The auto mechanic could give a free oil change, or get your car ready for winter, summer workshop.
- The photographer could speak at the local camera club, or act as a judge for the county fair.
- Your web site can offer articles or advice columns.
- How are you planning to maintain this network? Send them information on a regular basis, set up meetings, or less formal luncheons, or formal gatherings? For a web site this means you must update your information on a regular basis. Build relationships, with your clientele and get to know them!
- Make your business legal. There are many ways to form your business. It could be
a sole proprietorship, a partnership, or a corporation. Incorporating can be
expensive; it is well worth the money. A corporation becomes a separate entity
that is legally responsible for the business. If something goes wrong, you
cannot be held personally liable.
You also need to get the proper business licenses and permits. Depending upon the business, there may be city, county, or state regulations as well as permits and licenses to deal with. This is also the time to check into any insurance you may need for the business. - Understand your funding. Depending on the size of your business, you may need to seek funding from an "angel" or from a venture capital firm. Most small businesses begin with private financing from credit cards, personal loans, help from the family, etc. As a rule of thumb, besides your start-up costs, you should also have at least three months' of your personal budget in the bank.
Create a mission statement and use this as a guide in all your business decisions. This will keep you focused on your primary objectives and keep you from getting sucked into non-productive areas.
A written plan can help you coordinate these and the many other elements that go
into each of the plans you create. It's true, many business, marketing campaigns
and web sites get launched each day without a plan, but most will fail.
This month's tip:
We tend to base our judgment of great customer service on how we are treated. Very rarely do I hear - "Everything was delivered on time" or "They fixed or replaced the product without question." We tend take these responses as a given. It's the Human Capital responses that influence us in terms of whether we'll use the service again or even recommend it to others.
When dealing with customers, it's important to open the conversation on a conversational level before doing the business; then say something during the interaction that is not about the business at hand. Then, when the business is complete, close the conversation on a conversational level. This is even more important when dealing with a customer who is upset.
So there you have it; we all have a massive need for acknowledgement, when dealing in business keep this in mind and see if your profits reward you for it.
Quote of the Month:
"Success is like anything worthwhile. It has a price. You have to pay the price to win and you have to pay the price to get to the point where success is possible. Most important, you must pay the price to stay there." --Vince Lombardi