Success starts with a plan. Likewise, success in your business starts with a business plan. Below is an outline of the key information you will need to develop your plan/operations guide.
Planning your Business:
1. Outline your proposed products and services – What product or service will your business sell to its customers? What are its benefits and features? How will it be packaged? How much will it cost?
2. Define your market – Who are your customers? Define them by demographics (age, gender etc.), geography (where they live), lifestyles (mom, entrepreneur, executive), and preferences/interests (music, shopping, eating, gaming etc.). Be as specific as possible this will help you when you get to your marketing strategy.
3. Identify your competition – Learn all you can about your direct and indirect competitors. For each include their location, services, pricing (if possible), marketing tactics, strengths and weaknesses. (Direct competitors do the same thing you do. For example if you are a graphic designer another graphic designer would be your direct competitor. Indirect competitors provide a product or service that can be used as a substitute for yours. A company that sells templates that you can download and customize would be an indirect competitor to a graphic designer.)
4. Draft your marketing strategy – How will you reach your customers (described above) to let them know about your business and its products and services? Be specific about the methods you will use, and how frequently you will use them.
5. Outline your operations process – How will you deliver the finished product or service to your customer? What accounting/bookkeeping methods will you use? Draft an outline of the process step by step. Include any employees/contractors involved in the process as well as any equipment needed. Test the process for effectiveness and efficiency and revise it as needed.
6. List facility and technology needs – Where will you work? You need to create a space that is dedicated to your business. List the furniture, equipment and supplies you will need to provide your product or service. Then determine how much space you will need and location options. Can you create a workspace in a corner of your home or spare room? Do you need to rent office space?
7. Determine budget and financing options – Now that you have outlined the main aspects of your business, estimate your start-up expenses and budget. Review sections four (4) through six (6). List the services and items you identified and get costs and/or estimates for each. (Don’t forget to include business license and registration fees in your start-up costs and budget.) Take into consideration any items you already own that you can use in your business. Also, check into items or services you may be able to borrow or barter. Last, consider your financing options for the remaining equipment, services and supplies you need. Savings, credit cards (used wisely), and loans from family and friends are common resources used by many entrepreneurs. Consider alternative financing options (like crowdfunding) as well. What resources do you have access to?
Congratulations! If you have worked through the above steps, you have drafted the “meat” of your business plan. By working on your business plan, you have taken the first step toward success – you have planned for it.