A Business Plan doesn’t have to be 10 pages long!
Although banks and lenders will request a formal business plan, try using this.
When you’re starting out, just keep it simple!
If you’re thinking about going into business for yourself, the thought alone can be haunting at times. Especially when you think about the success rate.
Often enough, people become overwhelmed when they are asked to create a business plan. Usually it’s because traditional business plans can be quite long and intimidating.
If your true goal is to create a PLAN for your Business, than do just that.
The purpose of this post was to enable you to create a plan that works for you and GETS THE BALL ROLLING, rather than bringing you to a halt.
With that said, let’s begin.
(You’ll notice, the business plan is nothing more than a bunch of Q & A.)
First things, first……
List what type of business it will be.
For Example, Barbershop, Restaurant, Consulting Firm, Ecommerce Store, Clothing Boutique, etc.
Choose a business name.
Create a logo. These days, It’s too cheap, not to do this first.
There’s websites such as Fiverr that charge as low as $5 to create one.
Even though you can easily skip this step and move on, it’s important that you create your logo immediately.
Once you have created a personalized logo for your business, it will magically bring your business to life.
In the beginning stages of building a business, you’ll need as much motivation as you can get. This method will help the process tremendously.
Define what your product or service is.
- For example, A bakery that specializes in donuts.
Determine what will it cost you to provide that product or service.
- For example, 1 dozen donuts cost $2.50 for you to make.
Figure out how much you will charge for your product or service.
- For example, 1 dozen donuts cost $10. (Retail Price)
- Once this is figured out, highlight your profit margins.
Who will be your target customer?
- Young Adults
What will you use to promote your business and acquire a customer?
- Social Media
- Direct Mail
- Word of mouth
- Pay Per Click Ads
- Radio Ads
- Television Ads
Scout for different locations that will serve your business best.
Determine who will be considered your competition.
What will make you stand out from your competition, or in order words, why should customer choose you?
What will be your monthly expenses?
- Office/Storefront Rent _____________
- Utilities _______________
- Inventory _____________
- Supplies ______________
- Employees ______________
- Advertisements ____________
Assuming you’re selling donuts, how many donuts will you have to sell each month to break even after paying your monthly bills?
How many donuts will you have to sell each month to make a 50% return on your investment?
How many donuts will you have to sell each month to make a 100% return on your investment?
What will be the equipment necessary to properly run the business?
- List the equipment and its cost.
How much capital will you need to cover your monthly expenses and equipment cost for 3 months of business?
How much capital will you need to cover your monthly expenses and equipment cost for 6 months of business?
How much capital will you need to cover your monthly expenses and equipment cost for 12 months of business?
How much capital do you have right now?
- Include both cash and credit.
How many employees will you need to hire?
- List their positions?
How can you scale the business?
You plan on growing your business, right?
Well, don’t just wing it! Plan for it.
What exactly will have to happen in order for it to grow larger and what can you do to make that process happen quicker?
What is your exit plan?
Those who don’t plan their way out of a business, don’t ever escape their business.
Leaving your business, doesn’t have to be a bad thing.
It’s simply a plan for you to be able to successfully walk away from the business without the business going up in flames.
You can choose to slowly back out from the businesses daily/weekly activities and eventually do it only on a part time basis. Or you can build up your business to the point where someone else is willing to buy you out for a substantial amount of money.
Either way, create a plan and stick to it.
Once you have successfully answered all of these questions, you should be ready to transfer them to a formal business plan or simply work right from this one.
There are several resources available to generate formal business plans.
Below are a few links to different websites that offer FREE Traditional Business Plan templates: