Creating A Business Plan



Discover Why It's An Essential Ingredient To Your Success

Creating a business plan is one of the very first steps you need to take when starting your own business.

Yes, even if you're only planning a small, online business! I say this with "tongue in cheek" as people sometimes think that running a business from home is different to running a business in the conventional sense. Wrong! The scope and size may differ but the same business principles apply.

Creating a business plan that is detailed and well structured can mean the difference between success and failure.

creating-a-business-planCreating A Business Plan

I'm sure you've heard the saying: He who fails to plan is planning to fail. Well, unfortunately, many businesses (on-line or otherwise) do fail. The reason for their failure is due to lack of planning and insufficient research before they actually start.

Step #1:

Before you can even consider creating a business plan, spend some time thinking about what I call "the three Cs": Concept, Customer and Capital (Cash).

Concept

  • What business would you like to start?
  • Why is it the right business for your to be in?
  • What would you like your business to be known for?
  • What are you going to sell?
  • Why will people buy from you?
  • Who are your competitiors
  • Why will your customers buy from you?
  • How are you going to differentiate yourself from your competitors?

Customer

  • Who are going to be your customers?
  • What benefits are you going to provide them?
  • How many customers do you need?
  • What are their buying patterns?
  • What do they currently buy?
  • How will they know about you?

Capital (Cash)

  • How much cash do you need to start your business?
  • How much working capital will you need?
  • Do you have an operating budget?
  • How will you maintain your cashflow?
  • How will you contol your finances?
  • How much do you intend to grow?

Step #2:

Now that you have your business concept, you understand who your customer is and you know how much money you need, look at what you have to offer in the way of skills. Look at your strengths. What are you particularly good at? Are there skills that you need to develop?

Step #3:

If you're considering going into business with someone else then consider their strenghts as well. Make sure that they have skills that complement yours. This could potentially save you lots of money as you won't have to hire additional people to bridge the gaps.

Step #4:

The next step in the process is to set some goals. And only once you have set your goals can you think of developing your business plan.

In this section of the website you'll find articles that relate to creating a business plan.