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How to Create a Business Plan That Actually Works
How to Create a Business Plan That Actually Works
How to Create a Business Plan That Actually Works!!!
Creating a business plan is often viewed as a daunting task, but it doesn’t have to be. A well-crafted business plan serves as a roadmap for your business, guiding you through each phase of your journey. At The Success Gameplan, we believe that a successful business plan is clear, actionable, and tailored to your unique goals. Here’s a step-by-step guide to help you create a business plan that actually works.
1. Define Your Mission and Goals
Vision Statement: Your vision statement should describe where you see your business in the future. It’s an aspirational statement that serves as your guiding star. This is not the time for being realistic. Aim high and plan for success!
Mission Statement: Your mission statement outlines your business's purpose and what it aims to achieve. It should be concise and reflect your core values.
2. Conduct a SWOT Analysis
Strengths: Identify your business’s internal strengths. What do you do well? What unique resources do you have?
Weaknesses: Recognize areas where your business could improve. Being honest about your weaknesses is crucial for growth. Without weaknesses there could be no strengths. If labeling areas as weaknesses feels uncomfortable or like you admitting to defeat, view your weaknesses as areas that are your least powerful strengths.
Opportunities: Look for external opportunities your business can capitalize on. This could include market trends, new technologies, or changes in consumer behavior.
Threats: Identify external threats that could impact your business. This could be competition, economic shifts, or regulatory changes.
3. Define Your Target Market
Understanding your target market is essential for a successful business plan. Identify who your ideal customers are based on demographics, psychographics, and behavior. Ask yourself:
Who needs my product or service?
What problems does my product or service solve for them?
Where do they spend their time?
How are they motivated to act? Do they make impulse purchasing decisions? Do they price shop for lowest price? Are their decisions based on personal interaction?
4. Set SMART Goals
SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of saying, “Increase sales,” a SMART goal would be, “Increase sales by 20% over the next six months by expanding our online marketing efforts with a 5% increase in our online marketing budget.”
5. Develop Your Marketing Strategy
Your marketing strategy should outline how you plan to attract and retain customers. Consider the following elements:
Value Proposition: What makes your product or service unique? Why would a client choose your product or service over a competitor's product or service? This can also be defined as your market dominating position or MDP. By establishing a clear MDP, you eliminate the confusion of trying to be everything to everyone. An example is Domino's Pizza. Their MDP is "Fresh hot pizza delivered in 30-minutes or less, or it's free". The message is clear, concise and sets Domino's apart from the crowded industry of pizza delivery. They do not aim to provide the best pizza, the best dining experience or the even the lowest price, but they establish their MDP by guaranteeing that the pizza will be delivered fresh and hot within 30 minutes of ordering, which sets them apart from the competition and makes their product the logical choice for potential customers wanting their pizza as quickly as possible.
Marketing Channels: Where will you market your product or service (social media, email, SEO, etc.)? An example of this is a local florist that has the ability to deliver flowers within a 20-mile radius of their shop. It does not make sense to advertise outside of the florist's local area, so all marketing efforts should be done at the local level (flyers at local businesses, SEO optimization for specific geographical location, etc.).
Marketing Tactics: What specific actions will you take to reach your target audience (content creation, advertising, partnerships, etc.)? The most overlooked marketing tactic is strategic partnerships because they are not thought of as traditional marketing, however they are often the most reliable way to establish a consistent customer base and are often lead to the lowest customer acquisition cost due to the passive nature of a well planned strategic partnership. An example is a Real Estate Agent that establishes a strategic partnership with a title and escrow company. The Real Estate Agent supplies the Title and Escrow company with a consistent flow of clients and in exchange, the Title and Escrow company provides a consistent and personal service to the Real Estate Agent's clients, which helps the Real Estate Agent close deals faster and more reliably. When considering marketing tactics, the most important metric is return on investment (ROI), or what do you receive for the amount you spend.
6. Create a Financial Plan
A solid financial plan is crucial for your business's success. Include the following components:
Startup Costs: Outline your initial expenses. Besides the obvious expenses (rent, equipment, inventory, licensing, etc.), make sure to also include a minimum of 3 months of monthly operating expenses as a reserve. Treat it as a fixed startup cost.
Revenue Streams: Identify how your business will make money. Only include revenue streams that are considered primary or proven. For example, an orthodontist may be able to receive a $250 kickback from Invisalign if the orthodontist uses their product on a patient. The orthodontist should not put this potential kickback in their projected revenue stream at the start of the company, as they do not know how many patients they will have in a given year that recommending the Invisalign product to would be appropriate. If the orthodontist has been in business for 5 years and has used the Invisalign product on an average of 20 patients a year, then the revenue stream could be considered as proven.
Profit and Loss Projections: Estimate your revenue, expenses, and profit over a specific period.
Break-Even Analysis: Determine when your business will start making a profit.
7. Outline Your Operations Plan
Your operations plan should detail how your business will run on a day-to-day basis. Include information about:
Location: Where will your business be based? Is the location consistent with your MDP?
Technology: What technology and tools will you use? Have you included the expenses of these technologies and tools in your profit and loss projections and start up costs?
Staffing: How many employees will you need and what roles will they fill? Is this cost reflected in your start up costs and profit and loss projections? Does the number of projected employees allow you to achieve your MDP?
Processes: What key processes and workflows will you implement?
8. Plan for Scalability and Growth
Consider how your business will scale over time. Outline strategies for growth, whether it’s expanding your product line, entering new markets, or increasing your marketing efforts. It is easy to lose track of time and become hyper focused on the task at hand while running a business. It is helpful to associate certain goals with your scalability and growth plans. For example, if you plan on opening a second location. Set a benchmark that would allow for this expansion to take place. For example, when gross revenues are $750,000 a year, then I will open a second location. By doing this, you can assess whether it is a sound financial decision and also hold you accountable for taking action and continuing to expand your business.
9. Review and Revise Regularly
A business plan is not a static document. Regularly review and revise it to reflect changes in the market, your goals, and your business’s progress. This ensures your plan remains relevant and useful.
Creating a business plan that works requires careful thought, research, and planning. By following these steps, you can develop a comprehensive and actionable plan that guides your business toward success. At The Success Gameplan, we’re here to guide you through every step of the process and ensure that you are not only set up for success, but to dominate your market and have the profits to show for it. If you need help crafting your business plan or implementing any of these strategies, don’t hesitate to reach out. Set up a meeting through any of our channels of communication listed below and we will schedule a FREE 45-minute consultation that will provide you with the basic framework for quickly increasing profits with no commitment on your part.
Remember, a great business plan is the foundation of a thriving business. Start building yours today!
The Success Gameplan
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