It’s hard to get somewhere if you don’t know where you are going.  In business, a business plan is the roadmap you follow towards your goal of success.  The hardest part is sitting down and getting started.

What does a business plan do?  A business plan is your Plan B.  You have this idea for a business.  A business plan answers all the necessary questions:  Where do I get money to fund the project?  When will I turn a profit?  What will be the advertising strategy?  All of these questions and more are rolled into a business plan. 

Without a business plan, you might not be prepared for what comes next.  Businesses can get into trouble.  With a business plan, you have mapped out other possible avenues to peruse if the path you are on doesn’t pan out.  A business plan also details what equipment you will need and how you will account for your cash flow.

A business plan can be several pages or a few.  It all depends on the complexity of your business and its structure.  Many businesses are small and they are sole proprietorships (one liable owner).  If you are forming a partnership, work on the business plan together.

Here are some categories for your business plan:

1.  Business structure – Will this be a sole proprietorship, partnership, corporation, or other?  In some cases, the business structure also determines accounting practices and other paperwork that needs to be completed for registering the business.

2.  Business name – Every business needs a name that it can stand behind.  The name will carry your brand, company ethic, and influence your logo.  A catchy name that is short and to the point is easy to remember.  Don’t make it too complicated for yourself or your customers.

3.  Business mission statement – What is your business about?  How will you operate?  What makes your product or service stand out from others?  The information here will help in developing a tagline for customers to associate with your business.

4.  Goals – Where do you see the business in five years?  Will it grow into other markets?  If so, what are those markets?  A business could begin as a physical building and expand into the online world.  You may work from your garage, but later decide to outsource most tasks.  The main goal of business is to grow and grow and grow.  Choose goals in that direction.

5.  Financial viability – What prices will you charge?  What profit do you expect to make?  You might not know how much, but based on the market, you can estimate how long until the first monies come in and a ballpark figure of yearly earnings.

A business plan doesn’t have to be complicated.  Its job is to be flexible enough to grow and change as you do.  If you choose another direction, rewrite portions of the plan to account for that.

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Creating a business plan is perhaps the single most important thing you can do to start and grow a business.  A business plan not only covers your business mission and vision but also outlines your strategy for research, marketing, fulfillment and all aspects related to your business.  A business plan will serve as your guide, your roadmap, to achieving your business goals and dreams.

Step One:  Your Business Description

The very first thinn to do is to sit back and draft a few paragraphs about what your business does.  You’ll answer the following questions:

• What does your business do?
• What are your products or services?
• Who is your audience?
• What makes you unique or different from your competition?

Condense your business description until it is concise and can be presented to someone in about thirty seconds.

Step Two:  Your Resources, Strengths and Weaknesses

In this second section, make a list of the resources you have for your business.  This will include office equipment, products or services, and also any people you can access for example your brother in law is an attorney and has agreed to help you with the formation of your company.

You’ll also want to conduct an analysis of your strengths and weaknesses.  What skills, knowledge and experience do you bring to your business and what areas are you weak in and will need help or further education?

Step Three:  Your Business Organization and Legal Considerations

What type of company are you going to form?

• Sole Proprietorship
• Partnership
• Corporation
• Limited Liability Company

Each offers significant benefits depending on your situation and goals.

You’ll want to take a look at the certifications, regulations, and insurance needs for your industry and location.  Additionally, you’ll want to take a look at how you’re going to handle financial reporting and taxes.

Step Four:  Operating Requirements

What do you need to start and grow your business?  This is the place on your business plan where you outline what you need to get started, for example your office equipment.  You’ll also want to outline the tasks required to run your business and who will perform those tasks.  For example, an accountant or bookkeeper, a shipping and fulfillment person, a virtual assistant, a copywriter and so on.

Step Five:  Financial Goals

What are your financial goals and how will you achieve them?   Outline your present finances, how much you have to invest into your business. Also outline your financial goals and how you’re going to achieve them.  If you’re seeking financing from an outside source, this section will be looked at very closely.  You’ll want to create a budget along with your pricing strategy for your products or services.

Step Six:  Sales and Marketing

This is a big section of your business plan and perhaps the most adaptable – it will change as you grow.  In this section you’ll want to outline your competition, who they are and what they do well.  You’ll also want to outline your strengths and how you’re going to position yourself above your competition.

You’ll also want to outline your marketing strategy and the various tactics you’re going to take to promote awareness and sales.  For example are you going to have a website, flyers, and advertisements and so on.

Step Seven:  Executive Statement

This is the conclusion of your business report and where you’ll wrap it all up into a nice concise package.  You’ll include your mission and vision statement here along with a summary of the previous six sections.

Congratulations!  Once you’ve completed your business plan you have a plan you can refer to, to keep your business on track.  It’s the best way to attain your goals and to achieve the business success you desire.

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So you want to start an online business.  Just like a brick and mortar business, there are things to tend to before you actually start finding clients and making some money.  Here are some tips for your journey into entrepreneurship.

1.  Flesh out that idea. At this point most traditional businesses would construct a business plan.  It details your strategy for getting started, how you will make sales and when you expect a profit, among other things.  If you know what area you will start with, that’s great.  If you only have a general idea, you need to do some more digging.

2.  Do some keyword research. This is a helpful tool for identifying your market and for niche marketing.  When people search on the Internet, they use certain words that will return the results they seek.  Those keywords can be widely used (getting millions of results) or not (with a few thousand results).  Some words are overused on the web.  You’ll want to pass those up in favor of others that haven’t been exploited by online marketers.  Keep a record of those keywords for later.

3.  Set up an office. You’ll need a place to work with a computer, desk, chair, and Internet access.  Most people have all-in-one printers so they can manage other office tasks easily.  Since your business runs in cyberspace, invest in the fastest Internet connection you can get in your area.  Don’t entrust your business profits to dial-up.

4.  Create an online presence. This will be your headquarters.  If you don’t know how to create a website, do a little reading on the subject.  In the meantime, shop around for a good webhost.  Here are a few things to look for:  tutorials for set-up, decent price, lots of bandwidth, design templates, extras, and 24-hour assistance.  No one wants to be left hanging after they’ve paid their money.

5.  Choose a domain name. The name of your business website needs to appeal to the search engines.  You can use some of those keywords you found to come up with a name that is relevant to your business and catchy at the same time.  When using more than three words, use hyphens between words to make the name easier to read.  A domain name search will tell if the name is available or not.  Register your domain name with a reputable service.  Be sure to renew it every year so you don’t lose it.

6.  Use some simple techniques to drive traffic your way. SEO content is one avenue.  If you love to write, create eBooks to sell or give away on your site.  Join business forums to learn about online marketing and how to showcase your product.  For selling products, you’ll need to add an online storefront to your website.

Are you interested in starting an online business?  Use these tips to get the ball rolling on your venture.

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