I’m going to talk to you guys the same way I talk to people who ask me for advice every day. Straight to the point. Most people reading this usually ask, “do I need to a plan?” Instead of asking, “how do I use my business plan for? The short answer is, there are only two practical uses for a business plan:
1. To force you to think about back-office structure (finance, legal, and all the other stuff that goes into running a business) or
2. To get someone to invest in your product or service.
If the business plan is just for you, it’s a starting point. It’s not complicated. Well, it can be if you want to plan out every little detail. But it doesn’t have to be overly complicated. That’s what “traditional” business planners want you to think. If you’re reading this post, there’s nothing traditional about how you’re trying to push this idea forward. And that’s ok. Really, it’s ok to not know every little detail or plan for every possible hurdle at this point. Don’t get it twisted; you will need to think about some basic concepts as you move forward, which is the point of today’s post.
Let’s talk about a basic business plan. First, I’ll provide you with a definition of this concept. A basic business plan covers the general thought process of a product or service an entrepreneur wants to put in commerce. A basic business is simplistic in nature and answers specific questions that are designed to get the company started. A basic plan covers six (6) key areas:
1. Your idea.
2. Why people will pay for your idea;
3. The cost to produce your idea;
4. How you will measure the success of your concept;
5. Identifies the providers your idea will compete with;
6. And the essential steps you need to take be an official business .
In a nutshell, the basic business plan pushes you to take your idea out of your head and put it down on paper. The key to being successful at this stage is to remind yourself NOT TO OVER COMPLICATE IT. At this point, you are transforming your idea/side hustle/something you’re good at into a PROFITABLE business. Your focus should be more perfecting the product or service rather than overthinking the basic business plan. You have to remember that this is the starting point. In about six (6) months to a year, you will have some business history. That newfound business history will give you the necessary information that will help you take the business to the next level. And when you’re ready, I have a full business plan structure waiting for you.
But we are not there yet. To help you start the business, I’ve developed a basic business plan that can fit on one sheet of paper. If you are just beginning, go check out the resources and download the “The Basic Business Plan.” Fill out the paper. Send me a message if you want to talk about your completed plan.
You got this! And I am here to help.