Disclaimer – always consult legal/financial professionals prior to making such a big commitment. It may cost more up front but save you BIG in the end!
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This post has some of the same points as my other post “Tips for Starting your Own Local Business” but a little more condensed and aimed for bringing on business partners and/or investors.
If you don’t want to start from scratch, head on over to my Etsy shop and edit my template here!
- Executive Summary
Explain your business and what you wish to accomplish for your clients/customers. - Business Description
Business Name: What will your business be named?
Location: Where will your business be located?
Owners: Who are the owners of this business?
Products and/or Services Offered: What will you be offering your customers?
Target Market: Who is your target market? Do your research!
Competitive Advantage: Why do you think your business sticks out from others? What facts do you have to back this up? - Products and Services
Describe in more detail the products and/or services you’re going to offer. - Market Analysis
Local Market: Identify demand for your business in your area, assess competition and target customer demographics. The US Census Data website is a good start (https://data.census.gov/). Enter your location and click on the “View Profile” to the right and it will give you a breakdown of statistics.
Customer Needs: Understand what drives customers to seek the product/services you wish to offer.
Pricing Strategy: Offer competitive pricing while ensuring profitability and covering your costs.
**TIP** if you don’t mind putting out your idea on social media, do a poll on Facebook or another app asking to see what potential customers think. - Marketing Plan
Website: If applicable, develop a user-friendly website where customers can browse available products/services, check pricing and order online.
Social Media: It’s powerful, use it! IG, Facebook, Tik Tok, YouTube, Pinterest, Search engines, etc.
Local Advertising: Consider advertising in local newspapers. People still read them! Put up fliers in grocery stores or gas stations or even other local business!
Word of Mouth: Encourage satisfied customers to spread the word and refer others to your business. - Operations Plan
Maintenance: Do you have equipment that needs to be on a maintenance schedule? Take that into consideration while creating your financial plan.
Repairs: Same with Maintenance. You can’t predict, but you can plan. - Financial Plan
Startup Costs: Find out what your initial startup costs may be. Take into account a website, product purchases, legal fees, licensing, insurance, accounting software, etc.
Revenue Projection: Estimate your revenue based on your market demand. Be conservative and realistic. Don’t fall for these YouTube and Pinterest folks that say they made $50,000 the first week they launched their business. It would be a good idea to put together a 2-5 year forecast as well.
Expenses: Along with startup costs, you’re going to have monthly expenses. These may be fixed or variable. Examples could be rent, utilities, software fees, credit card, phone, marketing, payroll, repairs, etc.
Profitability Analysis: Monitor revenue streams, expenses and profitability on a regular basis to make informed business decisions.
A financial plan is VITAL. I know a lot of us don’t like numbers, but if you don’t know how you’re doing financially, you can’t make sound business decisions. - Legal and Regulatory Compliance (I strongly suggest a legal professional to help guide you through this)
Licensing: Obtain any necessary licences and permits for operating the business in your area.
Liability Insurance: Depending on what your business is, protect IT and YOURSELF! Your legal professional can advise on what is best. General Liability insurance is a good starting point to cover potential damages or accidents. Reach out to your insurance company for suggestions. If you have any assets or road-worthy offerings, have VIN and dollar amounts ready.
Legal Forms: Consult with your legal professional for any forms you may need to protect the business interests (contracts/waivers/disclaimers/etc). - Growth and Expansion
Are you starting off small? Still working another job? Going full blown all-in? Explain! Make sure your financial plan is in-line with your growth and expansion.
Customer Feedback: Solicit feedback from customers to identify areas for improvement and potential expansion opportunities. You need to stay humble. I know this is your “baby”, your dream; but you need to have an open mind and take your paying customers’ comments into consideration.
Diversification: If you plan on expanding and based on customer feedback, explore additional options/products/services to diversify revenue streams and expand business offerings. - Conclusion
Sum up your business plan here. Talk again briefly about what you want to offer and how it will benefit your target market and/or local community.
All business plans will look different. Feel free to pick and choose any of the points and run with it. Comment below with any other suggestions to help out fellow entrepreneurs! Good luck!
