Small Business Smarts: How to Build a Business Plan
Part of a series | Small Business Smarts
Whether you're a solopreneur or a small business owner, creating a business plan is a strategy to maintain focus on your core strengths. The second video in the Small Business Smarts series outlines the key components of a business plan.
Key components of a business plan
Product and market definition
- Product: clearly define what you are selling.
- Audience: Identify who your potential customers are.
Unique value proposition
- Understand why you are the right person to sell this product.
- Differentiate your offering from competitors.
Operations and team
- Determine who will help you create the product.
- Outline the team structure necessary for operations.
Sales strategy
Identify sales channels and methods for selling your product.
Marketing and advertising
Plan how potential customers will discover your product.
Market research
Analyze competitors and their marketing strategies for insights.
Financial considerations
Estimate costs and outline financial projections including revenue and profit timelines.
Support tools and resources
- Use tools that address areas outside of your expertise.
- Collaborate with service providers like ADP for financial and legal management.
Conclusion
A well-structured business plan serves as a guide for business success, helping to navigate the journey of entrepreneurship effectively.
Download Plan, Launch, Thrive: The Small Business Owner's Toolkit today.
Video transcript of "How to Build a Business Plan"
When I started my small business, I knew what type of work I wanted to do, but I didn't know much about running a business.
The idea of having a business plan felt so beyond my capabilities that I kind of honestly ignored it. But a business plan isn't just for big companies. Even very small businesses and solopreneurs can benefit from having one. It's really just basically a strategy to keep you focused on what you do best. And don't worry about fancy jargon. A business plan is simply a way to get the important stuff down on paper.
So what should be in your business plan? First, let's break down your idea and simplify some of the jargon. What you're going to sell is your product. Your audience is who you're going to sell to. We need to know your expertise. Why are you the person to sell this thing? And why should we buy yours and not theirs?
That's referred to as a unique value proposition. Now, let's take this beyond your brilliant idea and think through some questions to help identify what collaborators, partners, and tools you might need. Who's going to make your product? This is the team you'll build operations. It sounds big, but it's really just about how your team is making this product. How and where is this going to be sold?
This is where you build your sales strategy. How are people going to actually find your product? This is thinking through the marketing and advertising plan. Market research, another thing that sounds kind of too big to tackle this is really just looking at how your competitors are doing all of the above. What's this all going to cost? That's your investment. And how and when will you actually make a profit?
These are your financial projections. These elements are the basics of a business plan. Once you have them figured out, it's time to find tools that can support anything that's outside of your comfort zone. For me, I'm a creative, so anything that can help me manage the numbers is going to be clutch. Partners like ADP can help you track your spending or efficiently run payroll.
Manage all your legal and compliance needs. Whether you're hiring your first employee or preparing to grow. The right tools and expertise can make your business plan a guide that helps your business thrive.
