According to Benjamin Franklin if a person fails to make a plan he is moving towards failure. This is a pretty strong way to say that planning is a necessary part of life for all things big and small.
When it comes to doing business, planning is again crucial. If you have your business plan well established you will know exactly where you are headed to. In this article, we will give you 5 ideas to make an online business plan so you can make one that can get you in business. But first things first, let’s see what a business plan is.
- What is a business plan?
What is a business plan?
A business plan is a map that can guide you and potential investors about what you aim to do and how you will do it. It covers information about:
- Plan of action
- Innovation and uniqueness of the project
- Products involved
- Management strategies
- Sources of revenue
- Potential risks
- Marketing schemes
- Time frame
It’s everything from start to finish encapsulating your dream business but in a realistic and well-researched manner. A business plan is what you will present in front of an investor to convince him/her that your idea is worth it. It’s that important!
E.g., if you aim to start a company that works on SEO (Search Engine Optimization) in Connecticut and you want to compete with Connecticut SEO Companies, then you will have to convince the investor of how you, will prove better than the companies already present.
5 ideas/steps for writing a business plan for an online start-up
Now when you are done understanding what a business plan is, it’s time we share 5 steps to write one.
1. Executive Summary and Company Description
An Executive Summary is a short one pager section that emphasizes on key points. It persuades the reader to read further and is a summary of the rest of the plan. This is the place where you need to grab the reader’s attention!
If you are aiming for an online SEO company then highlight the important details in your plan that should interest the reader. The summary should include:
- The business goal, aim, and concept
- Product information and target market
- Marketing ideas
- Current and future finance information
- How many funds do you need and team information
The Company description is what will tell the reader/investor about you and your company. It should include:
- Business structure, model, and industry
- Business vision, mission, and the value your propose through your business
- Business background and objectives
- Your business team and their pays
Through the Company description, you will express what you aim to do and how you will make an impact through your brand.
2. Market Analysis and Management
Market analysis is the part of your plan where you explain what your target market is, its trends, how you will deal with competition, and is the target market profitable or not. Your target market should need your product and should value it.
About competition well, you will have both direct and indirect competition so you should be prepared for that.
The team that will make your brand a reality should be well explained. The roles, relationships, and contributions should be clear. The number of members and the power each has should also be well defined.
3. Products, services, and customer info
In this section, you will write about your products or the services that you will provide. This is the part where you can write about:
- Where the product/services come from
- How many products/services are available
- Product/service nature and design
- Its features
- Future products/services that you may launch
After product information has been added you will write about the customers you are targeting very specifically. Their age group, location, financial status, education, etc. Describe your customers so the readers know exactly who they are.
4. Marketing, logistics and operations
The marketing plan will include details about your products and how you choose to market them. For an SEO company, you may use social media and email marketing to reach customers. Whatever you plan, stress upon the product, its cost, how you will reach customers and where will you promote your products.
After the marketing plan is done you will write about the flow chain of the products. The suppliers, the production process, office space, how much product will be stored and how will it be transported to customers. This part of the document will highlight how your brand will function.
5. Financial planning
As no business can occur without money so here you will add information about your income and cash-flow statements along with balance sheets. This section will prove whether your business is profitable and good enough to fund!
In this article, we went through the definition and 5 steps of writing an online business plan. It must appear overwhelming but we assure you, once you are done with the business plan things will become easier ahead.
A business plan is not only good for future investments but its also good for your own planning and clarity. Research thoroughly, go through articles, and take your time. Time, effort, and money spent on it will prove profitable in the long run!