Whether you need a quick startup overview or a detailed plan for investors, a business plan includes six key elements outlined in a free template and explained below. must be present. The main difference between starting a small business and starting an investor-funded business is the market research and operational and financial details needed to support the concept.
1. Your mission or vision
Start by declaring your dream for your business. You can also call this an executive summary, vision statement, or mission. Whatever you call it, the first part of your business plan summarizes your idea by answering five questions. Keep it concise, like an elevator pitch. We expand on these answers in the next section of the simple business plan template.
- What does your business do? Do you sell products, services, information, or a combination thereof?
- Where does this happen? Do you conduct business online, in-store, through mobile means, or in a specific location or environment?
- Who does your business benefit? Who is your target market and the ideal customer for your concept?
- Why would a potential customer care? How can you get your ideal customer to notice your business?
- How is your product or service better than your competitors? Why would your ideal customer choose you over your competitors?
These answers are easy to come by if you have a solid business concept, but don't worry if you get stuck. Use the rest of the planning template to brainstorm ideas and tactics. As you consider ideas and options, you'll quickly find these answers and maybe even new directions.
2. Offer and value proposition
Here we break down the details of your offer, whether it's selling a product, providing a service, or both, and why everyone should care. That's the value proposition. Specifically, it expands on the answers to his first and her fourth items in Mission/Vision.
After completing this section, you may discover marketable business opportunities that you haven't considered yet by considering your value proposition. So take some time to brainstorm possibilities in this section.
For example, a cottage baker startup specializing in gluten-free or keto-friendly products may be a value proposition that a specific audience is very interested in. Additionally, you can extend that value proposition by offering wedding cakes and other special occasion cakes that incorporate gluten-free, keto-friendly, and traditional cake elements for all your guests to enjoy.
3. Target audience and ideal customer
Now consider bullet point number three: Who does your business benefit? Identifying your ideal customers and increasing their acceptance of your products and services is essential in defining your sales and marketing strategy, and can also help you fine-tune your offerings. .
There are many ways to research your potential audience, but a shortcut is to identify the problems people have that your product or service can solve. If you start as a problem solver, it's easy to define your target audience for your marketing efforts and describe the wants and needs of your ideal customer.
Using the cottage baker startup example, the problem people have is finding baked goods that are gluten-free or keto-friendly. Examining the wants and needs of these people reveals that they may be health conscious or dealing with health issues, and are willing to spend more money on products that are difficult to obtain. It may reveal a target audience you don't have.
However, it is essential to have a customer base that can support your business. You can become too specialized. For example, our bakery startup attracts a broader audience and increases revenue by offering a wide selection of traditional baked goods in addition to gluten-free and keto-focused specialty dishes. can do.
4. Revenue sources, sales channels, and marketing
Thanks to the internet-driven economy, startups have many revenue opportunities and can connect with their target audience through various channels. Revenue sources and sales channels also serve as marketing instruments, so in this section he can cover all three.
source of revenue
Revenue sources are different ways to make money in your business. A planning template lists how you will make money at launch and also includes ideas for future expansion. The income potential may surprise you.
For example, our cottage baker startup might consider the following revenue streams:
- Product sales: Online, pop-up shops, wholesale, and (in the future) in-store sales
- affiliate income: Monetize your blog and social media posts with affiliate links
- advertising revenue: Reserve space on your website for advertising
- E-book sales: (Future) Publish a recipe e-book targeting the gluten-free and keto-friendly dessert niche
- video income: (Future) Monetize a YouTube channel featuring how-to videos for the gluten-free and keto-friendly dessert niche
- Webinars and online classes: (Future) Monetize coaching-style webinars and online classes covering professional baking tips and techniques.
- Members-only content: (In the future) Monetize the members-only section of your website for specialized content that complements your webinars and online classes.
- franchise: (Future) Monetize your specialty cottage bakery concept and sell it to franchise entrepreneurs
sales channel
Sales channels enable revenue streams. This section also answers the question “Where will this happen?” in his second item in the vision.
Product sales channels for the cottage bakery example include:
- Mobile point of sale (POS): Mobile platforms like Shopify and Square POS to manage in-person sales at local farmers markets, fairs, and festivals.
- e-commerce platform: Online stores for online retail sales and wholesale orders such as Shopify, Square, WooCommerce, etc.
- social media channels: Shoppable posts and pins for online sales via social media channels: Facebook, Instagram, and Pinterest.
- Physical store location: For brick-and-mortar sales, once your business has grown to the point where it can support a physical location.
Channels that support other revenue streams may include:
- affiliate income: Blog section for e-commerce websites and affiliate partner accounts
- advertising revenue: Reserved advertising space on EC site
- E-book sales: Amazon e-book sales by Amazon Kindle Direct Publishing
- video income: YouTube channel with ad monetization
- Webinars and online classes: Online class and webinar platform supporting member accounts, recording, and playback
- Members-only content:Password-protected website content using membership apps such as MemberPress
marketing
Today, the lines between marketing and sales channels are blurring. Social media, e-books, websites, blogs, and videos serve as both marketing tools and income opportunities. These are ideal marketing tools for Lean Startups, as most are free and those with advertising options are very economical.
However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers, and magazines. Including these advertising costs in a simple business plan template will help you build your marketing plan and budget.
5. Structure, suppliers and operations
This section of the simple business plan template explains how to structure and run your business. Details include the type of business organization the startup will undertake, roles and responsibilities, supplier logistics, and day-to-day operations. Also, include any certifications or permits you need to start your company in this section.
The Cottage Baker example uses the following structure and startup plan:
- business structure: A sole proprietorship “doing business as'' (DBA).
- Authorization and authentication: County-issued food handling permits and state cottage food certifications for home-based food production. Optionally, check out certified commercial kitchen rentals.
- roles and responsibilities: Sole proprietorship, all roles and responsibilities are with the owner.
- supply chain: Buy bulk ingredients and food packages through Sam's Club, Costco, and Amazon Prime for an annual fee. Urain for transporting goods. No membership required.
- daily work: We source our ingredients, bake three days a week, and fill local and online orders. Reserve time for specialty sales, orders from wholesale partners, and market events as needed. We ship online orders every other day. Update your website and write marketing and affiliate blog posts on days other than shipping days.
6. Earnings forecast
The final task is to list your anticipated business start-up and ongoing cost and profit projections in a simple business plan template. Thanks to free business tools like Square and free marketing on social media, Lean Startups can be launched with little upfront cost. In many cases, all you have to pay out of pocket is the cost of the product, shipping, packaging, business license, and business card printing.
cost prediction
Our Cottage Baker's projected lean startup costs may include:
Gross profit forecast
This will help you determine the retail price and sales volume you need to stay in business and hopefully earn your own income. Use product research to identify the target retail price for your products and subtract your product costs, such as hourly rates, raw materials, and supplier costs. The total amount is the gross profit for each product or service.
Here are some examples of expected gross profits for Cottage Baker.
conclusion
While it's always beneficial to put careful thought and detail into your business plan, don't get so bogged down in your plan that you never hit the start button to start your business. Also, remember that your business plan is not set in stone. As markets, audiences, and technology change, so do goals and the means to achieve them. Think of your business plan as a living document, and periodically review, expand, and restructure it in response to market opportunities and the demands of business growth.