Writing a Business Plan

Summary

In this script, Jen is frustrated with her struggling business, while her young neighbor Jacob is thriving with his lemonade stand. Alex encourages Jen to brainstorm and create a business plan, which leads her to develop the idea of a dog wash booth at Mud Park. Together, they work through key components of a business plan, from market research and competitors to financial needs and marketing strategy. Jen learns the importance of a business plan, gaining confidence to pursue her venture while realizing the potential of her dog washing service.

Takeaways

• 😀 Start with a clear business idea: Define what your service or product is and how it will benefit your target audience. In this case, a dog wash booth at Mud Park.
• 😀 Research your market: Understand who your potential customers are, where they are, and what their needs are. Jen’s target market is dog owners who walk their dogs at Mud Park.
• 😀 A business plan helps bring structure: Writing a business plan isn't just for big companies; it helps you organize your thoughts and make informed decisions.
• 😀 Focus on customer value: Think about how your business will make life easier or better for your customers. For Jen, it's about cleaning dogs' paws to save owners time and avoid mess at home.
• 😀 Identify your competition: Even if you don't have direct competitors, researching other businesses in related industries can inspire you and help you identify unique selling points.
• 😀 Start small and iterate: Begin with a basic version of your product or service, gather feedback, and adjust accordingly. Jen suggests testing with one booth before expanding.
• 😀 Understand your resources: List the equipment, people, and funding you'll need. Jen needs tubs, dog shampoo, towels, and potentially a loan to cover initial costs.
• 😀 A clear market strategy is essential: Think about how you'll grow your business over time. Jen plans to advertise at pet stores and puppy schools to attract customers.
• 😀 Know your numbers: Consider costs, pricing, and potential revenue. Even without sales, think about your startup expenses and pricing structure to ensure sustainability.
• 😀 Planning ahead makes you more confident: Having a business plan helps you make smarter decisions, understand your market, and present your idea confidently to others.

Q & A

What is Jen's initial problem in the script?

Jen is frustrated because her neighbor, Jacob, a five-year-old, is making a lot of money with a lemonade stand, while she feels like her own business ventures aren't successful.

What suggestion does Alex give Jen to help with her business situation?

Alex suggests that Jen brainstorm and create a business plan, emphasizing that a business plan is helpful even for small-scale businesses like hers.

What business idea does Jen come up with during the conversation?

Jen comes up with the idea of a dog wash booth, where she will wash and dry dog paws for owners who are walking their dogs at Mud Park.

Why does Alex encourage Jen to consider the value she is creating for customers?

Alex encourages Jen to think about the value she is providing to customers, such as saving them time and preventing their homes from getting dirty by washing their dogs' paws.

How does Jen plan to run her dog wash business?

Jen plans to operate a booth with a washing station where dog owners can pay her to wash and dry their dog's paws.

Who does Jen see as part of her future business team?

Jen initially plans to run the business alone but envisions adding a second dog washer and a cashier in the future.

What does Alex suggest Jen might need down the line for her business?

Alex suggests that, in the future, Jen might need an advisor for legal and financial help to support her growing business.

What kind of research does Alex suggest Jen should conduct about her target market?

Alex advises Jen to learn more about her market, like understanding how many dog walkers carry cash, to help her decide which payment options to offer.

What is the key benefit of researching competitors, according to Alex?

Alex explains that researching competitors helps Jen identify what makes her business better and how she can differentiate herself in the market.

What are some of the steps Jen considers for growing her business?

Jen plans to start with one booth, gather customer feedback, advertise at local pet stores and puppy schools, and eventually upgrade her booth to clean more dogs and increase revenue.

What resources does Jen need to get her business started?

Jen needs several resources to start her dog wash business, including tubs, a water source, doggy shampoo, towels, and potentially capital for equipment or permits.

How does Alex help Jen view the importance of a business plan?

Alex emphasizes that a business plan helps Jen understand her business, make informed decisions, and confidently talk about it, even if it's a small-scale operation.