How to Write a Business Plan - Entrepreneurship 101
Summary
TLDRIn this insightful video, Gillian Perkins shares her journey from starting a business with no resources to developing a streamlined process for creating effective business plans. She outlines six essential sections, including an overview, company message, marketing strategy, product description, production details, and goals. Perkins emphasizes the importance of clarity, strategic planning, and simplicity, offering a free template to help entrepreneurs organize their business and grow strategically.
Takeaways
- π Starting a business with no money, skills, or plans can be challenging, but it's possible to create success through perseverance and clarity of objectives.
- π Writing a business plan, even if initially messy and time-consuming, helps in creating clarity about the business's objectives and strategies.
- π After two years of working on a business plan, the speaker was able to double the size of their business, demonstrating the power of planning and strategic growth.
- π οΈ The speaker has developed a streamlined system for writing business plans, making the process faster, simpler, and more practical.
- π A business plan should consist of six main sections: Overview, Message, Marketing, Product, Production and Delivery, and Goals.
- π’ The Overview section should include the company's structure, location, basic operations, mission, and a chart of accountability for major tasks.
- π£ The Message section is crucial for defining the company's communication to customers, including the problem solved, the result created, and the company's unique selling proposition.
- π― In the Marketing section, it's important to define the target market, including demographics, psychographics, and where these customers can be found.
- π The Product section should focus on the main product, describing what it is, the result it creates, and the impact it has on customers' lives.
- π― Goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and can include sales numbers, revenue, profit, customer impact, and development.
- π The speaker emphasizes the importance of writing a business plan to identify unknowns and to keep the business organized and strategic, rather than avoiding it due to perceived complexity.
Q & A
What was the initial condition when the speaker started their first business?
-The speaker started their first business with no money, no skills, no plans, and barely any ideas.
What did the speaker realize was essential after working for several years?
-The speaker realized that having a plan was essential, even though the initial plan was messy and not very useful, it helped them create clarity about their business objectives.
How did the speaker's business grow within two years after creating a plan?
-Within two years, the speaker's business more than doubled in size, they hired a staff of a dozen people and attracted hundreds of new customers.
What are the six main sections of a business plan according to the speaker?
-The six main sections of a business plan are: 1) Overview, 2) Message, 3) Marketing, 4) Product, 5) Production and Delivery, and 6) Goals.
What should be included in the overview section of a business plan?
-The overview section should include the company's business, structure, location, a brief description of the company's activities, its mission, and a chart of accountability.
Why is the company's mission important in a business plan?
-The company's mission is important because it is the driving force behind the business plan, focusing all plans towards achieving it.
What is the purpose of defining the company's message in the business plan?
-Defining the company's message is crucial for communicating clearly with customers, understanding who the customers are, how the company fits into their lives, and how it can help solve their problems.
What are the key elements to include when defining the target market in the marketing section of the business plan?
-The key elements to include are demographics, psychographics, estimated size of the target market, and where these customers can be found.
What is the significance of having a visibility strategy, lead generation strategy, and conversion strategy in the marketing section?
-These strategies are significant for explaining how potential customers will learn about the brand, how contact will be established with them, and how to turn leads into paying customers.
Why does the speaker recommend focusing on one main product in the product section of the business plan?
-Focusing on one main product simplifies business development and allows for a more structured approach to selling and marketing the product.
What should be the approach to setting goals in the final section of the business plan?
-Goals should be specific, measurable, and have a deadline. It's recommended to set both one-year and five-year goals to have both short-term and long-term objectives.
What advice does the speaker give regarding the length and complexity of a business plan?
-The speaker advises to keep the business plan short and relatively simple to ensure it remains useful and is more likely to be referred back to.
What is the speaker's final recommendation for those who are yet to write their business plan?
-The speaker recommends downloading and printing out the provided business plan outline, scheduling time to fill it out, and not to put off writing the business plan as it can have a significant long-term impact.
Outlines
π Starting a Business from Scratch
The speaker shares their journey of starting a business with no initial resources, skills, or concrete plans. After years of self-employment, they developed a business plan that, despite being messy and time-consuming, provided clarity on business objectives and strategies. This process led to significant business growth within two years, including expanding the team and customer base. The speaker has since refined the business planning process, making it more streamlined and practical. They introduce a six-section business plan and suggest starting by jotting down ideas for each section before compiling them into a cohesive document.
π Crafting a Business Plan: Structure and Strategy
The speaker outlines the six main sections of a business plan: an overview, marketing, product, production and delivery, and goals. They emphasize the importance of starting with a clear understanding of the company's mission as the driving force behind the plan. The overview should include company structure, location, and a brief description of operations. The speaker also details the need for a chart of accountability, defining who is responsible for key tasks. The second section focuses on the company's message, targeting customers, and how the company fits into their lives by solving problems and creating desired results. The third section delves into marketing strategies, including visibility, lead generation, and conversion strategies, highlighting the importance of identifying target customers and effective marketing channels.
π― Defining Products and Setting Business Goals
The speaker advises focusing on a primary product for the business, describing its results and impact on customers' lives. They recommend identifying the main product and detailing its benefits and effects, followed by an overview of other products offered. The final section of the business plan should include setting specific, measurable goals with deadlines rather than attempting complex projections, which can be challenging for new or small businesses. The speaker encourages simplicity and practicality in the business plan to ensure it remains a useful tool for strategic growth and organization.
π Final Thoughts on Business Planning
The speaker concludes by emphasizing the importance of not overcomplicating the business plan and keeping it concise to ensure it remains a useful document. They acknowledge that it's normal not to know all the answers when starting the planning process and view the business plan as a tool for discovery and clarity. The speaker provides a free, neatly organized outline for viewers to download and use as a template for their own business planning. They also encourage viewers to take action by scheduling time to complete the plan, as it can significantly impact the organization and strategic direction of their business.
Mindmap
Keywords
π‘Business Plan
π‘Objectives
π‘Marketing
π‘Target Market
π‘Product
π‘Result
π‘Impact
π‘Accountability
π‘Mission
π‘Strategic Growth
π‘Profits
π‘Goals
Highlights
Starting a business with no money, skills, or clear ideas can be challenging but rewarding.
Creating a business plan, even if initially messy and time-consuming, can provide clarity on objectives and strategies.
After two years with a plan, the business had doubled in size, with a staff of twelve and hundreds of new customers.
Developing a streamlined system for business planning makes the process faster, simpler, and more practical.
A business plan consists of six main sections: Overview, Message, Marketing, Product, Production and Delivery, and Goals.
The Overview section should include the company's structure, location, and a brief description of its operations.
A company's mission is crucial as it defines the driving force and goals of the business plan.
The Accountability chart outlines who is responsible for major tasks in marketing, operations, and finances.
Defining the company's message is key to communicating effectively with customers and standing out in the market.
Identifying the problem your company solves and the results it creates for customers is essential for a clear value proposition.
The Marketing section should detail the target market's demographics, psychographics, and where they can be found.
A visibility strategy, lead generation strategy, and conversion strategy are vital for turning leads into customers.
Writing a business plan helps uncover unknowns and areas that require further research or development.
Focusing on a primary product simplifies the business development process and marketing message.
Describing the product's result, impact, and how it affects customers' lives is more important than the product itself.
Setting specific, measurable goals with deadlines is more practical than making sales or customer acquisition projections for small businesses.
Keeping the business plan concise and simple ensures it remains a useful tool rather than an overly complicated document.
A neatly organized business plan outline is available for free download to assist in the planning process.
Writing a business plan is a strategic long-term investment that can significantly impact the organization and success of a business.
Transcripts
twelve years ago I started my first
business and I started with absolutely
nothing I don't just mean I started with
no money I started with no money no
skills no plans barely even any ideas
and let's just say that was a tough way
to start it's tough to build something
successful when you don't even know what
you're trying to build after working for
myself for several years I finally got
around to coming up with a plan it was
messy it took me forever to write and
honestly not really that useful of the
finished document but in the process of
writing the plan allowed me to create a
lot of clarity for myself about what my
objectives for the business were and how
I would reach them within the next two
years I had more than doubled the size
of my business
hiring a staff of a dozen people to run
it for me and attracting hundreds new
customers since that time I've written
quite a few business plans both for my
own companies and for those of my
clients and at this point I've developed
a system to streamline the entire
process not only making it faster and
simpler but also way more useful in a
really practical way if you want to get
your business organized and start
strategically increasing your profits
and growing towards your goals then keep
on watching this business plan has six
main sections and I'd recommend that you
start by scribbling your ideas for each
on a separate blank piece of paper once
you get your ideas worked out you can
create one cohesive document the six
pages of your business plan are one
overview to message three marketing for
product five production and delivery and
finally it's six goals the first page of
your business plan will be an overview
it's going to give a basic understanding
on what your company does and the
structure of your company now you're
seeing me write it down here in my
sloppy messy handwriting however I typed
up a nice neat version for you to use
for yourself so if you want a copy of
that just check the description down
below it's completely free and you can
use it to write your own business plan
in that first overview page of your
business plan you want to include your
business
your company structure the location
where you do business and also a brief
description of exactly what your company
actually does the next piece of
information for your company's overview
is your company's mission and this is
really important because it's the
driving force behind your business plan
it's what all your plans are focused
towards achieving and if you don't have
a mission it's like trying to make plans
to reach a goal without having the goal
so make sure you don't skip this step
the final component of the overview page
is your chart of accountability now this
chart describes who is accountable for
which of the major tasks involved in
running the business and the three main
areas of count ability and most
businesses are marketing and sales
operations and finances the second page
of your business plan will focus on
outlining your company's message it's
really important if you want your
business to be successful that you have
a clear idea of what message you are
working to communicate to your customers
who are those customers how do you fit
into their lives and how can you help
them solve a problem that they're facing
and create a result that they're looking
for as you can see here the questions
that you'll want to answer on this page
of your business plan include what
problem does your company solve for your
customers what result does your company
create for those customers how does your
company create those results who does
your company serve why do you do what
you do why should your customers choose
you over your competition and then
finally what is your company's step by
step plan for creating those results for
the customer or what is your proprietary
system this both helps to answer the
question what sets you apart from your
competition and it also shows your
customers how you're going to create
those results that you're promising
which will give them much greater
confidence in your ability to create the
results okay now let's move on and talk
about the third page of your business
plan this page focuses on marketing and
generating sales first of all you'll
want to define your target market by
their Democrat
and their psychographics demographics
are attributes such as their age their
income where they live
whereas psychographics have to do with
their interests their desires and their
fears here you'll also want to include
an estimated size of your target market
and even more important that that is
where you have identified that you can
find groups of those target customers
and here's a little big hint if you
haven't yet figured out where you can
find groups of those customers be it
online or off you're probably going to
have trouble successfully marketing your
product or service that you sell so if
you come to this part in the business
plan and you don't know what to put here
you're probably gonna want to do some
research and make sure that this target
customer that you have defined with the
demographics and the psychographics if
someone who you actually can find groups
of because if you can't find a group of
them then you might want to consider
redefining that target customer and
slightly pivoting your marketing
position the final three pieces of
information that I recommend you include
on this page of your business plan are
your visibility strategy which explains
how people will first learn about your
brand and about your products your lead
generation strategy which explains how
you will establish contact with the
people who have discovered your brand
and then finally your conversion
strategy which is essentially your sales
strategy explains how you're going to
turn those leads that you've generated
into paying customers
here is a quick aside as you're working
through this business plan for yourself
it's more than likely that you won't
know the answers to all of these
questions and you won't have all these
things figured out yet and I just want
to let you know that that is completely
alright and actually one of the main
purposes of writing your business plan
is
to become aware of those things that you
haven't thought about yet or that you
haven't figured out that you don't know
because only once you're aware of what
you don't know will you be able to
figure those things out so don't put off
writing the business plan because you
don't know everything yet but rather
write the business plan so that you can
get very clear on exactly what you do
know and what you need to figure out all
right
now let's move on to the fourth page of
your business plan this page describes
the product or products that you sell
and just so we're clear here a product
could be a physical product or a digital
product or a service but I'm just using
the term product in a general sense on
this page I highly recommend that you
choose just one a product as your
business's primary product you might
sell several different things you might
even sell hundreds of different things
but determine what your main product is
that you're going to Center your
business's marketing message around and
really try to structure your business
around selling the reason that I
recommend that you do this is that many
different parts of your business
development will be much easier if you
do have one product that is the focus on
this page of the business plan start by
first of all identifying what that
product is and then describing the
result that the product creates and
here's a little hint what your company
sells is really the result of the
product creates not the product itself
after describing the results describe
the impact of the product create this is
different than the result itself it's
instead how the customers life is
affected by the result of the product
creates for example if the product that
you're selling physically is a vacuum
cleaner then the result of the product
creates is clean floors but the products
impact is that your prospect feels
better about the state of their house
has a cleaner healthier living
environment and perhaps feels more
confident inviting company over once
you've described those three things for
your main product you can move on to
other products that your company sells
describing first of all what the product
is
second the result that it creates and
finally the impact that it has on
customers lives the sixth and final page
of your business success plan has to do
with your goals now if you look at any
examples of business plans in the past
or read a guide on how to write a
business plan you might have seen a
section that focused on projections so
sales projections or new customer
acquisition projections or market share
projections and if you've tried to write
a business plan in the past and you
tried to write a section you may have
found it very difficult and chances are
that's because you're running a small
business or maybe you've just started
your business and it's really difficult
to make accurate projections or
projections at all for that matter if
you don't have any data to base them on
and that's why I'd recommend that if you
are just starting your company or you've
only been in business for a couple of
years then instead of trying to create
projections you instead simply set goals
you can decide exactly how long you want
to make your goals for but a good place
to start would be to set some one-year
goals and also some five-year goals that
way you know what you need to work on
right now but you also know where you're
aiming longer-term for each time frame
you can set whatever goals you'd like
however some that I might recommend our
number of sales total revenue profit
impact in terms of the number of
customers who you help or how wide you
spread your message and development
which could be the extent to which
you've advanced the product that you
create and offer or to what extent
you've built your company and of course
when setting goals it's always important
to set specific measurable goals and to
set a deadline for when you're planning
to reach somebody all right that's
everything you need to include in your
business plan as you can see it's six
simple pages and you probably already
know most of the information that will
be going into this business plan already
there are many other pieces of
information that you may want to include
in your business plan and of course
you're more than welcome to include any
relevant information that describes how
you successfully run your
and how you plan to reach your goals
however my final piece of advice for you
is to make sure that you don't over
complicate things more words are not
better in fact your business plan will
be the most useful if you keep it short
and relatively simple because if you
write a document that's 20 40 or more
pages long chances are high that nobody
will ever even go back and read it ever
again as I mentioned earlier on I put a
neatly organized outline of this
business plan together for you there's a
link in the description below where you
can download it for free if you have any
feedback on it be sure to let me know
I'd recommend that you download it and
print it out now and to schedule some
time on your calendar so that you
actually get around to filling it out
because writing a business plan is one
of those things that can have a big
long-term impact on your business but
because it isn't actually urgent you
might put it off indefinitely and until
you make the time to write your business
plan your business will continue to be
disorganized and not as strategic as it
could be all right well that is
everything for today's video if you
enjoyed this video or found it helpful
then please hit that like button to let
me know and also consider subscribing to
my youtube channel I make two videos
here every single week about
entrepreneurship success and personal
development and if you like this video
and you won't want to miss the next one
thank you so much for watching my name
is Gillian Perkins and I look forward to
seeing you again next time
[Music]
you
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