A business plan can be daunting. Whether you are starting a small business or expanding an existing one, how do you know where to start?
You are listening to the Kaz Johnson’s Podcast.
Hello and welcome to session 210. This week I am talking to you about your online business set up
Hello and welcome to the Kaz Johnson’s Podcast., my name is Kaz Johnson and I am your host today, this is episode 210, and Today I am talking to you about ‘How To Set Up a Business Plan’.
Creating a business plan is not easy, but it is worth the time and effort. A well-crafted business plan will help you achieve your goals in a more focused manner, leading to success for your company. In this blog post, we will discuss how to create a successful business plan.
Define your business idea
A business plan is how you will communicate your idea to investors, collaborators, and employees. It helps establish the company’s goals, its objectives for growth, and how it plans on achieving them.
The first step in creating a business plan is defining what your product or service actually does, how it solves a problem that customers have – what value proposition do they provide? For some products or services, there may be only one way of solving their particular problem but with others, there might be multiple solutions to consider depending on who the customer base would be like (large corporations vs small businesses). A good example of this would be if we were developing an app: how many different versions should exist? What features need to go into each version? We could create an app with just a basic feature set for the general public or we could make it more complex and include features aimed at small businesses.
Determine the market size and competition
This is perhaps the most difficult aspect of how to set up a business plan – you need to be able to answer some very tough questions, such as: how big is this market? Who are my competitors? What have they got that I don’t and what do they not offer that I can provide? You need to think about your customer base in terms of numbers. Remember though it might just be an idea at the moment so there may not yet be any customers! So how do we find out how big our potential market size could be for a product or service? We look at similar markets and study them carefully. This will give us an indication of whether or not there would even be enough people who want (or will pay for) our product or service.
Identify your target clientele
This is how you know how big your potential market size could be for a product or service. You look at similar markets and study them carefully. This will give us an indication of whether or not there would even be enough people who want (or will pay for) our product or service.
In order to answer these questions, it’s important that we identify the target clientele of what kind of business venture we are thinking about starting up first – because this may affect other decisions such as where to set up shop, how much capital funding might be required, how many staff members needed etc., all requiring careful consideration when making your own plan too!
Develop a marketing plan
The marketing plan is how you’ll advertise and get the word out about your product or service. Research how to reach your target audience by reading blogs, magazines, websites, newspapers etc., that they might read on a regular basis.
A successful marketing plan will include what channels are used for advertising (online vs paper), how many people in their target market typically see each ad campaign and how often ads should be run within those channels, as well as understanding where potential customers typically go to buy products like yours. It may also involve creating content for these sources of media so it reaches an even wider audience!
Developing a marketing strategy involves identifying which avenues are best suited towards reaching your desired customer base, then implementing them based on the information collected from step one.
It is important to understand how your target audience makes purchase decisions, how they spend time-consuming media, and which types of messages will resonate with them in order for a marketing plan to be effective.
Create a budget for startup costs
In this step I will explain how to set up a business plan is determining how much money you’ll need for startup costs. This will depend on the type of company and industry it’s operating within, but most businesses are going to require some amount of investment capital.
This can be broken down into an initial cash outlay which covers things like property acquisition/rental, equipment leasing or purchase (if needed), marketing materials such as brochures, posters, and advertising media with considerations made towards how often these items should be replaced based on frequency/quality of use. Startup expenses also include employment contracts including salaries and benefits if applicable that go beyond those covered by federal labour laws and other payroll-related expenditures like unemployment insurance contributions paid each quarter.
Estimate operating expenses:-
Including labour, materials, equipment, insurance, taxes, and utilities.
This section of the business plan is a critical component of how to set up a business plan as it identifies the operating expenses that will be associated with running your company. This includes payroll for employees, materials used in production or service providers such as paper and ink for printers and office supply stores, equipment which may include machinery necessary to manufacture products (such as ovens), or vehicles required by taxi companies. Estimating these costs can help you figure out how much money is needed on an ongoing basis so you know how much cash flow you’ll need each month/quarter from sales revenue to cover those costs.
If applicable, also estimate taxes owed including federal income tax payments due monthly, quarterly state unemployment insurance contributions if not covered by your state, and how much you will owe quarterly for other taxes such as sales tax.
Estimate how much money is needed to cover the cost of starting up your company. Does your product/service require a lot of equipment? Equipment may include machinery necessary to manufacture products (such as ovens) or vehicles required by taxi companies. You’ll also need office supplies like paper and ink for printers; furniture if it isn’t included in the lease agreement where you plan on working out of existing space; advertising materials including signage that can be customized with your logo or business name so people know who they are dealing with when making purchases from vendors at trade shows or conferences; phone service, internet access, postage stamps – all those day-to-day expenses that can really add up.
Even if your business doesn’t require a lot of startup costs, you will still need to cover the cost for things like supplies and inventory before generating revenue from sales – how much depends on how many products or services you offer and how expensive they are.
Consider how long it takes to break even based on these considerations. You may need more money than anticipated depending on how quickly customers make purchases or how often you have to purchase supplies (such as cleaning chemicals). If this is the case, adjust your plan accordingly by making sure there are funds set aside for these unforeseen expenditures.
It is important to outline a marketing plan before you start your business, as it will help guide the decisions that come later. Once you know your target market and have identified potential customers, use this information to develop an effective marketing strategy for attracting them. Whether it’s through social media or traditional advertising channels like TV commercials or radio ads, be sure to create a budget so that you can execute all aspects of your campaign effectively and efficiently.
That’s it for this week, this podcast is sponsored by the Online Business Academy, an online membership program that will help you plan, build and grow a successful business online with monthly master classes, quick wins, a weekly coaching session, as well as a whole host of resources as well and if you are thinking about starting an online business, why not start out with the challenge?