How to Create a Business Plan for the Online Business Owner
If you Google how to start a business, many times you’ll come across the need to create a business plan. While I’m not against business plans I feel like it can be a hurdle to the enthusiasm and excitement you have to get started. When you come up against a daunting, 20+ page plan it can take the wind right out of your sails.
If you’re seeking investors, I think starting with a business plan is key. But for us creative entrepreneurs, us solopreneurs and online business owners, what we just need is a plan for how we’re going to make money with what we do.
So today I would love to uncover the key aspects of a business plan, which aspects you need for your online business and how to go about creating a business plan that works for you.
When I was first beginning R Artspace back in 2016, I remember Googling business plan and printing out this 24-page snooze fest and trying to fill it out the best I could, but feeling very overwhelmed at the prospect. So if you’ve ever thought you’ve needed one, you’re not alone.
So, first off, what is a Business Plan?
Now before you zone out, it’s important to note that a business plan is a great thing for big businesses and corporations. But for solopreneurs or new-to-online-business creatives like us, it’s not all that necessary.
According to The Balance Small Business, a business plan is a document outlining the operational and financial objectives while containing a detailed plan and budget to reach those objectives.
Here are the sections of a traditional business plan: The Industry Overview, Market Analysis, Competitive Analysis, Marketing Plan, Management Plan, Operating Plan, Financial Plan and Appedicies.
Even though Entrepreneur.com states that people who complete a business plan are 2 and a half times more likely to get into business, I think a traditional business plan can be a hindrance to solopreneurs who want to dive in and get started with their online business.
So, let me break down the 5 questions you need to answer to create a plan that will work every time and get your online business started on the right foot:
1. What are you selling?
Name your idea. Are you selling a product or service? Remember business is all about meeting and fulfilling a need so make sure your product or service is meeting a need in the market.
Think about the potato peeler, tax services, the mattress you sleep on, the hairdresser you see, or the car you drive. All these things meet a need in your life and that’s what your business is supposed to do.
So as you write down your service or product idea, make sure it fulfills a need people have or solves a problem.
2. Who is your target audience?
Who do you want to buy your product or service? This is why an important step in the process of starting your business is market research.
The best way to do market research is to ask people. And I think it’s important to ask the right people. The people who you’re interested in working with. It’s not helpful to get your aunt’s opinion unless she’s in your target market. Find out from the people you would actually want to be a customer.
If you’re unsure who your target audience is, I encourage you to choose a group of people you would like to work with: perhaps it’s new moms with young children, maybe it’s women business owners who make over 6 figures, it’s important to start somewhere with knowing who you would want to serve.
And, I would like to add here that the more narrow (or niched) the market the better. While this is super scary to do, cause, wouldn’t it be better to reach everybody instead of just a small group of people? Counterintuitively, when you market to everybody you market to nobody. When you niche down, you can more easily rise to the top of that market and become the industry expert.
My friend did this really well. She started out as a VA but quickly discovered her love for coaching. So she became a coach specifically for women starting their VA business. Genius! She quickly rose to be the expert in that niche and has a profitable business that’s growing every day.
And, I would like to add, you can always change your target market as your business evolves and grows. That’s kinda part of the process anyway.
3. Who is your competition?
This one may come as a surprise, but it’s important you know who else is out there offering what you are. Why is this important? Great question. When you know who else is out there offering a similar product or service:
It validates that there’s a demand
It helps you learn how you can present your offer differently
It shows you what people are willing to pay
I think it’s helpful to write down a list of your competitors, find out what they’re offering, who they’re targeting, how much they’re charging. Doing this can help you know how to market your product differently. It also helps you see how you can position yourself in the market and what you can do to stand out– cause we all know, standing out is everything!
4. How do you plan to make money?
This is when things get tactical. How do you plan on making money? Will it be 1-1 services? Digital products? Group coaching? Perhaps it’s a combination of many ideas. I think the most important thing, when you’re just getting started with your online business needs to have ONE way to make money and get good at that.
As your business grows, as you gain credibility and get testimonials THEN you can branch off into other avenues of creating an income.
I love watching Shark Tank, and a big mistake a lot of the entrepreneurs make is having too many ideas too soon. Their business model is scattered and all over the place and the sharks, 9 out of 10 times, opt-out cause the business model is confusing.
In the beginning, it’s beneficial to keep your business simple with your services and get really great at that one product or service. If you have ideas you would love to pursue, write them down and save them for later.
5. How do you plan to reach your target audience?
This is what marketing 101. How do you reach potential clients and sell your product or service? Having a marketing plan is how your business will make money and sign clients. Marketing plays such a big role I made it apart of my branding and website design process as I work with new online business owners.
There are many forms of marketing: content marketing, network marketing, social media marketing, email marketing, multi-level marketing, and so many others. I highly recommend content marketing. This is creating valuable content that resonates with your target audience so you can be the trusted person they seek when they need help.
From question 2, If you know who your target audience is, it’s a lot easier to come up with a marketing plan. If you know you’re trying to reach millennials with natural beauty products, social media marketing would be a great idea, such as utilizing Instagram stories. Or if you’re trying to reach an older demographic, Facebook would be a good option.
And just like what I mentioned in the last point, choose 1–2 ways to market in the beginning. Don’t try to do it all at once cause that’s the easiest way to burn out.
So to recap:
1 / NAME YOUR PRODUCT OR SERVICE
2/ CHOOSE YOUR TARGET AUDIENCE
3/ RESEARCH YOUR COMPETITION
4 / PLAN A WAY TO MAKE MONEY
5/ DEVELOP A MARKETING PLAN
When you can outline these 5 things, it’s SO much easier to begin your business. You’ll have direction, purpose and a plan.
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