A business plan outline is your foundation to succeed in starting a small business.
But managing it well is challenging, and the possibility to fail if you mishandle the operation and recording.
Hello, it is me, Eileen, the content creator of this blog site. The topic I will give you is your business plan outline in which is the first step in business.
If you want a guide to starting a business, let me know by email at email@example.com.
How to start a business?
First and foremost, if you are working a regular job, you can start as a side hustle.
A side hustle does not mean only buy and sell products. It is a starting point that if you want to grow into a business. And think like an entrepreneur.
Same with small business, as side hustle needs a business plan outline.
Why does it need to create one? What is the impact on your small business if you have a business plan outline?
A business plan is a structure or framework which composes the business plan outline that starts from the executive summary to the conclusion.
Make sure to create your long-term business goal because a business plan is your guide that can monitor your progress until you achieve it.
Begin with a 10-year plan, and break it into a yearly, monthly, and weekly. This is how the business plan outline works.
Before I give you the business plan outline, let me tell you why you need it and how important for a side hustle. It helps you to know your vision and your mission why you are doing it.
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Creating your business plan outline helps to know where you are right now.
It helps minimize your cost. Yes, and that is the importance of having a plan in your business.
>>Creating a business plan outline to know of your inner entrepreneurial spirit. I believe this is the uniqueness of individual proprietorship.
>>For an existing business, you have a business plan outline that will know if you are still doing great or need to innovate your products.
What if you wanted to grow it but never write your plan?
When the COVID-19 outbreak, everything changed. From Small, Medium, Enterprise (SME) up to multinational companies.
If you are doing the side hustle and your products greatly affect it, a tendency to stop your operation. But if you embrace and start to innovate, a business plan outline would be your hero.
Business Plan Outline
Below is the general business plan outline that you can use both in a digital and traditional format.
Write your business purpose.
Vision and Mission
What is your greatest why? Your reason to start a business?
Any experiences today you decided to start your side hustle?
Your vision ten years from now?
Do you have a mission, and why you choose the products or services?
These questions above are your guide of what you want to see yourself in the future.
Take the sample:
I love to write, and my passion is writing about personal finance and business. Someone appreciated it, so I decided to earn money from a blog.
I vision that I will build a training center to educate enthusiastic people in personal finance. I also vision that I will be a freelance writer in one of the business magazines. And that is why I continue to write my blogging career.
In your business plan outline, you have to include your business goals as your guide to achieve them.
It has three categories, long-term, medium, and short-term goals.
You have to break from yearly, monthly, weekly, and daily activities.
To track your progress, you have to assess it, which depends on your weekly and monthly activities. The importance is it will guide you to where you are right now. It will conclude if you are aggressive in your actions or conservative to your result.
Know your Products
Products can be items or services that are ready for sale. An item is a tangible item that can be touched and displayed at the store. An example is your clothes, bags, and displays at the grocery store. While the services are freelancer, legal, bookkeeper, and medical practitioner.
A service is intangible that render their expertise for the benefit of their client. An example is an accountant, doctor, and freelancer.
Many items and services you can offer to your clients.
If you do not know what you like to offer, below are the suggestions that will guide you to decide.
What are your hobbies that will turn into passion?
I love reading books, and it is my passion to write on my blog.
I love cooking. It is my stress reliever to bake cookies.
What are your business skills that can be offered to your client?
Traits of an entrepreneur that you have right now and needs to improve
List your strength that will benefit for your business.
Your weakness that you want to improve into strength
Do you have working experiences that you can think of benefit from the customers?
A lot of business skill you can list and to understand better, there are 4 categories:
Finance – you have the accounting knowledge and how to write a simple Financial Statement
Management – even if you are on a side hustle and want to grow it, learn how to manage your operations, and be an effective leader.
Communication – Both oral and written, you know how to communicate well because this will cause growing or losing your sales. An effective negotiation to win the hearts of a client.
And of course, there are technical and soft skills that depend on your work experience, knowledge-based, and your characteristics towards your common goal.
Technical skills are your professional skill like bookkeeping, data analyst, and medical practitioner. On the other hand, soft skills are managing your work and solving the problems of your operations. Sample are team-building, time management, and persuasion.
Marketing: Know your target market
Know you already see yourself in business, it is time to know who your market is.
This business plan outline includes your customer profile, generation, gender, demographics, and taste.
To know your market, make sure to write your mission statement. This will help with what customers you want.
Demographics – from the smallest town, every community has different likes from basic needs. If your community loves saving money, then expect more banks in your area. Then another community prefers food tripping than savings, then expect more restaurants to open than banks.
Gender and generation are important in your market strategy because of different personalities, values, and views.
In my finance and business blog, I prefer both males and females. For me, starting a business today is not for males alone. More women, especially the mommy, start a side hustle to take care of their children. I also prefer the Millenials (25 – 30) and gen z (college level to fresh graduates) because they embrace the technology.
How to sell your products to your target market.
This will be the highlight of your business plan outline. Knowing all your mission and to whom you sell but taking profit is challenging for new entrepreneurs.
That is why it is good to know yourself as an entrepreneur. Risk towards the unavoided situation.
Cash is a lifeblood of a business, so to make a profit, you need to project how much profit you will earn in the future.
Preparing your financial forecast helps you how much you will take a cash shortage. This is while building your brand in digital form and the trust of your customers.
In starting a business, you expect to cash out and almost 50% loss.
Let’s say your total capital is P100,000 and the revolving fund is P20,000. If your project loses P50,000, then you have at least P200,000 investments.
Now you know how much money you need, the next is how long to return your investment. This really depends on your risk to achieve it.
In your financial projections, it includes your profit-and-loss statement, cash flow statement, and balance sheet.