How to write an intentional business plan
All great businesses start with a plan. Regardless of whether you’re an aspiring entrepreneur or you’ve been in business for a while, this blog post will help you understand why a business plan is important and how to develop one intentionally.
What is a business plan?
Think of your business plan as a living and breathing document that will guide you in developing, launching, and growing your business. Your business plan will include your goals for the future along with specific strategies to help you achieve them. It will also act as a repository of information, holding all of your insights and knowledge about your business, your customers, your competitors, your industry, etc.
While more extensive plans may be required for bank loans or bringing on an investor, you don’t need something overly complicated as you look to get started. In fact, it’s better to keep things simple yet intentional!
Why write an intentional business plan?
Instead of writing a business plan because you think you “should,” it’s best to think about your plan as the ultimate source of truth when it comes to your business and the greater vision you want to achieve. An intentional business plan will ensure your decisions are aligned with your values, you’re thinking in terms of the present and the future, and you have what you need to make your big dreams a reality.
Below are a series of items to consider when it comes to crafting an intentional plan for your business. Use the questions and prompts in each section to help guide your thinking, and bookmark this tab so you can return to it again and again.
What to consider when you write an intentional business plan
What’s your vision?
If nothing were off limits, what’s the big dream for your business? If you close your eyes and imagine your most ideal circumstance as an entrepreneur, what do you see? Think about how you want to live and work, the impact you want to have on the world, and anything else that comes to mind regarding your business.
What are your values?
Brainstorm a list of things that are important to you as an entrepreneur. Once you have your list, go back and circle the terms and concepts that resonate with you the most. Think about how these values will come to life in your business and how they’ll influence your decisions. The more specific you can be, the better!
What do you want to offer?
Now that you have a clear vision for your life and business, your next step is to define how you’ll create value for your future customers or clients. When it comes to the product or service you’d like to create, it’s important to think about the problem you solve or the need you serve. What challenge or pain point will your business help someone overcome? How will your business benefit someone both practically and emotionally?
Who are your ideal customers or clients?
Before promoting and selling your products or services, it’s essential to clarify who your ideal customers or clients will be. The more specific, the better! Think about the type of person who will be a raving fan of what you do. What do they care about? What matters to them in relation to your product or service? How might you reach them (think about the kinds of media they consume, how they stay informed, where they live and work, etc)?
Who are your competitors?
As you look to get your business idea up and running, it’s important to learn who your competitors are and how they provide value to your ideal customers or clients. What kinds of products or services do your competitors sell? What’s their brand image like? What could they be doing better (i.e., what are the gaps you could fill)? It can take time to research and understand your competitors, but knowing your business landscape is essential to determine how you’ll stand out and create something unique.
How will you test your business idea?
Early on in your entrepreneurial journey, you’ll want to find ways to test your assumptions and build momentum around your idea. Can you create a simple prototype or sample of your product using things around the house? Do you need to develop a short survey to learn more about your ideal customers and clients? Can you write an outline for your future service offering and run a trial with a friend? Remember to keep things simple and enjoy the process of testing and creating.
How will you sell your product or provide your service?
For example, will you sell products in your e-commerce store? Or will you utilize a digital marketplace like Etsy or Amazon? Will you provide your services via an online course or will you meet with clients and work with them in person or via video software? Overall, it’s important to decide how people will pay for your product or service and how you’ll deliver it to them. Don’t overcomplicate it.
What are your costs? How will you fund your business?
In the early days of getting started with a business idea, you’ll want to begin thinking about how much it will cost to make your product or provide your service in addition to what expenses will be required to launch and sustain your business over time. You can start by simply brainstorming potential expenses and researching what it costs to build a similar business. You’ll also want to consider how you’ll fund your business. Are there funding opportunities available to you? Do you have savings or will you take out a loan? There can be a lot to consider when it comes to the financial aspects of your business, and a financial expert or advisor can help you understand your costs in greater detail.
How will you price your products or services?
There are a number of factors to consider when establishing your prices. For example, how much do you think your ideal customers or clients would be willing to pay, and can you test your assumption? What price point will ensure you can cover your expenses and allow you to be profitable? What will your pricing strategy say about your brand image? For example, if your prices are higher relative to your competitors this could position you as a more premium, higher-quality brand.
How will you market your business?
As you begin to think about how you’ll market your business, it’s important to understand how people currently learn about products and services like yours in addition to where they spend most of their time and get their information (i.e., on social media, listening to specific podcasts, reading the newspaper, etc). How will you plan to get the word out about your business in the early days? What marketing channels will you use to reach your ideal customers or clients? What do people need to understand and know about your business in order to make a purchase?
How will you protect your business and prepare for the unexpected?
Thinking about the legal aspects of your business early on can save you a lot of time, resources, and potential risk down the road. Here are a few things to think about as you look to get up and running. What should the legal structure of your business be (e.g., corporation, partnership, sole proprietorship, etc)? Do you need contracts and agreements for your business (e.g., client service agreements, contractor agreements, non-disclosure agreements, etc)? Do you need a trademark or copyright? Do you need insurance for your business? A lawyer can help you understand the best ways to protect your business and intellectual property.
What’s your 30-day action plan?
Now that you’ve drafted an initial plan for your business, it’s time to create momentum around your idea! What will success look and feel like 30 days from now? What action steps will you need to take to guarantee success? What resources or support systems will be required? Can you set a deadline for each of the action steps you listed?
Entrepreneurship is a delicate balance of planning and execution, and while you want to have a solid plan before you begin, it’s equally as important to create momentum and excitement in your business by taking action. If you’re in the early stages of starting and growing your business, Bedside Business Plan will help you create clarity around your entrepreneurial path and take meaningful steps towards your big dreams.
