Writing a Business Plan

In this lesson, we will be covering a series of topics important to establishing your online Astrology business.  Building your business online is much more than just having a website. You need to have a plan that talks about your customers, what you’re going to offer them, the price you’re going to sell at as well as the promotion you need to do to get customers through your doors.  By the end of this lesson, you should be able to explain your comprehensive business plan to understand where your revenues (your income) is coming from, and what money needs to be spent in order for you to do business.

Why is this important?  It ensures that when you start operating, you have enough income to pay your expenses and your tax, as well as yourself.

What is a Business Plan?

A business plan is a written document that describes in detail how a business—usually a startup business —defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.

Business plans can be useful documents for attracting investment (for example startup funding to transition into a business)  before a company has established a proven track record. Most importantly, they are a good way to ensure that you keep yourself on target as your business progresses.

They are especially useful for people starting a new business.  Ideally, your business plan should be reviewed and updated periodically to see if you have met your goals, or if your goals have changed and evolved from what you thought they would be.

If you are an existing brick-and-mortar business that is changing direction towards online, a business can be helpful to assist you to move in that new strategic direction.

Operating without a business plan is not a good idea. In fact, very few companies are able to last very long without one. There are definitely more benefits to creating and sticking to a good business plan—including being able to think through ideas without putting too much money into them and, ultimately, losing in the end.

Your business plan should outline all the projected costs and possible pitfalls of each decision the company will make. Business plans, even among competitors in the same industry, are rarely identical, but they all tend to have the same basic elements, including an executive summary of the business and a detailed description of the business, its services, and its products. It will also outline clearly how the business intends to achieve its goals.

The plan should include at least an overview of the industry you are operating in and how it will distinguish itself from your potential competitors.

Business plans are designed to help companies identify their objectives and remain on track. They can help you start and manage the company, and to help you grow after you’re through the startup phase.

There are two different types of Business Plans

There are no right or wrong business plans, but what is produced can fall into two broad categories:  traditional or lean startup:

Traditional Business Plans – are the most common, and have more detail in each section and take longer to finalise. The advantage though is that what you come up with is a thorough plan.  If you understand the type of business you plan to offer, then you should probably bite the bullet and go for this type of plan.

Lean Startup Business Plans – are typically shorter and focus on key elements. They aren’t common in business generally because they are generally a summary on a page, and contain very little detail.  This lack of detail makes it easier for startup companies to pivot and change depending on what they find after starting up, however they tend to lack the detail to allow them to remain accountable to the goals they set for themselves.

The hidden benefit of a business plan is structure.  Structure helps focus you when you have a whole heap of time and a lot of competing priorities. This happens a lot during the start-up phase of a business.  A plan will allow you to focus on those things that are most critical to your business’s success.  Without a plan what tends to happen is that people procrastinate on the things that are hard, and make themselves busy on the things they enjoy.  While this may feel like you are doing a good job, you could be neglecting important blindspots that are essential to your long-term success.

Summary

• A business plan is a written document describing a company’s core business activities, objectives, and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• Businesses may come up with a lengthier traditional business plan or a shorter lean startup business plan.
• Good business plans should include an executive summary, products and services, marketing strategy and analysis, financial planning, and a budget.