S.M.A.R.T. Business Plan

What is a Business Plan?
 
I have noted below the “formal” or authorized definition but for the purposes of putting a plan together for your unique online business I have simplified it below. You definitely need to know what is a business plan and develop one for your own business concept. But let’s not complicate it!
 
A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals.
The business goals being attempted may be for-profit or non-profit. For-profit business plans typically focus on financial goals. Non-profit and government agency business plans tend to focus on service goals, although non-profits may also focus on maximizing profit. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan having changes in perception and branding as its primary goals is called a marketing plan.
Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals.
Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization.
 
Now, here is the simplified version we can all start using today. Our plan needs to be S.M.A.R.T. (Specific, Measurable, Attainable, Realistic, Timely) with goals that are clear. And we need to keep it somewhat simple to start with plenty of room for flexibility.
 
At the very least Your “What is a business plan” needs to:

• Describe the product or service and why it is of value to the customer
• Define your target market
• Describe the marketing plan (from lead generation to product fulfillment)*
• Describe the financial support (the cash required to get it running, make it operational, draw an income for the owners and ultimately be reproducible*

 
Once you have these areas clarified and clear enough to explain to someone else then you essentially have what you need to get started. Yes, there are more details as you should create a cash flow statement, do a pro-forma profit and loss statement but if you are starting out as one or two people what’s listed above will get you rolling.