Dreaming is great, but it doesn’t get your home business off the ground. If you want to turn your business idea into reality, you need to start with a bit of business planning. While it may seem overwhelming to a new entrepreneur to create a plan for your business, it’s actually very simple. Here are the things you need to consider.
‘Value proposition’ is a fancy word for ‘what you’re offering.’ Businesses offer either products or services. First off, you need to decide what value you will be providing. One of the biggest factors for your business success will be whether you have determined a value proposition that people understand and want.
As you identify your value proposition, you have to determine who is going to buy your product or service. Who will benefit from and recognize the value that you offer. You can find out about your target market by hanging out in online forums related to your product. Get to know the people and understand what they want and need.
Your delivery model is primarily a framework for how you’re going to get your product or service to your target market. How are you going to deliver the goods? If you’re an offline business, your delivery system is often your store or office. Online, it is usually centered around a blog or website.
Your biggest challenge is determining your operating costs (which you don’t know yet) and pricing your product. You’ll need to make a huge list of everything you need to buy. This includes items for your office, software, web hosting and every other little expense.
Next, you’ll need to price your products. Again, this is tricky. Start by deciding how much of a profit you want to make on each unit sold. Add that to the basic cost of what you’re offering. If you’re offering a service, start by deciding how much you’d like to make per hour and set your price accordingly.
Price is directly related to the quality of the goods you’re offering, but it’s really up to your target market. One good way to find out whether the price is right is to put your product on the shelves at the price you want to sell it for, and then see if people buy. If they don’t, this tells you the price is too high.
Another good way to get ideas is to check out your competition. Look at websites or stores that are selling similar items and see what they’re charging.
Real businesses set real goals and this is really where business planning should start. These are specific targets that are measurable and realistic. Goals give you something to aim for and a sense of achievement when you’ve reached them. Set deadlines and monitor your progress. If you’re not experienced at goal setting, this is no problem. It’s a skill like any other and practice will perfect it.
Branding Your Business
Finally, you need to brand your business. It sounds complicated, but your brand is what sets you apart from your competition and makes you memorable. It tells people what makes you special and what results you provide. Brand image is often more important to customers than the actual goods and services offered.
To make your business a reality, you need to be organized and on top of everything. However, very few people are that organized when they first start out. It always takes some trial and error, and sometimes there are difficult lessons to be learned. Stick with your goals and stay positive, and you’ll learn the lessons you need to succeed with a little business planning assistance.