Here's a guide to writing an informal business plan. The key is to make it "Yours" through self evaluation and forming realistic goals and objectives.
We all informally do the task of business planning, whether in the shower thinking about how to get better clients, more satisfying work, or while sitting in traffic, or perhaps especially when you are paying bills, and trying to manage your cash flow. These are all informal forms of planning. It's the mental activity you engage in that tries to get you and your business from here…to there. This exercise will formalize this process and hopefully provide you with a concrete blueprint for the next year.
Ideally, this process should be revisited in a formal way each year or so. Take the extra step of writing this plan down in some detail. It makes a huge difference in realizing your goals.
General considerations
Start with the facts. Jot down everything important you can think about your business, present and future. Where has your work come from to this date? Who are you competing against (specifically). What are their strengths and weaknesses? What is your realistic potential compared to the present level of activity? Are you profitable? What problems and opportunities to you predict in the near future?
Identify Goals. Now that you’ve considered reality (above) consider your practical options and alternatives for growth, or greater prosperity. List some business changes/options for you with the greatest potential. Try to be specific.
Examples: I want to expand my business base from 3 to 5 dependable clients, or increase the number of publishing jobs by 25%; or decrease the number of jobs under $300 to no more than 1 per month. I want to show a $5,000 profit for 2011.
Rough-out strategies. Now you can take the goals you have set down and put your thoughts next to them on what it would take to make them come true. Eliminate those that are obviously not feasible. (I want to be the CEO of Pixar) settling on six or fewer that have a decent chance of success.
Examples: To expand my client base, I will make one new contact per week. In order to get more publishing jobs, I will write and develop a children’s story and produce a mock-up to show or I will produce 5 direct mail promotion pieces with a children’s publishing image, buy the NYC children’s publishing list. In order to show a higher profit, I will counter offer every job offer that comes in by a 10% increase.
Specific Considerations
Now you can modify the above general considerations with those things that define your unique talent, style, experience and client service. This begins to define your signature.
What are your strengths, what is it that distinguishes your talent?
Example: I am great at rendering, or portraits, or I have a very unique style, or my drawing ability is strong, I conceptualize unique ideas easily.
What is the extent of your business skills and experience?
Example: Unusual speed, I am obsessive about details, I have state of the art software, I have experience in editorial…
Where does your unique combination of talent, skill, and experience best fit? Example: I have worked in editorial for 2 years with good success, I have great animation skills, I should apply for studio jobs; My internship was with a design firm, I could use that experience to apply to other design companies.
Your uniqueness might best fit with your current mix of work, so you should concentrate on getting more of the same mix of work.
You are now ready to start writing the plan.
A Basic Plan
Even if you a one-person operation, you are still running a business and must approach your task as such in order to succeed. Just like a large business you will benefit greatly from an objective view of the market, a set of clear goals, and a precise strategy for obtaining them. The plan itself may not be as important as the thought that goes into it. No one may ever see it, it is for your use, but it is an essential exercise. What’s important is what goes into your plan and what it helps you accomplish.
The easiest way to do a basic business plan the first time is to think of writing a set of “New Year’s Resolutions” for your business. After you have considered all of the previous issues discussed above, write down about six (6) specific goals for the following year. Develop a paragraph about each goal. Include these five essential elements in each paragraph:
1) Exactly what you want to accomplish
2) Why it is important
3) How you propose to accomplish it
4) When is the best time to do it
5) The response you can anticipate.
Now arrange these paragraphs in chronological order. If the time ever comes when you would need a more formalized plan, this basic plan could be your foundation. Keep the plan where you can see it from time to time. Evaluate how you are doing. It should be an active document, constantly modified.
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