If you write one of these detailed business plans (as I have) it can quickly exceed 100 pages. Its a great document if your new business is capital intensive and you need to raise money from a venture capitalist, bank or investors. In fact, they will likely require it.
The internet turns this all on its head. Startup costs are minimal and the cost of failure is also low. I can often build a web site, offer my product and test market it to determine if it is viable or not in the same time it takes you to write your business plan. Time often drives an online business more than money. So here's how to outline your business in an hour or two:
What are you passionate about? Don't waste time in a business or niche you don't care about. Building a new business is hard work, and you will quickly burn out unless you have an absolute passion for the business you are starting..
Who is the target market for your product or service and how will you reach them? This matters. You don't want to market your product to everyone when it really is only of interest to males between 20-25 who regularly snowboard. You need a way to reach out and develop a relationship with your customers. Picking a narrow niche is almost always better than a broad one.
What problem are you going to solve for them? I always start with problems here - as people are ultimately willing to pay to solve their problems or alleviate their fears. Look for a problem that you can solve within your niche.
Do you have some keywords we can target online that are moderate in traffic but low in competition? Its hard getting attention in a web with billions of web pages. Don't target big keywords you will never dominate.
Who are your competitors and what is your competitive advantage? Some markets, such as household computers, have razor thin margins and lots of competition. Its unlikely you outsell Dell or HP in the low end computer market. What can you do better than anyone else? What do you offer that others don't?
How will you make money? Can you grow? Many people price their product too low up front - adding up the price of their raw materials but not their time. You need to consider how you will grow your business. You may be able to make the first 10 widgets in your garage, but what if you suddenly sell 100 or 1000 of them?
If you have taken a few hours to get the answers to these questions right you will lay a solid foundation for your new business. Also you may just beat your competitor to market with your unique idea. So toss out the glossy business plan - find your passion, solve someone's problem and get started now! You'll learn more by doing than you could possibly imagine!
Dr. Brad Smith hosts the Online Business Zen podcast on iTunes, and blog at OnlineBusinessZen.com. He is a full time entrepreneur with a successful internet software business, and is focused now on helping others start, build and market their internet businesses without the get-rich-quick hype. Article Source: https://EzineArticles.com/expert/Bradley_J_Smith/765568
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