If you own a new business or are just starting one, you would have probably been told that you need a business plan. While this is essential, most business plan templates require a time-consuming, multi-page document to put together. Time you could actually spend working on your business. And most of the time, the end result is a collection of theoretical details that most business owners hardly ever look at again.
So here are seven steps to creating a one-page business plan that only requires you to spend time on the really important aspects of your business.
STEP 1: DECIDE HOW YOU WANT YOUR FUTURE TO BE
What do you want your business to look like in 12 months? What annual income do you need to earn? Do you want a 6-figure business, a business that will eventually replace your income, or a part-time business?
This step is to create and write a vision that is authentic to you. One that articulates your true ambitions, desires, and purpose. It’s not about what you think you should want. Keep it simple, visualize freely and write your vision in the present tense as if you were already living it.
STEP 2: DECIDE YOUR DESIRED ANNUAL REVENUE GOAL
What would you like to earn in a year and how many customers would you like to see during that time period? Then work backwards to calculate your hourly value.
Let’s say your annual income goal is $ 100,000 and you would like to see 20 clients a week for one hour each. Your formula should look like this:
20 clients x 52 weeks = 1,040 clients per year
$ 100,000 ÷ 1,040 = $ 96 per hour (this figure will increase when any non-income earning time is allocated, such as annual leave)
If you make or sell a product, find out how many products must be sold and how much time must be spent to achieve the same results.
Then do a reality check. Based on the calculations above, ask yourself if you are prepared to work that many hours or weeks in a year. Be realistic and don’t forget to schedule recreation or vacation time.
Suppose you now decide that you only want to see four clients a day for four days a week for one hour each in order to have four weeks of annual leave. Your formula would look like this:
$ 100,000 ÷ 48 workweeks = $ 2,083
$ 2083 ÷ 16 clients per week = $ 130
This shows that your annual revenue goal of $ 100,000 can still be achieved if you rework your fee structure or pricing strategy.
STEP 3: DECIDE ON YOUR SINGLE POINT OF SALE
It is important to communicate to your potential customer why they would want to choose you over your competitors. They must be able to clearly see a non-monetary difference, otherwise they will make a decision based on price. In other words, what is your unique selling point or USP? This could range from a specialized service you offer or the scope of your services to your brand or the strength of your credibility.
STEP 4: IDENTIFY THE STRATEGIES THAT WILL HELP YOU REACH YOUR GOAL
Move your focus from short-term goals to a strategic vision that allows you to choose and correct your course direction with ease. As long as you are clear about your purpose and future (Step 1), you can write a solid list of strategies.
STEP 5: IDENTIFY WHAT YOU NEED TO STOP DOING
What activities are a waste of time or energy and are out of line with your new strategy? Perhaps these are certain administrative tasks, which can be assigned to an assistant whose hourly value will be lower than yours. That will free you up to meet customers. By identifying what you need to stop doing, you will also become clearer about the strategies you need to push forward.
STEP 6: EACH NEW HOMEWORK OR ACTIVITY QUESTION
Before starting any new task or activity, ask yourself this question: Does this advance my business or is it a distraction? Very often we hear about a new marketing strategy that someone else has embarked on and we get distracted from our own vision, strategies, and plans.
STEP 7: PERFORM A QUARTERLY REVIEW
Review the first six steps each quarter to make sure you are on track and to assess whether each strategy is working as planned. A quarterly review allows you to catch anything that is not working early on and make a decision one way or another.
Remember also that your business plan is a guide. It is not set in stone. Circumstances and priorities change over time, and periodically reviewing your plan will help you make the necessary adjustments to keep your business on track.