"Your One-Hour Business Plan... The Smart Entrepreneurs Way To Plan For Business Success!"

From: Scott Wilson

The Entrepreneurs E-Cash Report

Helping YOU Harness The Power Of Direct Response Marketing

Dear Friend,

When you do a business plan, even an Internet Business one, it’s important to know what you are getting yourself into!

That's right... before you put all your money and time into something that originally sounds like a good idea because it could turn into a nightmare if you go in unprepared.

One of the easiest ways to determine the facts is the SWOT analysis.

Now before you run for the hills!

I want you to know that I have made really quick and easy for you here in the special report to complete a SWOT analysis.

You see performing a SWOT analysis allows you to design better business strategies, make better Offline & Online marketing plans, make better short and long term decisions, AND ultimately, help you to understand the new area you’re moving into.

So what is a SWOT analysis?

SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

A SWOT analysis will help you to get to know yourself better, help you find out what you do know, and more importantly, what you don’t know, so you can get help in those areas.

A Strength is anything you have going for you that’ll assist you in achieving your goals. In other words, what are all the strong points of your business, your product and yourself?

A Weakness is a limitation, fault, or defect in the business, product, or yourself, that’ll prevent it from achieving its overall outcomes.

An Opportunity is any favorable situation in the business’s current industry. It’s usually a trend or change of some kind, or an overlooked need, resulting in a higher demand for a product or service. This could be a chance to grow the business by meeting the new demand.

A Threat is any unfavorable situation that could slow down or interrupt your growth. The threat may be a barrier, a constraint, or anything external that might cause problems, or prevent you from achieving your outcomes.

In general, a good strategy is to take advantage of the opportunities you identified, and focus on your strength to avoid any threats and weaknesses.

In other words... be aware of what’s happening in the marketplace and what people are looking for.

The first part of any SWOT is to collect all the info you can on the product, your market place and the customers.

Things like market trends, the competition, and marketing, financial resources basically anything that could have an impact on your business.

Examples of strengths: strong reputation, experience, good product or idea, or even a new way of manufacturing, even trained & motivated staff.

Examples of weaknesses: bad customer service, late deliveries, unreliable suppliers, limited products/service. Bad website, low financial funds. Etc

Examples of opportunities: emerging trend for a particular service or product, closing down of a competitor’s business, change of affiliate commissions.

Examples of threats: new competitors setting up on the Internet, a particular product or service becoming obsolete, cheaper products available.

The second part of a SWOT analysis is to evaluate the information to determine whether you have the strengths, weaknesses, opportunities, and identifies the threats for the business.

This can be done independently or by brainstorming in a group. It’s important to note that the facts will help you to organize a strategy, but it still comes down to you to implement it.

Strengths, Weaknesses, Opportunities and Threats

The importance of a SWOT analysis…

It helps you get to know the facts of your business really well.

Helps you to understand the changes you may need to make in the new business environment.

Helps you make strategic decisions on what your business should be doing to get you to where you want your business to be.

Shows you the areas of your business you want to strengthen, improve, grow and/or discard.

SWOT analysis is instrumental in forming your long-term business plan and how you can take it to the Internet.

SWOT analysis is also what financial institutions look for when you require their services, for example getting an online merchant facility.

Ok lets test your understanding....

Here’s a list of questions for you to ask yourself about how to know your business and get you started on thinking about the strengths, weaknesses, opportunities and threats facing your business.

Print off this page and fill in your information as you go!

What are the main strengths in my business?

________________________________________________________

Can those strengths potentially become weaknesses?

________________________________________________________

What do I need to know or do, to strengthen them?

__________________________________________________________

What are my main weaknesses?

________________________________________________________

Can those weaknesses become future strengths?

________________________________________________________

How do you improve on them?

________________________________________________________

What opportunities can I identify from the market place?

________________________________________________________

Can I capitalize on them? How?

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

What threats exist in the market place for my business?

________________________________________________________

Are there ways to reduce those threats?

________________________________________________________

Now you can create a business plan based on the outcomes of the SWOT analysis.

This is all about taking the first step to having a solid business plan. You'll find a list of headings to assist you in starting your business plan.

You’ll also find that many of the outcomes from your SWOT analysis will fit into the various sections and strategies you need to get started.

Executive Summary

History

Product or Service Description

Market Description

Market Strategy

Operations Plan

Progress Schedule

SWOT

Executive Summary

This is a very important part of the analysis as it briefly sets out the contents of your business plan.

You should be able to clearly describe your business, your products or services, your target markets, the market place climate, the key opportunities and challenges you face, and your long-term strategies.

Also understand the marketing and technical help required, the time frame in which you intend to achieve your goals, and last but not least, your key measurements of success.

Try to keep this summary to about three pages.

History

Include a brief description of how, when, and by whom the business was started; its achievements, setbacks and current status.

If this is a completely new business then list your experience and background to help establish your positive attributes for the business.

The next two sections require you to list the facts from your SWOT analysis. Having gone through the exercise earlier, you are now organizing your facts into a logical structure.

Product or service description (strengths & weaknesses of the business)

Describe the need for the product or service in your target market, how it’ll make a difference, the benefits of it, what will make the customer buy it, and any other advantages.

Expand on any exclusivity or uniqueness.

Market description and analysis (opportunities and threats for and to the business)

Prepare a customer profile. Describe what people or businesses form your market, where they can be found, why they would purchase from you, and whether it would appeal to single individuals or groups.

Prepare an industry profile. Discuss recent trends: past, present and future. Offer available data on competitor sales. Refer to trade associations, if relevant, or to the Bureau of Statistics.

Prepare a competitive profile. Stress advantages of price, quality, warranties, service and distribution. Include operational strengths and weaknesses.

Project potential market share, trends in sales and profitability. Check your facts wherever possible otherwise give it your best guess.

Based on the SWOT analysis, how are your strengths improved, your weaknesses strengthened, your opportunities capitalized, and your threats diminished or removed for the basis of your business strategy...

Marketing Strategy

Specify the business’ goals. How are they going to be achieved, and who will have responsibility?

Describe any planned online advertising and Internet marketing plans.

List everything you think you’ll need to get your business up and running including website, merchant facilities, etc

Describe the timing and sequence of the steps that’ll be taken to bring the business up to full speed. Take it month-by-month for the first year, thereafter, indicate the expected progress quarterly.

Ok let's test your understanding again... hey every little bit helps!

Use these questions to test your understanding of the elements of a business plan, and the purpose of the plan in helping you make decisions about your business.

Why am I in business?

________________________________________________________

What are the core service/product offerings of my business?

________________________________________________________

Which markets am I serving to get repeat business or referrals?

________________________________________________________

What area of service or production has the least complaints? Most complaints?

________________________________________________________

What growth areas or new products can I identify within my business?

________________________________________________________

What trends are developing in the market place that I can capitalize on?

________________________________________________________

What are my competitors doing?

________________________________________________________

What percentage market share do I hold versus what my top 3 competitors have?

________________________________________________________

How often will I talk to my clients and customers for feedback and continuous improvement?

________________________________________________________

SWOT Analysis

Define your strengths

List out what you feel are your top five (5) current business strengths.

1. _______________________________________

2. _______________________________________

3. _______________________________________

4. _______________________________________

5. _______________________________________

Define your weaknesses

List your top five current business weaknesses.

1. _______________________________________

2. _______________________________________

3. _______________________________________

4. _______________________________________

5. _______________________________________

Define your opportunities

List your top five current business opportunities.

1. _______________________________________

2. _______________________________________

3. _______________________________________

4. _______________________________________

5. _______________________________________

Define your threats

List your top five current business threats.

1. _______________________________________

2. _______________________________________

3. _______________________________________

4. _______________________________________

5.________________________________________

Business plan - Creating your business plan

Once the planning process is done, it’s important to take it to the next level of actually pulling facts into a business plan.

Despite a guideline provided in the previous section, many businesses are still unsure about how to actually START pulling a business plan together. So, I have provided you an outline for a business plan. Use this model as a guide to assist you when developing the business plan for your business.

Use the information that you found in the SWOT to create your 1-hour business plan. This is only a starting point and can be expanded as you go.

Description of the business

In this section, provide a detailed description of your business. An excellent question to ask yourself is, “What business am I in?”

In answering this question include your products, market and services as well as a thorough description of what makes your business unique.

The business description section is divided into three primary sections: Business description, product or service description, and location.

Business description - when describing your business, you should briefly explain:

Legalities including business structure: sole trader, partnership, and company. Outline the licenses or permits you might need.

Business type: wholesale/retail, Internet, manufacturing or service.

What your product or service is.

Is it a new independent business, a buy-out, an expansion, a franchise?

Also explain why your business will be profitable.

What are the growth opportunities?

Will franchising impact on growth opportunities?

What you have learned about your kind of business from outside sources (trade suppliers, industry associations, other, publications).

A cover sheet goes before the description. It includes the name, address and telephone of the business and the names of all principals.

In the description of your business, describe the unique aspects and how or why they will appeal to customers. Emphasize any special features you feel will appeal to customers and explain how and why these features are appealing.

“The description of your business should clearly identify your goals and objectives, and it should clarify why you are, or why you want to be, in an Internet business.”

Product/Service

Try to describe the benefits of your goods and services from your customer’s Perspective. Successful business owners know or at least have an idea, of what their customers want or expect from them. This type of anticipation can be helpful for beating the competition or retaining your competitiveness.

Describe:

What you are selling?

How your product or service will benefit the customer.

Which products/services are in demand; if there will be a steady cash flow.

What is different about the product or service your business is offering?

The Business Plan — The Marketing Plan

The key element of a successful marketing plan is to know your customers, their likes, dislikes, and expectations. By identifying these factors, you can develop a marketing strategy that’ll allow you to excite them and meet their needs.

Identify your customers by their age, sex, income, educational level and location. At first, target only those customers who are more likely to purchase your product or service.

As your customer base expands you may need to consider modifying the marketing plan to include other customers.

Develop a marketing plan for your business by answering these questions outlined below:

Who are your customers? Define your target market(s)

Are your markets growing? Steady? Declining?

Is your market share growing? Steady?

Are your markets large enough to expand?

How will you attract, hold, increase your market share?

How will you promote your website?

What pricing strategy have you devised?

Competition

It’s important to know your competitors.

Questions like these can help you:

Who are your five nearest direct competitors?

Who are your indirect competitors?

How are their businesses: Steady? Increasing? Decreasing?

What have you learned from their operations? From their advertising?

What are their strengths and weaknesses? (List 3 each)

How do their products or services differ from yours?

Start a file on each of your competitors.

Keep copies of their advertising and Promotional materials and their pricing strategy techniques. Review these files: Study the copy used in the advertising and promotional materials, and their sales strategy.

For example, is their copy short? Descriptive? Catchy? Or how much do they reduce prices for sales?

Using this technique can help you to understand your competitors better and know how they operate their businesses.

Pricing and sales

How you price your service or products will also impact onto your overall competitiveness. Get a feel for what your competitors are pricing and determine your USP to explain your point of difference.

It’s important to remember to add indirect costs, such as overheads, to your pricing strategy.

The Business Plan - The Financial Management Plan

Each year thousands of potentially successful businesses fail because of poor financial management. As a business owner, you’ll need to plan ahead to make sure your business can grow without running short of funds.

To effectively manage your finances, plan a sound, realistic budget by determining the startup costs and the amount needed to keep it operating.

The first step to building a sound financial plan is to work out a startup budget. Your start-up budget will usually include possible product development, design costs, and marketing strategies.

An operating budget is prepared when you are actually ready to open for business. The operating budget will reflect how you spend your money, the expenses you incur and how you’ll meet those expenses through income earned.

Your operating budget should include money to cover the first three, to six months of operation.

This financial section of your business plan should include any loan applications you have filled, balance sheets, break even points, budget to reflect your profit and loss statements as well as your cash flow statements.

Your financial advisor can assist you in developing this section:

Your plan should include an explanation of all projections. Unless you are thoroughly familiar with financial statements, get help in preparing cash flow and income statements and your balance sheet.

Your aim is not to become a financial wizard, but to understand the financials so you can manage your business costs. Your accountant or financial advisor can help you accomplish this goal.

Well Done You’ve Completed Your Business First Step to Success

You’re already ahead of the 95% of business’s who fail to plan and then wonder why they fail.

If you would like to send me a copy of your completed plan and I’ll see if I can help you in any way with it.

Send to scott@theentreprene