Is a business plan needed to start an online business? We get this question from time to time. Some of our members have mentioned that other sites tell them to write up a business plan. But they don’t understand why we haven’t really talked about it. So, let’s talk about it!
Is it required to write a business plan?
Let’s start with what a business plan actually is. A business plan, is a formal statement about your new business. What your goals are, reasons why they are attainable, and your plans for reaching those goals. It serves as a roadmap for your business that you can follow to help you navigate your business operations.
To get started with your business plan, you ask yourself specific questions like:
Why do you want to start a business?
Why do you want to sell online?
What do you want to sell online?
How do you plan on selling those products?
Don’t ask your friends and family to answer these questions. They can only be answered by you!
Write answers for each of those questions, and then start digging into the details.
Answer Examples:
For example, the answer to your first question might be: “I want to make money.” But take that and add more details once you think about it. You could have a fantastic idea to sell specific products to a demographic of customers that’s missing from the market. So you talk about your idea and why you think it’s a good idea.
The last question, “how do you plan on selling those products”? This is where you would list out your marketing strategy and the services you plan on using to accomplish that. Such as if you plan on selling on your own website. Or if you are going to use social media to promote your store, or spend money on Ads.
You would also research all costs to get an idea on how much your business would cost per month. Put together all the fees associated with selling on your own site. Hosting, transaction fees, or if you sell on eBay, what is the cost associated with that? If you need legitimate wholesale suppliers then you would also list out WorldwideBrands.com and the cost associated with our service. Listing your costs is important. It will give you an idea of what you will need to spend per month to see if your ideas are feasible with your current budget.
As you write up your business plan, you research at the same time so you can truly be detailed with your answers. So a business plan can be something that takes quite some time to create, and of course, you can modify it at any time.
Now, let’s get to the answer, is it necessary?
If you plan on having a business partner, or want to take on investors for your business or even a business bank loan. A well-thought-out business plan will let all parties know what they should expect with your business and help them to determine if they want to work with you or not. So is this scenario, it’s a necessity.
If you do not have plans on taking on a partner, inventors or a loan, it’s not. However, a business plan can also be used internally by you, and anyone that you decide to work with, for YOU & them to understand what your goals are and how you plan to reach them. Think of it as a written detailed vision board.
So is a business plan a necessity? If you are not going to seek outside monetary help, then no.
Should I write one anyway? If you need something to follow to make sure you don’t forget anything, then sure, you can write it up grocery list style, or go through the process of writing a detailed one to follow like a detailed business blueprint.