business planning - products and services

saturday's child works hard for a living....

now that i'm done the crazy bliss business plan for 2009, it's time to get back to work to implement said plan!  i've got some blog catching up to do so let's get to it!

a couple of saturdays ago, we discussed starting the business plan with business overviews.  

today we'll talk about our products and services and how we can start to think about standing out from the crowd.

this is a very straightforward section of the plan - or at least should be if you know what you're selling.  this section will inform the reader exactly what the products and services are that your company provides.

key points to include in this section are:

• are you the manufacturer 
• what stage of development is your product/service in
• is it a new idea or an improved established idea
• what additional customer service will accompany the product/service
• are your prices within, above or below market value
• what is your after sale customer support
• will you provide guarantees or warranties
• discuss future developments/plans for products/services
• discuss any copyright issues (artists hold the copyrights in most cases)

begin the section by discussing the general features of your product/service and what stage of development you are in.  below that paragraph, list the individual products and or services as the example below:

product: list the details of your individual product here 

(eg. crazy bliss offers a variety of styles of greeting cards suitable for framing or sending)

unique feature: this is what makes your product different from the competition - this is pretty easy for artists as our work is unique in nature 

(eg. each crazy bliss card includes the "story" of each image on the back of each car for the recipient to gain further enjoyment from the image and message the sender contributes)

benefit: this is the emotional reason people shop.  this can be a tricky one to wrap your head around but is the most important to know for advertising purposes...  

(eg. able to express themselves uniquely and having the choice to send to a loved one or frame, clients feel closer to their loved ones adding their personal handwritten touch on a tangible greeting)

cost: this is the retail cost to the client

after you list all of the products in one group, do the same for any services you may provide as well following the same structure above.   i also included my future products that i'd like to develop within the year.  this gives the reader even more idea of where your company is going - even if the only reader is you!

next, list your additional customer service, after sale strategy, payment options and briefly discuss how you compare to the competition (you'll have a chance to discuss the competition in detail later)

lastly, make references to any product samples you'll include in the appendix at the very end of the whole document.

then this section is done!  that was easy!

next, the dreaded market analysis!  never fear though, there are some tricks and fun things to make it less painful!

we have winners!

saturday's child works hard for a living...

i'm taking a break from posts about writing your business plan to share two bits of exciting news with you...  

winner #1 is me!  as you probably know, i've been working hard at writing the crazy bliss business plan for what seems to be ages.  well, guess what?  it's done - yay!  with that ready to go, it was time to move on to the next big step. off i went to city hall, the hub for all business-related services.  why, you ask? to register my business.  that's right...crazy bliss is now a registered company with a master business license.  sharing the excitement with you, my on-line friends, makes the experience that much sweeter.  

************************************************************

the next winner is one you've been waiting for from ...and the survey says!  first, though, i want to say a great big thank you to everyone who completed the survey.  you helped me so much and i really appreciate it. those of you who opted in and left contact information will soon receive a little gift in the mail. thank you, again.  

winner #2 receives the the survey's grand prize.  (yes, i am drawing out the suspense to tease you.) the prize is a 5x7 original custom crazy bliss painting. 

...and the winner is (drum roll, please)...

amanda fall from south dakota!

amanda is also known as persistant green.  she is an artist, writer, thinker, dreamer and a wanderer.  (i wonder where her dreams will have her wandering next.)  Amanda has a website i think you will enjoy looking at: http://persistentgreen.blogspot.com/

congratulations, amanda!  i will be in touch with you via email to let you know how to claim your prize.  in the meantime, you might want to visit my etsy shop for ideas on what you would like me to paint for you.

thanks again to everyone who completed the survey. ♥♥♥

starting your business plan

saturday's child works hard for a living...

last saturday we discussed getting ready to write your business plan, gathering information, setting goals etc. and today, we'll get started!

the outline of a business plan looks roughly like this:

• executive summary
• business overview
• products and services
• market analysis
• marketing strategies
• operational plan 
• financial plan
• appendixes 

executive summary

most people do this last because it's an overview of the whole plan.  a few people use it as an outline to get their thoughts out but you'll have to clean it up at the end anyhow to ensure it matches all of the points you've made throughout the plan.

so, that leaves us with the business overview to start with.

* it's important to remember as you're writing these sections, who your audience is.  this plan is as much for bankers and lawyers as it is for you to refer to *

** keep in mind also that business plans can be revised and rewritten at any stage of your business **

business overview

this section is pretty easy if you have a clear vision of your company.

1. business history

• why you started this business
  
• give the history to date of the company (if you're just beginning, your history will be short)
  

2. company profile

• state the legal structure and who the owners are of the business (proprietorship, corporation etc.)
  
• what is the name of the business and the briefly list the service or products you'll provide
  
• is it a wholesale or retail company
  
• who is your support team (list bankers, accountants, mentors and other human resources)
  

3. vision and mission statements

do a bit of research and google vision statements and mission statements of strong companies.  you'll see that they provide the following:

• core company values
  
• what the company does and why they exist
  
• what the company beliefs are
  
• what opportunities the company addresses
  

4. objectives

in this section you'll outline exactly what you'd like to accomplish in the 1st, 2nd, and 3rd year.  going beyond the 3rd year when you're just starting out is a waste in my opinion as you'll likely change direction within that time.

objectives are the large business and financial goals you have.  your dreams for your company.  make sure they're realistic and achievable.

you'll be discussing briefly media and advertising strategies, how many sales you forecast, your financial growth plan etc.

this is a synopsis of what you'll be active doing in the next couple of years.  in the sections to follow you'll be adding details to these goals to ensure they can be carried out.

most business plans are written in the third person and are very formal but when we're artists, we can get away with a little bit of creativity.  just make sure that if you need to take your plan to the bank it's professional enough to be taken seriously.  otherwise, have fun and make your business plan your own.  it is, after all, your very own handmade map! 

 

next week we'll discuss writing about our products and services and how we can stand out from the crowd!

i'll say working hard for a living!

it's saturday!  while most normal people have saturdays off, entrepreneurs know there is no such thing as a day off!  anyways, who wants to be normal?!

so let's get down to business...  

if you're already in business or just starting out, you'll have heard chatter about how important business plans are.  you'll likely have heard the comparison to a road map.  it's a good one that's why it's used so often.

who needs a business plan?

• short answer: everyone wanting to succeed in business! *
  
• long answer: everyone who wants to reach their goals on a reasonable timeline and budget and measures business success by how large the profit margin is. *

* financial institutes require a formal business plan before they invest in your company

the plan really is like a road map.  i live in canada and if i wanted to get to florida, i could probably do it without a map but i would spend a lot on gas, probably have to ask a lot of people for directions and it would take a lot longer to get there.  that actually sounds like a nice vacation to me and i'd be happy to run a business like that but it's much less secure and the bank doesn't want my illustrations as payment for the mortgage!  i don't understand why!

with a road map, i could find the most efficient way to get there saving on gas, hassle and time (and the bank is happier).  this is what a business plan does for the business.  it shows you clearly the route you should take... now the downside of this realization is that you are the one who has to draw the map!  the upside is that you can draw new roads and find secret bridges too!

getting started

you'll need to have a clear vision and some solid goals before you start.  admittedly writing the business plan is daunting and i found making myself notes in a journal helped a lot.  once i started writing i had to refer to my notes to remember what the heck i was doing!  

start by keeping these questions in mind:

• why did i choose this business?
• what do i want to accomplish with my business in the first 2 years?
• what opportunities or needs can my company address?
• who is drawn to my company?  what makes them tick?
• who are my competitors and what makes me different from them?
• who do i need to include to make my vision work?
• is my industry in an upswing or downswing? (gaining in popularity or fading out)
• where can i advertise to reach my customers?
• how will i pay for all of this?

the business plan puts a lot into perspective when it's all on paper.  this is the most valuable part of this tool in my opinion.  once you've completed it, you'll see exactly where you stand within the competition, how you differ, who purchases from you, how much you'll have to sell to break even, what your best advertising options are and more.  

while researching and writing your business plan, you'll become hyper aware of your competition and target market.  don't let your findings discourage you - use this to your advantage!  stepping out of our comfort zones lets us see missed opportunities left by others content in their comfort zone.  keep moving forward and never get too comfy!

in the coming weeks we'll break down each section and i'll share my results and journey with you.  that's why i've been a bit behind in blogging... i'm about 3/4 of the way through and it's been tough but a great learning experience.  i hope to benefit grately from it!