A Message from Penny Forward Founder and CEO Chris Peterson
Starting a business is a popular path for many people who are blind or have low vision to increase their income and pursue their passions. So, it’s no surprise that I often get requests to help people develop their business plans. Recently, while working with a client on her business plan, she asked me, “Do I need to wait until my plan is finished to get started?” That’s a tough question because there’s no simple answer.
If I had told her, “Yes, wait,” she might have lost her momentum and motivation. On the other hand, if I had said, “No, go ahead and start,” she could have made costly mistakes without a proper strategy. So, what’s the real answer? Here’s what I told her, and how you can use it to make better decisions, whether you’re starting a business or just navigating a major life change.
The Role of Planning in Business
Planning helps us strategize, prioritize, and address potential risks. While some people thrive without a detailed plan, others feel stuck until every aspect is mapped out. And then there’s a middle ground—people who are comfortable with a high-level plan and prefer to work out the details as they go.
If you’ve ever taken a personality test or problem-solving assessment, you might already know where you fall on this spectrum. If you haven’t, stick around to the end of this post for some resources to help you understand your problem-solving style.
Find Your Problem-Solving Style
Before jumping into business planning, it’s important to understand how you naturally approach problems. Your personality type can influence how detailed or flexible your plan needs to be. Some people love diving into the nitty-gritty details from the start, while others prefer to get things rolling and tweak their approach along the way. Knowing your style will help you develop and execute a business plan that works for you.
That said, there are certain components that every business plan should include, no matter what your style is. Let’s go over those now.
What Every Business Plan Should Have
1. Executive Summary
The executive summary is your chance to grab attention. This brief overview lets people know what your business is about and why it matters. Busy people might only read this part, so make it compelling enough that they want to read more.
2. Business Overview
This is where you dive into the details of your business. While the executive summary is a teaser, the business overview allows you to fully describe your idea, what you’re offering, and why it’s going to succeed.
3. History and Background
Sharing your personal story, the background of your business idea, and why you’re the right person to lead it is crucial. People don’t just invest in ideas; they invest in the person behind the idea. Think about the last time you heard a great pitch—did you believe the person pitching it had what it took to bring the idea to life?
4. Competitors
Very few businesses are truly “one of a kind.” Most of the time, you’ll be improving on an existing product or service. This section explains how your business is different and why people should come to you instead of your competitors. Are you faster? Cheaper? Offering better customer service or innovative features? You need to give people a clear reason to choose you.
5. Target Market
Knowing your customers is essential. What problems do they have, and how are you solving them? Your solution needs to align with what your customers care about. For example, a business professional likely isn’t going to be swayed by a pitch about a laptop’s video editing capabilities if what they need is better performance for spreadsheets and document editing.
6. Geography
Location matters, even for online businesses. Where you’re based can open up opportunities or create challenges. For example, if you run a restaurant in Denver, your target customers probably live nearby. If you’re in a low-income area, you’ll need to consider pricing carefully to attract local patrons. Even online businesses benefit from thinking locally—many people love supporting businesses that are close to home.
7. Team Structure
Investors and supporters want to know who’s on your team. No one can do it all, and your supporters want to see that you’ve assembled a team that complements your strengths and fills in any gaps. They want to be confident that you’ve got the right people in the right roles.
8. Advisors and Consultants
Having outside advisors shows that you’re serious about your business. It also reassures potential supporters that your idea has been carefully considered from multiple perspectives. Advisors can help you spot issues you might have missed and offer expert guidance.
9. Unique Selling Proposition
Your unique selling proposition (USP) is what sets you apart from the competition. It’s the reason people will choose you over someone else. Maybe it’s your personalized service, your innovative product design, or your unbeatable pricing. Whatever it is, it’s what makes you unique, and it’s vital to highlight it.
10. Research & Development
The world is always changing, and your business needs to be ready to adapt. Show your supporters that you’re committed to ongoing learning and innovation. This keeps your business relevant and competitive in the long run.
11. Marketing and Sales Strategy
Your marketing plan is key to getting the word out about your business. You might not need to have every detail locked down in your business plan, but you should describe how you plan to market your product or service. If you build it, they won’t come—unless you tell them about it!
12. Operations Plan
Running a business takes time and attention to detail. You’ll need systems in place for invoicing, customer follow-ups, and general administration. These tasks are vital to the health of your business, so it’s important to set aside time for them.
13. Technology
Technology can be your best friend in business. It can automate tedious tasks, track your finances, and help with marketing. You don’t need to know every detail about how these technologies work, but having a plan to integrate them is crucial.
14. Financial Plan
This section is the heart of your business plan. Your financial plan shows how you’ll make money and manage expenses. It should include your revenue streams, startup costs, projected income, and a break-even analysis. Investors need to know that you’ve crunched the numbers and understand what it will take to succeed.
15. Risk Analysis
No business comes without risks. There are four common ways to manage risk:
- Risk avoidance: Taking steps to avoid a potential problem.
- Risk reduction: Accepting that something could go wrong but working to minimize the impact.
- Risk retention: Acknowledging a risk and planning to handle it if it happens.
- Risk transfer: Passing the risk to someone else, such as through insurance.
By identifying potential risks and planning for them, you’ll be better prepared to handle whatever comes your way.
Wrap Up: The Importance of Support
Your business plan should end with a call to action, inviting people to support and invest in your business. Your supporters might be friends, family, investors, or loan officers, and they’re an essential part of your business journey. They’ll help you spread the word and grow your business, but only if you ask them!
Finally, whether you’re starting a business or just navigating life, having a plan helps. Whether you’re moving, getting married, or improving your family’s financial situation, a good plan can make all the difference. Understanding your problem-solving style will help you create a plan that works for you and attract the supporters you need to succeed.
And as promised, here are some resources to help you discover your problem-solving style. Take a moment to look them up and see what resonates with you—you’ll be glad you did!
Happy planning!
Chris Peterson
Founder and CEO, Penny Forward
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