Describe Your Business Operations
Next, describe how your business will solve your customers' problem. Take your time and do a thorough job. It's very likely that the first time you attempt this task, questions will occur to you that you didn't consider previously.
If so, figure out a good answer and rewrite your description. The important thing is not how long it takes to do this, but that you end up with a realistic, well-thought-out business description. After all, it's cheaper to answer questions and solve problems on paper than it is with real money.
Your business description should explain exactly what you will provide for the customer as well as what you'll exclude. Each of the choices you make in your business description will affect the amount of money you'll need to start or expand and how much sales revenue you can expect.
Consider the following series of questions when writing your business description.
These questions apply to most small businesses. Feel free to skip any questions that don't pertain to you.
• What problem do I solve for my customers? (You answered this question in detail above.)
• Who is my typical (target) customer?
• How will I communicate with my target customer?
• What products and/or services will I provide? Are there any products or services my customers may expect me to provide that I don't plan to provide?
• Where will my business be located?
• Where will I buy the products I need?
• What hours will I operate?
• Who will work for me and how will they be paid?
• Who will handle critical tasks like selling, ordering, bookkeeping, marketing and shipping?
• How will I advertise and promote my business?
• What are the competition's strengths and weaknesses?
• How am I different from the competition, as seen through the eyes of my customers? (Make sure that you answer this question from a customer's perspective and not from an owner's point of view.)
To sum up, writing a precise description of your business is an essential part of the business planning process.
Make sure you've considered as many details of your operations as possible, well before you open your doors.
Next, describe how your business will solve your customers' problem. Take your time and do a thorough job. It's very likely that the first time you attempt this task, questions will occur to you that you didn't consider previously.
If so, figure out a good answer and rewrite your description. The important thing is not how long it takes to do this, but that you end up with a realistic, well-thought-out business description. After all, it's cheaper to answer questions and solve problems on paper than it is with real money.
Your business description should explain exactly what you will provide for the customer as well as what you'll exclude. Each of the choices you make in your business description will affect the amount of money you'll need to start or expand and how much sales revenue you can expect.
Consider the following series of questions when writing your business description.
These questions apply to most small businesses. Feel free to skip any questions that don't pertain to you.
• What problem do I solve for my customers? (You answered this question in detail above.)
• Who is my typical (target) customer?
• How will I communicate with my target customer?
• What products and/or services will I provide? Are there any products or services my customers may expect me to provide that I don't plan to provide?
• Where will my business be located?
• Where will I buy the products I need?
• What hours will I operate?
• Who will work for me and how will they be paid?
• Who will handle critical tasks like selling, ordering, bookkeeping, marketing and shipping?
• How will I advertise and promote my business?
• What are the competition's strengths and weaknesses?
• How am I different from the competition, as seen through the eyes of my customers? (Make sure that you answer this question from a customer's perspective and not from an owner's point of view.)
To sum up, writing a precise description of your business is an essential part of the business planning process.
Make sure you've considered as many details of your operations as possible, well before you open your doors.