How Do I Execute A Business Plan?
So, first and foremost, I want to note that there’s a difference in business plans when it comes to a service versus product based business. For this question, I’m going to give you my answer from the perspective of a service based business owner, because that’s where my experience lies.
Now, business plans are often where you outline all of the aspects of your business before you start. There are plenty of templates out there, but some key portions of it would be mapping out your target client, marketing strategy, start-up costs, projected expenses and other things like that. In all honesty, I believe business plans like that are a tool of privilege that most people are not in the position to be considering. Seriously, business plans take time and not everyone can afford that right away, sometimes you just need to start generating revenue.
When I started my consulting business, I was a principal. It was October and I knew that it was going to be my last year as a principal. I knew I was going to be going to Harvard for my doctorate if I got in, and I knew I would need to have some type of savings to be able to sustain myself. I had from October till June to figure all that out. I did not have the time to spend a month (or two or three!) writing a business plan. I needed to be bringing in income right then and there. So instead of writing out a full plan, I pulled the pieces I knew needed right away. I knew who I wanted to serve, I knew the services I wanted to provide. I didn't even need to write it down.
When it comes to service based businesses, I believe a business plan is only beneficial when you are seeking funding. When you’re approaching funders and they want to see how you think about and package your business for potential funders to view. That’s one of the best ways they have to make an informed decision on whether or not they're going to provide funding.
Another way I think of this is through the lens of white supremacy culture and its relationship with the written word. According to those rules, you have to have one step written out (a business plan) before you can think about the next one (generating income) and I believe that has kept people from marginalized communities out of the entrepreneurship game.
I say all that to say, question this belief that you ‘need a business plan’. You could spend some time writing out a business plan, or you can just start. I can tell you which one will be more rewarding 😉. But seriously, when you are in the early stage of your business, making $0-$3,000 of monthly revenue, your priority is to start and gather data from your clients and yourself, so that way you can make informed decisions around how to evolve your business. In the first year of your business, you are constantly iterating, and you have to do many different things in order to get clarity.
Now, this is for my perfectionists, because I struggle with perfectionism immensely. We think that we can find the answers by just thinking about it because we’re used to our intellectualism being able to move us forward, but thinking about your business and actually launching and working within your business are two vastly different things. If you don’t jump in and start working with clients, you’ll never actually know:
How much time you spent prepping
How much you charged and if that amount felt right for you and the work you did
The feedback from your clients about the session
What the operations for booking your clients are like
These are the kinds of things that will inform your business, which in reality would just be an evolution on your business plan anyways. Besides, we all know that saying “the best laid ones often go awry.” So instead of spending time creating a business plan and not generating revenue, just start. At minimum, you need clarity around the problem you're solving in your business, the client that you are going to be serving, and the services that you're going to provide. That’s it.
And even if you just have a hypothesis around what you want your business to focus on, start with that. Say you want to help teachers with their classroom management practices. Great! Go out and do a webinar. Just start, just do it, and disassociate yourself from the results. Because it's a matter of getting data back so you know how to move forward.
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