Don’t get too intimidated by writing a web design business plan, a lot of it just means getting down onto paper things you likely have been considering anyways. According to Entrepreneur “Writing out your business plan forces you to review everything at once: your value proposition, marketing assumptions, operations plan, financial plan and staffing plan.”
Main Points in a Web Design Business Plan Outline:
1. Business Concept –
What is the web design industry like in your immediate area and region? What are the high level possibilities for the success of your web design business? What are the prime differentiating factors and how you will set yourself apart from the competition?
2. Who is the market for your web design firm?
Who are your customers? Are you serving only mid-sized businesses? Only editorial publications? Churches? Non-profits? Teenie tiny mom and pop shops? Fortune 500 companies? What niche are you looking to serve? What is the demand like for the service? And this leads us into our next question.. What does your pricing need to look like to serve these customers? And it’s not always getting your price down into affordability; maybe you need to price higher so that your company seems more professional and that you can offer above and beyond service. “Price high and justify.”
3. Income and Cash Flow statement, Balance Sheet etc.
“Start by estimating the revenues generated by an average sale. Then subtract the costs that change with each transaction, like sales commissions and costs of producing the products sold. The result is your “unit contribution.” Next, predict your monthly overhead, or expenses that don’t vary directly with sales volume, such as rent, salaries, utilities, legal fees, and accounting expenses. Finally, divide your monthly overhead by your unit contribution. That number will tell you how many transactions you’ll need per month to break-even.” From this article on Inc. of The Basics of a Business Plan by the Numbers.
General Principles for writing a Web Design Business Plan:
1. Keep your business plan short and simple.
Go for it right now with this One Page Web Design Business Plan.
2. Use visual charts to quickly show key numbers.
3. Do what you do best, and make it look professional.
4. Ask key questions like what will be it’s annual revenue in a year, and in 5 years.
5. What things can I delegate? Sales, Technical or others? How will you attract these people to help, and what will be your key differentiators of process and culture?
6. Is the business plan going to help you raise money?
7. How much of an initial investment will the business need?
Tools for Creating a Business Plan:
1. LivePlan.com – Visual planning tool, helpful if you really don’t know where to start. It will give you the sections and the template is already there.
2. The Art of The Start 2.0 (Book by Guy Kawasaki) – “It’s most relevant for technology or IT companies, but he has a way of writing that’s very clear, very to the point. There’s not a lot of pedantic info that you’ll find in textbooks.”
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Other Links related to Web Design Plans:
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