If you want to build your own business then having a business plan is crucial and if the word business plan sounds too complicated for you then don't worry. 

It's actually pretty simple and in today's video I'm gonna simplify it for you I'm gonna tell you about the three-line business plan and also the one-page business plan so without any further ado let's get into today's article. 

Beginners Guide About Why You Should Have A Business Plan In 2020

I have built my own business in 2019 I have a freelancing business and I also have a consulting business and I hope that in today's article I'm gonna be able to simplify what a business plan is for you the content of this article is heavily inspired from a book called how to make your own business plan and I highly recommend this book by Alex ginagenick. 

It's a very good book for anyone who wants to get started in business but really does not have any idea about the technical or the basic aspects of it because it really boils everything down in very very simple words but in today's article I'm going to cover a lot of it so I hope that it will help now let's talk about what exactly your business plan is. 

If we speak very formally it is a formal document you hand to some organization investor or keep for internal use however even if you don't need to hand over your business plan to someone you need a business plan as a part of your strategy because it is going to tell you how you'll execute each and every part of your business. 

It can not be something that is written down but at least in your mind what your business plan exactly is now in this book I found out about one of the most amazing things that I wish I had found earlier and this is called the three-line business plan what is the three-line business plan in this you actually figure out the crucial parts of your business and these are three things number one the product is actually the most crucial part of any business plan. 

So it can be actually a physical product a digital product a service whatever you are offering to your customer what are they are gonna buy from you that is your product second component is marketing is basically the most crucial part of actually getting sales for your product and I am someone who has worked in marketing for almost two years now. 

So I can vouch for the fact that without marketing your business plan is not even a business plan anymore so the next thing that you should do is figure out where your potential customer is gonna come from and let's say you're building an app you're probably going to focus on getting good reach the in-app store. 

let's say you're selling some kind of jewelry maybe you will have Instagram as your primary strategy maybe you're selling some kind of service you might have Facebook Instagram twitter of Pinterest all of them as your marketing strategy really depends on where your ideal clients are gonna be hanging out the last thing is the finances how are you gonna make money so three factors should go in making your own business plan number one product what is the product and what is the target audience number two marketing how will you promote this product and number three finances how are you gonna generate revenue. 

Business Plan In 2020

now this is the basic structure of a business plan ask these questions to yourself about the business that you want to make or the product that you want to sell or the service that you want to sell and you probably have your business plan ready now if you want to expand on it if you want to make a bigger better business plan then you can make a one-page business plan which is going to be even more focused on the different areas of your business that the three-line one does not focus on and while the three-line business plan is actually good having a one-page business plan is going to give you a lot more structure and a lot more idea about what are the next steps that you should take should you get stuck at any point of your time. 

Now while I was doing the research for this article I did find some very good content on canvas yes canvas app and on canvas, I found some amazing business plan templates and this is one page of that which has literally everything that you need to make a proper business plan what Alex Canadian teaches it's very good for beginners because it doesn't complicate it but at the end of the day you need to know how to write a very detailed business plan. 

So you can definitely consult it after the video is over so that you can have an even better idea about what a business plan is how to make one and you literally get the template pre-made as you can see on the screen it has everything from your problem to the solution you're going to be giving what is going to be your advantage what channels you'll use to reach your customers what are the customer segments and what are the revenue streams and much much more by the way. 

I'm going to leave some resources for you to check out if you want to check out some actual real business plans because I guess it will make everything much more simple for you but yeah regarding the one-page business plan it should probably also contain your first thing in the three-line business plan that is your product okay. 

Expand a little bit on what exactly your product is what it does and make sure that you are very very clear on that okay it doesn't have to be very hard to read it must be very simple to read and even a six-year-old child should understand what exactly you do the next thing you'll do is you'll actually expand a little bit on the marketing plan as well what are the avenues. 

You'll use to market your product why you'll use them and what kind of results you're expecting the next thing that you'll do is monetization how are you gonna make money from this product or what are the different ways that you're gonna make money from this product the next thing that you should do is actually devise the profitability how profitable this business can actually be having some realistic goals about your business really helps what is the target audience size. 

How much money they are willing to spend what are going to probably be the financial goals for you in the year the next thing that you do inside a business plan is actually to build a client avatar what your target customer actually looks like what will their age be what will their gender be what is their needs what are their demands what are their desires what kind of lives they need where do they live all these things actually influence. 

A lot about how a buyer behaves and you really really need to know how exactly your customer behaves you might end up building a brilliant product but if your client is not ready to buy it if your ideal customer is not even looking for it it's gonna be hard to sell it to them so you really need to know the reality of the situation and a business plan is really gonna help you do that next thing you think about is the size opportunity. 

How big is the target customer sites for example in some countries the old population is so high that it's a better idea to launch something for them rather than for the younger people if the young population is not that good but in some countries, the young population is very high so if you want to market it to a big market probably you should make something that is more targeted towards the young people so it really really matters a lot how big your target audience is and what is the size of that next part is the founding team and the founding team can actually be just you. 

If you're starting off on your own that's totally normal another thing that you cost another thing that you talk about is if you have had any previous funding and if you haven't that's okay and lastly you also talk about the costs that you might incur obviously running a business is really really hard it's not all profit there are a lot of costs that you're gonna incur so you need to know what is the cost uh what are the.

They gonna be so that you actually recover it when you are running your business you know what exactly the target uh revenue goal should be and also to have a better idea about how much you need to put in into the business in case it is something that you need to invest on first to get started so yeah make sure that you also think about the cost that you incur as someone who has built her own business and also I have helped a lot of people run their businesses i know this for a fact businesses are immensely costly they cost like more than a baby that's why people are so when people build businesses. 

Conclusion

They're so passionate about it because it's literally it's extremely costly to run a proper business but it's really fulfilling to have your own business if you're passionate about what you do and if you want to build your own business I'm totally gonna give you my approval just make sure that you don't have any big responsibility or you actually have the privilege to work on your business without worrying about other factors of your life or your family and that will be probably more than enough.