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Think of it this way: You wouldn’t show up on a customer’s doorstep and ask to start a job. You’d plan for it; you’d present why your company is the best company for the job. You’d have information on pricing, insurance and timing. You’d create a bid. The same thing goes for your business. Upfront planning and preparation is going to set you up for success in your business just as it would when it comes to a job.
Business consultant Craig Damos offers the following advice to those gearing up to write a business plan.
Opportunity, need, service
Damos finds that the best business plans address three main areas: opportunity, need and service offering. When thinking about opportunity, a tree care contractor should consider questions like: Why do you want to start your own business? What’s your market? How certain are you that your business will be successful?
Next, explore what the need is for your potential company. What need will the business satisfy? What is the demand?
Finally, think about the services you’ll be offering. After you understand the opportunity and the need, you can begin to determine what services would satisfy that need.
Sales, marketing, financial
All business plans should also contain sales, marketing and financial sub-plans.
- Sales plans examine what product or service a company expects to sell. A tree care company’s sales plan, for example, might include the services you plan to offer — tree trimming, removals, stump grinding or plant health care.
- Marketing plans would include the marketing message of your business, a plan for your website and social media efforts. All of these will help determine your target customer.
- Financial plans estimate sales, the costs of goods or services, overhead expenses, gross profit margins, cash flow and more.
Ask for help
If you’re feeling overwhelmed by even the idea of starting your business plan, you’re not alone. That’s why so many resources exist to help you navigate the process. You can always hire a consultant, but there are also low-cost or even free resources.
A local or state economic development department may be able to help with some financing possibilities, as well as offer insights into the local tree care and labor markets. The U.S. Small Business Administration and Small Business Development Centers have offices across the country.
One and done?
A business plan isn’t something you write once and put it in a drawer to be forgotten the next day. Just as circumstances on a job can change, causing you to update your original bid, a business plan is a living, changing document. You should call on it regularly to guide business decisions, and update it frequently to reflect changes in the market. That’s the beauty of a business plan: you don’t have to get it perfect the first time.
Advice or suggestions provided by Mr. Damos are statements of general applicability that may or may not apply to individual businesses, whose circumstances and operations may vary. The opinions of Mr. Damos do not necessarily reflect the opinions of Vermeer Corporation, its dealers or its affiliates.
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