Practical 13:

Prepare a business plan of small scale business or product

if you are seeking outside funding, you are required to present a formal proposal. But,
the benefits of a business plan go beyond finding lenders. A strategy can help you grow
your company. Think of the concept like this: If you’re like most people, you probably
wouldn’t buy a car without doing some research. You would choose one after weighing
the good and bad traits of different vehicles. You’d make sure the car starts before
signing the title. It’s a similar situation with your business venture. You need to be sure
your business has the potential to be a worthwhile investment. A business plan can be a
simple outline or a detailed document. Your plan is a roadmap that steers you in the
right direction. A business plan is not a promise you have to keep over time.
Business Plans
So what can a solid strategy for building your business help you accomplish? Here are
four benefits of a business plan:
You can get outside funding
To get funding from lenders or investors, you need to show a business plan. Lenders
want to see that they are investing in a company that will last and grow. You must give
lenders a plan detailing the steps you will take as a business owner.
Even if your lenders are friends and family, it’s good to organize your ideas.
A business plan helps others understand your passion and see where their money is
going. Communicating clear ideas to investors helps prove you can get your business
off the ground and build it up.
You’ll need to know how to write an exit strategy for a business plan as well. A thriving
business is no good to your investors if they have no way to eventually cash in on their
investment.
You gain an understanding of your market
One key piece of your business plan is knowing how to conduct a market analysis.
When you conduct this study, you look at your industry, target market, and competitors.
You can see trends in decisions that could help, or harm, your business.
Another great benefit of a business plan is learning from someone else’s mistakes.
Learning from other’s mistakes is less time consuming and financially burdening than
learning from your own mistakes. The more prepared you are to deal with the aspects of
your market, the easier it might be to handle issues down the road.
You focus your strategies
The entrepreneur in you is eager to dive right into business. But, having a business plan
can help you pinpoint the best strategies for your company. Before you take the plunge
into ownership, work out the important details.
This business plan benefit also helps you prioritize tasks. By looking at the big picture of
your business, you can decide which challenges to tackle first. A business plan could
also help you choose which tasks to address later.
You can check the financial numbers
Business plans include financial projections for your company. While the projections are
not a peek inside a crystal ball, they do represent a forecast of your financial health.
Planning for expenses will be important for keeping operations steady.
Cash flow projections help you see if your goals are possible. They also point out trends
that could potentially harm your business. The faster you spot upcoming issues, the
faster you can correct problems.
Be sure that your projections match up to your expectations. Have you set aside
enough money to do the tasks at hand? Double-check your numbers so you are
prepared to handle your finances in the future.
Business plan parts
Here are a few items you could include in your business plan:
Company description telling how you will meet your customers’ needs.
A market analysis that talks about your industry, target market, and competitors.
Services or products you will sell.
Marketing plans for generating sales.
Funding requests with a budget outlined.
Financial projections from your financial statements.
Your business plan could be anything between a basic outline to a 40-page
presentation. If the plan is just to keep you on track, you can cover the areas you think
need to be addressed. The benefits of a business plan are not limited to a specific
length, but can be tailored to your needs.
If you write your business plan for lenders, you will want a more formal, detailed plan.
Include a table of contents, a summary of your business, and an appendix with
supporting documents.
Steps to Starting a Home-Based Photography Business
If you're ready to start getting paid to take pictures, here are the steps to get started.
Decide what types of photography services you’ll offer.
Businesses and individuals need photographers for many reasons. Businesses need
pictures of their products for brochures. Realtors need images of the homes they’re
selling. Magazines need photos related to the articles they’re publishing. Or you can
stick with non-business photography and take portraits or photograph weddings.
2. Develop your business plan. The business plan outlines the details of your
business, including the services you offer, how you’ll differ from the competition,
financial projections, and marketing strategies. This is a good time to determine your
pricing structure. For example, if you want to make $50,000 per year and believe you
can book 26 weddings a year, you’d need to charge nearly $2,000 per wedding. Your
pricing needs to take into account the cost of equipment, supplies, and travel, as well as
your time.
3. Decide your business structure. The easiest and lowest cost option is sole
proprietor; however, creating a limited liability company (LLC) will offer greater
protection of your personal assets should you run into legal problems.
4. Create a business name. What you name your business will become the brand
image, so choose a name that fits the type of photography you want to do. If you want
to take kid portraits you can have a whimsical name, but if you want to do business
photography or weddings, you’ll want something that sounds professional or elegant. If
you don’t use your given name in your business name, you’ll likely need to file a name
statement with your county clerk’s office. You also need to check with the U. S. Patent
and Trademark office to ensure the name isn’t protected by trademark.
5. Officially establish your business. Once you have a business name and set up
your business structure, you need obtain business license or permits as required by
your city or county.
Although you may take photos using a digital camera, since you’ll be giving people
prints, you may need to collect sales tax if you live in a state that charges sales tax.
Your state’s comptroller or tax office will have the necessary forms and information on
how to collect and pay sales tax.
Once you have your business license, you can open a business bank account.
6. Gather needed equipment and supplies. If photography is your hobby, you
may already have much of the equipment you need; however, you’ll have to assess if
the quality is high enough to charge for services. Along with a camera, you’ll also need
lenses, flashes, batteries, photo editing software, quality photo paper and packaging
used to deliver the photos to clients. You may also need lights and screens to control
lighting.
7. Create marketing materials. Along with business cards and brochures, build a
website. Get permission from your subjects before posting their photos online. Also, set
up social media accounts on networks your target market can be found. For example, if
you’re doing wedding photos, you should have a Parget market.
8. Market, market, market. The key to success in a photography business is
marketing. You can’t take and get paid for photos if no one hires you. Along with
business cards, brochures and a website, use your personal and professional networks
to spread the word about your business. Attend trade shows and events geared toward
your market. For example, if you want to do wedding photography, attend wedding
shows. If you want to take pet portraits, attend dog shows.