Step 1: create a services business plan
The first step to starting a services business is creating a business plan. A business plan is simple: it outlines various components of your company, including how you’ll measure success, who you’ll hire, what services you’ll offer, what your target market is and so forth. With a thorough business plan written out, not only will you have a clear understanding of how you’ll run your business, you’ll potentially be able to attract investors, too.
There are a few essential components that you should include in your business plan, according to Business Queensland. These components are as follows:
Executive summary
The executive summary acts as the introduction to your professional services business idea. It includes your mission statement, a brief description of the services you’ll provide and your growth plans.
Business profile
The business profile section allows you to go more in-depth with the intricacies of your professional services business. As you describe your company, go over the services you’ll offer, the customers you’ll serve, and the competitive advantages of your business. This section should also explain why you chose your company’s specific location, any employees’ expertise, and your company’s strengths. This section should also have basic information, such as the location, number of employees, and potential clients or potential customers you plan to serve.
Market analysis
Understanding your target market is essential when it comes to opening a professional services business. The last thing you want is to open an accounting firm, for example, in a town that already has dozens. Through market analysis, you’ll also be able to understand your competitors’ strengths and weaknesses better. Market research also allows you to explain what your business will do better and why it will succeed.
Legal and risk management plan
If you’re looking for investors, they’re going to want to know how your company will be organised. This section will have information about your business name registration and required licences and permits. You should also cover your business’s legal structure, whether it be a partnership, company or sole tradership.
Management and personnel plan
This section allows you to go over human resource policies, training and the role of each employee. For example, if you’re opening a digital marketing agency, you can list content writers, SEOs, paid search analysts, team managers and so forth.
Operating plan
This is the place to explain the nitty-gritty of the services your business will offer. As a professional services business, you’ll have a team of experts who sell their knowledge, whether they’re lawyers, consultants or accountants. In this section, explain in detail how your services will work, the prices based on a comprehensive cost analysis and how you’ll expand your services. For example, if you’re looking to open an architecture firm, provide blueprints for various buildings, such as commercial and residential structures, along with landscaping blueprints.
Marketing plan
Having a marketing plan is essential when it comes to growing a business. In this section, go over your marketing and sales campaigns and how you plan to attract and retain customers, garner referrals and ensure repeat business. You can also explain whether you plan to have an in-house marketing team or work with a PR/marketing firm.
Finance plan
Starting a professional services business can be costly. Many service providers find they need to look for investors to get their company up and running. The finance plan section gives you the perfect opportunity to tell investors how much funding you’ll need. You’ll also need to thoroughly describe how you plan to use any financing you secure so investors know where their money’s going. This section should also include your projected cash flow and funding and repayment arrangements; before investors put faith and capital into your company, they want reassurance that it will succeed. By making financial projections, you can give investors peace of mind knowing your company will grow.
Action plan
Your action plan is a short (approximately one-page) description of the concrete steps you need to take and the specific resources you need in order to achieve your goals for your business; include a time frame for completing these steps.
Your business plan is worth the effort
Writing a business plan takes a lot of time and thoughtful planning—it can feel like a full-time job. However, with an in-depth business plan, you’ll have a clear picture of how to start your professional services business and where to take it. To ensure your business plan is up to par, you can also get outside help. For example, your bookkeeper can help you map your financial projections, and a PR firm can help you draft your marketing campaigns. Upfront work can result in a long-term successful business, and business plans are a key element of entrepreneurship.
For more information, read our guide to building a business plan.
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