Business Plan: First rule in the Network Marketing Business is to remember that it is a business. The idea of starting a business without a plan seems ludicrous to most business professionals, yet thousands of Network Marketing businesses are started each year with no thought to planning for success. Many may be intimidated by the idea of putting a plan together or think that a small business doesn’t need to go to the trouble. But if your business is real you need a plan to determine success, if for no other reason to answer the most often asked question from your prospects - How Much Money Are You Making?
Here are eight basic items that you should consider when starting your business:
Define your company and your service or product offering. Knowing who you are and what you do will help you stay on course and prevent distractions.
Create a budget that includes expenses and sales. Project your sales and determine your cost per sale and/or customer acquisition. Network Marketers should consider their distributor acquisition cost, not to mention how many it will take for you to reach your short and long term goals.
Set short and long term goals. Where do you want to me in 3, 6, 12 months. The smartest plans go out five years. Without written goals you will have no idea of you are succeeding or not (Read the Story of Bill).
Create a high level Mission Statement for your company. For example, do you sell stair lifts or do you improve the quality of life for aging seniors. Knowing this distinguishes you from your competition because you become a solution provider, not a sales person – as in this example your goal is not to make a sale it is to improve someone’s quality of life.
Research your market to determine if your customers really need you and most importantly can you make a profit while doing it (no business can survive without profits – not even not-for-profits).
Create Marketing Plan. How will you reach your customers (show room, face-to-face, direct mail, web commerce)? Will you do it all yourself or will a distributor network need to be built?
Regular Financial Reporting, Reviews & Aduits. Consistent financial reporting is absolutely mandatory for the success of any business, not to mention the dealing with tax issues. Without an account system you will never know if you are making money or can even afford to stay in business
Plan for bad times. There will be good years and bad years in business – make sure you plan for the bad years when the good ones are happening. Consider setting aside three to six months of expenses in a rainy day fund to cover these periods.
Obviously starting and running a business is a complicated job, but if you don’t give these eight things thought and consideration your will be putting your dream in jeopardy.
