Welcome to mastering the art of writing a one-page business plan!
Have you considered writing a business plan but are intimidated by the time and effort required? If so, consider a one-page business plan.
Today, many entrepreneurs start their businesses quickly by writing a one-page business plan. Maybe you have heard of this type of business plan, but you aren't sure what it involves and whether it would be right for you.
In this post, we will explain a one-page business plan and guide you through the nine steps to complete your one-page plan.
Each step addresses a specific portion of your business, encouraging you to develop a comprehensive strategy.
We will provide an example response for each question later in this post.
What is a One-Page Business Plan?
A one-page business plan is a simplified and condensed version of a traditional business plan focusing on the critical elements needed to succeed in a business venture.
The benefits of a one-page business plan are numerous. It helps entrepreneurs quickly and easily communicate their business strategy to stakeholders, including potential investors, partners, and employees.
In addition, the one-page business plan can serve as a framework for making decisions, setting goals, and tracking progress.
What Does a One-Page Plan Look Like?
While the exact format can vary based on individual preferences and business needs, here is a sample layout to give you an idea of a one-page business plan.
Remember, this is just a sample layout, and you can adjust and modify it according to your specific business and preferences.
When creating a one-page business plan, it is important to keep it visually appealing and easy to read.
Use clear headings and bullet points to organize information.
Use a font that is easy to read and ensure the font size is large enough for easy reading.
The goal is to create a visually appealing and concise representation of your business plan on a single page.
What Topics to Include in a One-Page Business Plan?
The specific topics to include in a one-page business plan may vary depending on the nature of the business and its industry.
It is essential to focus on the most critical areas of your business within the space limitations of a one-page document.
In our example, we selected the following nine topics for discussion.
Here are some additional topics you may want to consider when creating a one-page business plan:
Market Analysis
Marketing and Sales Strategy
Operations and Production
Team and Skills
Financial Projections
Expansion and Growth Plans
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Illustrated Answers for a One-Page Business Plan
Below are answers for a new coffee shop in a busy metropolitan area, which illustrate how to answer the questions in each step.
Let's start by discussing.
Step 1 The Problem
This step asks the fundamental question: What Problem are you trying to solve?
For instance, if you're planning to open a coffee shop, the problem could be there are no coffee shops in the area offering premium coffee and a cozy space for people to meet, work, socialize, or relax in a comfortable environment.
There are no coffee shops that encourage long stays.
What are the existing alternatives?
Local coffee shops are designed for short stays or a combination of coffee shops and restaurants.
You will note the answers to the questions are bullet points or short, concise statements. There is not enough room on a one-page plan to write sentences or go into details.
Step 2: Customer Segments
The target market is the customers your product or service is designed to serve.
Who are the customers your product or service is intended for? For our coffee shop, the target customers are:
Young professionals
Couples
Shoppers
People living or working in the area
Who will be the early adopters of your service or product? In this case, it will be
young professionals
When identifying your customers, consider demographics—age, marital status, family size, income, etc.
Focus on your preferred or most likely customer; your business won't be for everyone.
Step 3: Unique Value Proposition
The value proposition is a statement explaining the unique benefit your product or service offers customers.
What key benefit does your product or service provide customers that they cannot get elsewhere?
Example:
Home-like, cozy, and comfortable environment
Quality menu of premium coffee and pastries and
Expert Baristas and friendly staff
Step 4: Solution
A solution is a product or service that addresses a specific problem or fulfills a market need. It is a business's core offering that provides value to customers.
The solution should clearly describe how it solves the problem or meets the target market's needs. It should highlight the unique features, benefits, and value propositions that set it apart.
For our coffee shop, the solution is our coffee shop is designed for longer stays.
We will create a unique location where customers can meet, socialize, or relax while enjoying the best-brewed coffee, tea, and pastries in town.
Step 5: Channels
The marketing strategy outlines the methods that will be used to reach and engage with your target market.
How will you contact and engage with your target market?
Example:
Website
Google My Business Profile
Instagram
In-store loyalty program
You should focus on channels your customers use or visit regularly, and you don't need many channels.
Step 6: Revenue Streams
The revenue streams are the sources of income for your business. What are your business's primary revenue sources?
Example:
Coffee
Espresso
Tea
Pastries
Step 7: Cost Structure
The cost structure outlines the costs associated with running your business.
What are the primary costs of running your business?
Example:
Cost of goods sold 35%
Sales and marketing expenses 4.4%
Administration expense 36%
Depreciation less than 1%
Focus on 4 or 5 costs. You can combine smaller expenses under a category titled other.
Step 8: Key Metrics
What are the key performance metrics that you will use to measure the success of your business?
Example:
Cost of goods sold
Labor percentage
Top-line sales
Cash flow
Customer loyalty
The key performance metrics to measure depend on the nature of your business and its industry. You should use the metrics associated with your industry.
Step 9: Unfair Advantage
An unfair advantage is a distinctive characteristic or resource that gives a business a significant edge over its competitors.
It is difficult to replicate or imitate, providing the business with a unique position in the market.
The unfair advantage sets the business apart and contributes to its long-term success.
A business plan must outline and emphasize its unfair advantage clearly. Investors and stakeholders need to understand why the business has a unique position in the market and why it will be difficult for competitors to replicate or surpass its success.
Example:
We will be the only coffee shop in the area offering superior-grade Columbian and Costa Rican Margaritas, Cashier beans, and Pastries from the award-winning Irene's Old-World Bakery.
The coffee shop owners believe their Unfair Advantage is Expertise and Quality.
One-Page Business Plan Conclusion
By crafting an effective one-page business plan, entrepreneurs can communicate their business strategy quickly and efficiently.
These nine steps provide a concise framework for decision-making, setting goals, and tracking progress.
By keeping the plan visually appealing and easy to read, the critical elements of the business strategy can be effectively communicated to potential investors, partners, and employees.
Additional Resources
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