Tag Archives: startup

Business Model or Business Plan? You Need Both!

Credit: Plan-too

Credit: Plan-too

 

As a startup entrepreneur, you’ve likely heard and seen the terms “business model” and “business plan” in conversation and online.

 

While they sound nearly the same, they’re distinctive in their structures and purposes. When used together, they can help you keep your small business focused and on the path to success.

 

The Big Picture View: Your Business Model Canvas

A business model canvas is a one-page diagram of the essential components your business needs.

A business model should answer important questions, such as:

  • Who are your customers?
  • What do those customers expect and what do they value?
  • What is your value proposition? What problem are  you solving?
  • How will your business make money?
  • How do you intend to deliver value to your customers while making a profit?

It should also identify:

  • Customer segments
  • Customer channels
  • Revenue streams
  • Key vendors and partners
  • Cost structure
  • Value proposition
  • Resources
  • Key activities

 

The Roadmap For Staying On Course: Your Business Plan

A business plan is meant to help you navigate to where you want to go in your business. As important as it is for starting a business, it’s also a valuable tool for managing and growing a business.

A business plan includes:

  • Your business opportunity
  • Your products and services
  • Your marketing strategies
  • Your financial projections
  • Your staffing needs

In relation to your business model, a business plan defines how you intend to operate your business. The length of your business plan can vary—it just depends on the size and complexity of your business and the depth of information investors ask for.

 

Together, a Business Model Canvas and Business Plan Provide a Strong Foundation to Build Your Business

Having a business model canvas and a business plan can help you operate your company with purpose so you stay on track to accomplish your objectives. If you have one without the other, you might put time, effort, and money toward resources and initiatives that won’t sustain or grow your business. And when you do that, you risk missing out on opportunities, falling short of goals, and losing morale.

If you’re worried about the time it takes to develop a business model and business plan, relax. You don’t have to tackle them in one fell swoop. Work on them in smaller bits and pieces and set aside time on your schedule for them. To help you structure your business model and think through your business plan, consider using the Business Model Canvas. Also, explore the various business plan templates and software available online.

And remember, our SCORE mentors have experience in helping small businesses of all types start and run their companies. Contact us today to schedule a free mentoring session. We’re here to provide you with expert guidance as you work on your business model and business plan.

Advertisements

Branding Your Business

No matter how small or large your business, you need branding.

Branding, according to Entrepreneur Magazine, is “the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products.”

For any solopreneur or small business owner, creating a memorable brand stands as a cornerstone for success. Behind the exceptional services and products you offer, you need a strong brand presence in your market to attract new customers and make you top of mind.

Branding involves instilling in prospects and customers a sense of what your company is all about. Branding, through your logo, business name, taglines, signage, website, print collateral, etc., sets expectations and drives people to feel a certain way when they see and recognize your company.

What Should a Small Business Consider When Establishing A Brand?

According to SCORE Portland Maine mentor and digital marketing specialist Lauren Guite, small business owners find few things more difficult than distilling their businesses into imagery, colors, and a few words. But that exercise is important for creating awareness and building a customer following.

“My advice to folks starting this process is to start big, putting everything down on paper,” shares Guite. “Have many brainstorming sessions with your trusted network of family and friends—with the people who get you and your business. Explore how you feel about your business and how you want your customers to feel—emotion is the strongest tie to your customers.”

Do’s and Don’ts of Branding for Small Businesses

If you’re at the start of your branding process, Guite suggests that you:

  • Do research to understand how certain colors and fonts resonate with people.
  • Do test your ideas before making a final decision! What your customer base thinks matters most.
  • Don’t over-explain. Less is more! Keep branding simple to make it memorable.

Small Business Branding Help

Not all small business owners feel comfortable with or capable of making the right branding decisions. At the over 320 chapters of SCORE across the U.S., you’ll find mentors (like Guite at our SCORE Portland Maine Chapter) who have marketing and branding expertise. SCORE mentoring is free of charge, and many chapters also offer low-cost workshops and seminars that cover the topic of branding. You can also find webinars and articles relevant to small business branding via the SCORE national website.

If you would like some marketing and branding guidance for your small business, contact us!

 

More about SCORE Maine Mentor Lauren Guite

Lauren Guite is a digital marketing specialist for Environmental Defense Fund where she considers social sharing strategies and audience needs while implementing a content marketing strategy. Wanting to give back to her home state, she started volunteering for SCORE in November of 2013. After many years in Washington, D.C., she’s glad to be home and helping local businesses with their marketing challenges.

 

Successful Business Startup Questions

Starting a successful business requires much more than a great idea. Can you define your innovation in the market?

Most people start with a predefined idea in their head about what they want to sell.  The reality is the world may not be waiting for your product or service. Define what you will you do, what value will you create that makes you different from similar businesses?  Identify exactly what benefits you are delivering:  better service, more convenient location, innovative design, hands on training? The process to determine your product involves testing, searching and reacting to feedback provided by your target customers. Never assume you know what your customer wants. unless you have asked.  Invest time upfront asking questions to potential customers. Data driven decisions will beat guesswork every time.

Continue reading