If you are thinking about or are in the midst of creating a direct selling or MLM company, you may be wondering if you need a business plan.
A business plan is like a road map to a specific destination. You’re more likely to get to your destination if you have a map (or GPS!) that tells you how to get there. The tasks to be performed are like stops along the way.
When you include a financial plan, a business plan can help you to identify the types of expected expenses and how much it will cost to build and operate your company.
Business plans help you and others to see your vision more clearly.
They paint a picture of what your company may look like in years to come.
Plainly, a business plan is also a vehicle to help you to obtain investment capital, whether it’s from friends, family, or outside investors.
Business plans can help you to think about how your business will grow. When you have a project plan in your business plan, you’ll see the next steps.
For many companies, the genesis of standards to operate the business originates in the business plan.
“Focus.” I like this word to describe what a business plan can do for the entrepreneur. Business plans help people to hone in on the details. At the same time, like a roadmap, they paint a picture of the entire trip.
Whether you have it all figured out or you don’t, writing a business plan is a good idea. I say YES to business plans.
Reasons Not To Have A Business Plan
One of the topics I discuss with my clients and prospective clients is the importance of a direct selling business plan.
When I bring this subject up, I hear some very interesting reasons why they don’t bother to write one.
Here are some of them:
- My idea is too big.
- I can’t write it down, because it keeps changing.
- I don’t need one, because I have the money. I’m not borrowing money from the bank.
- I am just focusing right now on just two things. Everything else can wait.
- It’s all my head. I know where I’m going.
- I already know where I’m going to be in five years.
- I’ve never written one before with my other business ideas.
- I don’t have the time to write it down.
- I can’t write it yet, because I don’t have all the answers.
What Business Plans Do
Some people think that the sole purpose of an MLM business plan or a party plan business plan is to secure outside investment capital. This is one of its purposes, but it’s not the most important reason to have a business plan.
Business plans help you and others to see your vision more clearly. They paint a picture of what your company may look like in years to come. A business plan is also a vehicle to help you to obtain investment capital, whether it’s from friends, family, or outside investors.
Business plans can help you to think about how your business will grow. When you have a project plan in your business plan, you’ll see the next steps.
A thoughtful business plan can be used to show yourself and others, convincingly, that you have created a viable and profitable model.
For many companies, the genesis of standards to operate the business originates in the business plan.
“Focus.” I like this word to describe what a business plan can do for the entrepreneur. Business plans help people to hone in on the details. At the same time, like a road map, they paint a picture of the entire trip.
When writing a business plan, important questions are answered and decisions are made. However, because business plans aren’t written in stone, they can be changed as needed.
Whether you have it all figured out or you don’t, writing a business plan is a good idea. I say YES to business plans.
Get Even More Creative
Writing a business plan gives you the opportunity to be even more creative. As you focus on each area of your business plan, you’ll see what you know already and you’ll become aware of the areas in which decisions remain to be made.
For now, it’s OK if parts of your direct selling business plan can’t be written yet. The empty spots will be really important because they will show you clearly where your ideas are not yet fully developed.
Did you know that once written, a business plan can be changed? There is no shame in updating a business plan to reflect what you’ve learned. A business plan is not a static document.
Update your business plan as you grow. You may want to keep your original plan so you may look back on it to see how you have grown or if you made a change you didn’t like, you may revert back to the original.
It’s Not Just For You
Your business plan is not just for you. Your business plan should be used to communicate your vision to others who will help you to create and launch your business. If your business plan is not written down, how can you expect the people who will help you to do their best work?
Be Fearless
Don’t be afraid to write a business plan. We have helped business owners to move past their objections to writing a business plan.
Start Here: The Guide to Building and Growing Your Direct Selling Company
Discover and use our 250-page book for new and young direct selling companies. Included is a powerful chapter on direct selling business plans, plus one hour of professional consulting for your business.
Business Plan Review
As consultants to direct selling companies, we also offer a Business Plan Review.
This service is a thorough examination of your business model that begins with a review of the documents you’ve prepared that describe how your business will work, including your MLM business plan or party plan business plan as it stands today. We review your written materials, ask questions to obtain additional details, and then prepare a written evaluation of your products (including their suitability for direct selling).
Included in a Business Plan Review is a thoughtfully and professionally prepared list of suggestions to make your business or business model even stronger.
When your home party business plan or MLM business plan is reviewed by an expert, you can make changes now that will save you time and money.
Do You Need Help With Your Compensation Plan?
We provide compensation plan consulting.
We can design specifically for your company a dynamic compensation plan that motivates and rewards all of the 12 essential behaviors, or evaluate a compensation plan that you wrote or that was written by others.
Other Questions?
For more information, contact us today at 503.244.8787 or submit our information request form.
Jay Leisner, the President of Sylvina Consulting, is a top compensation plan and direct selling expert, a trusted adviser to new and established network marketing and party plan companies. For more than 30 years, Jay has enjoyed assessing and improving network marketing, party plan and referral marketing companies across the globe.
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