building your business plan - freelance dietitians group · building your business plan ... • do...

Page | 1 Oct 2012 © 2012 FD group own the copy right of this fact sheet and they must not be reproduced in any way. This fact sheet is a valuable resource for members of the FD group only.

Building Your Business Plan

What is a Business Plan1?

Every business, no matter how small, needs a working plan for the future detailing where you are now, where you want to be and your strategy for growth.

Before you design your Business Plan, consider:

In your list of ten goals you hope to achieve in your new business, you should include:

• an income figure

• a vision of what success would look like to you

• a goal that explains your business and will help others

10 things you do well

10 goals you hope to achieve

Skills, hobbies and passions

come together


With these ideas in mind, begin another list of what you need to do to make your ideas a real business. This can include:

• coming up with a name

• creating a website

• setting up a business account with your bank

• drawing up a Business Plan

A Business Plan is the blueprint of the steps you need to take to build your business.

If you are not using your Plan to seek funding, the document can be more informal. You may choose to use it to set objectives and to map out resources needed to achieve your goals within the time you specify. However, a Business Plan is still relevant to monitor your progress.

Why do you need a Business Plan?

✓ To focus your efforts, set objectives and company direction. ✓ To enable you to spot potential pitfalls before they happen. ✓ To set realistic targets that allow some flexibility. ✓ To enable you to track your growth. ✓ To raise finance.

Freelance dietitians need to think in a business-like way in order to become successful. This does not come easily to many dietitians as the self-employed mindset is very different to that of an employee. A Business Plan can be as simple as a month by month plan of the next twelve months with an estimate of income and expenditure. As a formal document you can review it on a regular basis in order to assess your progress. Without it you will not be able to measure your achievements nor objectively assess where your business is heading.

You may be fortunate to have some ready-made customers from the outset, but

consider:

• A business does not just happen, it needs to be planned and pursued.

• People may or may not bring business to you, so don’t leave it to chance.

• Customers do not always pay, and if they do, they do not always pay on time.

The Customer Relationship


Without a Business Plan you will not have a clear and focused idea about your business. Be prepared to be ‘fluid’ and revise the plan regularly to allow for the focus to shift as your experiences change and grow.

Preparing your Business Plan

If you fail to prepare, then you should be prepared to fail. Gather your thoughts and collect as much information as you can on the following:

Table 1: Considerations in preparation of a Business Plan

MARKETS CUSTOMERS

• Decide on your catchment area (both geographic and professional specialism). • Identify who could be your main customers? Local gym, public sector, small-medium enterprises, PR agencies, etc.? • What services might they buy? One-to-one, group lecture, product analysis, or a book? • Can you deliver these services? What is your experience and expertise? Do you need other freelancers in partnership with you?

• Who should you contact and how do you make contact? • Response levels will vary depending on whether your contact method is narrow (eg, calling up personal contacts) or broad (eg, a mailshot). • Team up with freelance colleagues for bigger assignments or act as a lead contact for your client to bring on other specialities. When calculating fees, apply a percentage to cover any time you spend managing the work of other freelancers. • Your current or previous employer may refer clients to you or even become a client themselves.

•decide on your catchment area

•decide which service(s) will you offerMarkets•who and how to contact

•narrow or broad contact methodsCustomers•who are they and how do they compete

•consider developing your own nicheCompetitors•respond to customer needs

•what makes your business differentServices•be realistic, set achievable challenges

•decide how to achieve your goalsSetting Goals•use your time, money and/or people wisely

•assess and update your skill setResources


COMPETITORS SERVICES

• Who are your competitors? • On what basis do they compete? • Is there room for another supplier? • Can you develop your own niche? What can you offer that is different? Identify any relevant successes you have had.

Your services have to be in response to a customer need. You then have to persuade someone to become your customer and to pay you – this is very different to being a dietitian within the public sector. Think about the following: • What do customers want or say they want? • Are you offering what they want? • What is the value to the customer? • Why should customers buy from you? • Do you have a unique selling point (USP)? • What are your skills and areas of expertise? • What added value can you offer? • Is your pricing competitive/realistic? • Have you factored in all of your costs / overheads? As a rough guide you should put aside at least 40% of your fee for tax, pension, cover for sick days, and National Insurance.

SETTING GOALS RESOURCES

Setting realistic goals for your business includes: • How much do you want to earn? • How much do you need to earn while maintaining a good work/life balance? • Decide how to achieve your goals. • Assess the resources available to you to ensure they match your goals. Set yourself achievable challenges in reasonable time-frames.

Think about your resources as assets and as costs: • Your time – use it appropriately and measure it. • Interruptions and diversions – try to minimise them. Filter out junk e-mail and check for new e-mails two or three times a day at most. • Try to make every hour productive. • Maintain a balance. Take regular breaks from your computer. This will improve your productivity. • Information – keep up to date and maintain awareness of new products, services and research. • People / contacts – maintain / increase them. Build a client database with contact details, personal information and a list of jobs you have completed. This will help you to identify your most profitable areas of work. • Professional meetings – attend by all means, but remember your time and costs. • IT / telephone / back office – these need to be professional but cost effective. You must have your own dedicated workspace and capability to answer and return client phone calls •Media and communication skills – can you write a good CV, project proposals, or press releases? Can


you deal with the media? If not, can you access a course to improve your skills? •Remember to have appropriate insurances. These include professional indemnity, public liability, loss of earnings and home insurance.

Writing Your Business Plan2: a basic structure

SAMPLE BUSINESS PLAN

STRUCTURE

no more than 5 pages

plan no more than 3

to 5 years ahead

have sufficient

detail in the early periods

provide an Executive Summary

periodically review and update the

plan

ask several people to

review and advise


Detailed Business Plan Structure

Cover page Business name, contact details (phone, email), logo

Executive Summary -Synopsis of the entire plan; snapshot of your business -Write this section last to include key selling points and highlights from all other sections (the who, what, when, how and why of your business) -Clarity of written information, presentation and layout -Should be no more than 1 to 2 pages

Table of Contents:

Funding Required Amount requested Include:

o Purpose of financing o Use of funds (eg, start-up costs, fixed assets, safety

margins) o Description of security o Working capital (funding received by other means eg,

savings/family or other loans) o Include copies of quotations for any equipment, etc you

wish to use the funding for

Sales and Marketing Strategy

Subheadings Business description

3. Table of Contents

Funding required

Sales and Marketing Strategy

Your Management

TeamOperations

Contingency Plans

Financial Forecasts

Schedule of major assets and liabilities

Annexes and supporting documents

2. Executive Summary

Write this section last

1. Cover Page


What type of business are you proposing to establish? How will it be run3:

Trading Structure Legal Category Your Tax Status

Limited company Incorporated Company director and/or employee of your company

Sole Trader Unincorporated Self-employed

Partnership Unincorporated Self-employed

Limited liability partnership

Incorporated Self-employed

Umbrella company

Incorporated Employee of the umbrella

Target market Who are your potential customers? What research do you have to back up demand for your product/service? Do you have evidence of potential or current offers of work?

Competition What is the current competition? How do you know there is room for a newcomer?

Positioning (sales distribution if relevant) -What advantage over that competition do you have? -What are your strengths and weaknesses and those of your competition? -Could another business undercut your offering or is your product/service unique? -What is your Ultimate/Unique Selling Point? Key areas to consider are:

Price Quality

Delivery Customer service

Terms of business Other features or service

Marketing -How will you promote your business? -What, where, when, how and why are you going to market your service to potential customers to its best effect? -How much will this cost?

Your Management Team

-Your credentials and those of any staff you plan to later recruit. Any prospective lender is going to want to know who you are – your experience, skills and planned role in the business. Who will supply any expertise you lack? Will extra resources come in the form of hired freelancers?


-Give evidence of your commitment to building your own business possibly by appending your CV .

Operations -Your premises (evidence of landlord approval if applicable). If trading from business or retail premises you will need to provide lease details (rent, rate and repair obligations; insurance, size, condition, location and security of the premises). -Your management information systems, production facilities/equipment and IT -Security of property, insurance cover purchased -Details of suppliers (and backup suppliers)

Contingency Plans -What are the major risks which could threaten your business and how can you minimise those risks? -Conversely, what are your plans if the company grows beyond expectations?

Financial Forecasts Financial projections and assumptions/cashflow forecast: -What are your expected sales for the first five years, and at what price? -Translate everything you have said in the Plan into hard facts, ie, numbers:

o Schedule of major assets and liabilities o Financial status of owners o Annexes and supporting documentation to include:

market research, quotations for any equipment, etc, letters of potential offers of work and your terms of business.

o Visuals such as photographs, tables or maps to help demonstrate your case.

Implementation Schedule (Optional)

- To detail your order of events as well as when and how you plan to operate.

Remember: This document is your marketing tool (See Factsheet #2 “Marketing Dietetic and Nutrition Services” for further marketing advice). The aim of a detailed Business Plan is to effectively and clearly communicate your strategy to a time-strapped potential investor. If you choose to develop a more informal plan for yourself, make sure you use it as a tool to focus on your bottom line because the efforts you put into your Business Plan will determine the growth and success of your business.


TIPS FOR A SUCCESSFUL BUSINESS PLAN

Growing Your Business

Take time to recognise your personal characteristics and strengths, then consider how you work best:

use layman's language

easy to read, good layout

state the facts favourably without

exaggerating

give priority to selling your service (concise

product/service description)

sound product and market knowledge

accurate financial descriptions

consistent order of events in Business

Plan

an accountant should verify your figures

BE POSITIVE!

Are you a self

starter?

part of a team ORleading a

team

as an individual (writing articles,

research).


Teamwork

• Perhaps you could team up to form alliances with other freelance workers, eg, by forming a group practice, or creating a team to tender for a large contract. This is preferable to taking on too much and running the risk of letting clients down when you fail to meet deadlines. Build up other freelance contacts before you need them so that you have a working knowledge of who is out there and who you can work with easily.

• Working together is also useful in that it can provide cover for illness or other unexpected absences.

• Match objectives and commitment. The synergy of skills and expertise can be very powerful.

• Possibly run a conference for potential customers and influential Key Opinion Formers.

• Be clear and honest with team ‘partners’, especially when it comes to fees. Agree a daily rate (and hours/day) in writing and in advance. You do not need to disclose how much you are being paid for the contract – you are the lead and they are the sub-contractor. Consider a contract and a confidentiality agreement if working on commercial jobs.

• Share (two-way) best practice and good / bad experiences.

Evaluation

You are in business to make a profit and will need systems in place to be able to measure your progress. Ensure you have a few key measures, such as:

• Objectives and milestones.

• Activities / time expended.

Fee Rates, Revenue and Costs – should be written and noted in a handy place as they may vary by the type of customer eg, a lower rate for the public sector. It is important to recall what fee you have quoted to which organisation. You should also note the number of customers you have and any repeat customers, bearing in mind that a satisfied customer is more likely to be a customer again, and retaining customers is much better than continually having to find new ones. Also, make sure you ask for customer feedback and written testimonials for your website and other publicity you use.


Analyse Strengths, Weaknesses, Opportunities and Threats (SWOT) on a periodic basis, possibly once or twice a year. Include an evaluation of:

• How did you get your first , and subsequent, customers?

• What led to success?

• What did you find easiest / most difficult?

The Work

Freelance consultancy work can be feast or famine. You will not work 365 days a year and you often will have little control over when the jobs do come in. Therefore, some of your key unpaid activities will be about the Contract Cycle:

Pricing is Key

• Account for all your time.

• A one-hour presentation may take 4 - 8 hours to prepare.

• Include travel time and expenses.

• Your earnings in total have to provide for when you are on holiday and off sick.

• Refer to www.freelancedietitians.co.uk or the FDG pages on www.bda.uk.org for

the latest fee surveys.

• Update your fees annually and be competitive.

• When undertaking media work eg, quotes in press or interviews with journalists,

remember you are also selling your implied endorsement as well as your time, so

charge accordingly. Have a fixed price for all media interviews even if they take 10

minutes.

http://www.freelancedietitians.co.uk/

http://www.bda.uk.org/


The Contract Cycle means that you will need to consider:

*‘Filling the Pipeline’ ie, getting the next job.

*Starting, preferably, after the current job has finished.

*Evaluating why you failed to win or actually did win the contract.

*Balancing ‘Filling the Pipeline’ time versus ‘Fee Earning’ time.

References:

1. Borbon, April. “The rule of ten can boost freelance success” PCG website (www.pcg.org.uk ), 25 June 2012.

2. Developed from www.freelanceuk.com “Why you need a business plan.” 3. “Guide to Freelancing (Version 7.0)” PCG, September 2011, pp.11

August 2012

Contract

Enquiry

ContactProposal

Negotiation

With a solid Business Plan, good business sense and suitable colleague and

customer networks in place, you should be able to grow and develop a

business to suit your needs, and those of your clients and customers.

NOW, go and make that Business Plan a reality!

Now

http://www.freelanceuk.com/

building your business plan - freelance dietitians group · building your business plan ... • do...

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