Business Plan Writer for Companies Raising Capital

Using Your Business Plan To Make Your First Million Dollars In Business

Using Your Business Plan To Make Your First Million Dollars In Business

There are millions of small business owners within the United States and around the world. According to the U.S. Small Business Administration, only about 41% of small businesses survive for at least seven years — never mind making it big.

Businesses are able to use their business plans in order to get an advantage. There are four steps to using your plan to earn millions.

1. Select the right business. Are you in the right business that can help you earn millions? Are you truly in a million dollar business. If you select the wrong business, then it will be nearly impossible for you to achieve your dreams.

In the Forbes article, Why More Americans Are Breaking $1 Million As One-Person Businesses, New York City dad  Jeff Sadowsky started off with the wrong business. He began selling decorative ribbons online; however, that business was struggling. During a conversation with a stationery entrepreneur, Jeff learned that the successful entrepreneur’s bread and butter was napkins. Jeff quickly pivoted to selling napkins and           used Google Adwords to attract traffic to his website. Eureka! He grew a seven figure business.

So the first step to success is selecting the right business. Ask yourself if this opportunity can grow to a six figure, successful enterprise. Ask yourself if it’s a scalable business. Will you be able to add employees and processes to the business? Starting and growing this type of enterprise isn’t for everyone. Not all entrepreneurs managing employees, constantly hiring staff, letting certain people go you know, etc. But if you’re that type of entrepreneur, then leap to Step 2.

2. Do the Math. Yes, you may hate math but having a thriving business depends on math. Don’t worry – there will be no trigonometry equations here. We’re talking simple addition, subtraction, multiplication and division.

Calculate how many units you must sell to make $1 million. For example, if you have a subscription service (or a service with a monthly fee), divide $1 million by the average amount of money each customer spends.

I’ll give you a great example. Let’s say you offer SEO or digital marketing services. Your average client pays you $1,000 per month (or $12K per year). Divide $1 million by $12,000 and you’ll discover that you only need 83 clients to make $1 million.

Doing the math is that simple. After you calculate this, your next question is…  “How do I get 83 clients?” which goes to step three which is creating your marketing plan.

3. Create Your Marketing Plan. Once you’ve determined how many clients you need, it’s time to write your marketing plan. The purpose of your marketing plan is to attract leads and convert them into paying clients. What methods will you use to attract leads? It depends on the type of business you have. Whether you use Google ads, search engine optimization, social media, networking, or inside sales, you want to select the best 3-7 methods that help you attract clients.

When my mother got started with her business her bookkeeping business, we did a lot of networking. As an accountant, it was essential for people to feel comfortable with her. Our marketing plan consisted of us selecting two organizations (including our local Chamber of Commerce) and becoming heavily involved in those organizations. That’s how we attracted clients.

4. Figure out how much time and money you need to invest to build your million dollar business. You will put money in and then you’ll get some revenues. Then you must reinvest that money.

There are 2 items that will be the majority of your budget – marketing and payroll.

When we started our bookkeeping business, we joined 2 networking organizations and went to 2-3 events per week. It wasn’t free. WE invested money in gas, entry fees, membership fees, etc. It’s important to have a budget for these items.

Payroll includes your staff, independent contractors, virtual assistants, and others who will help you “buy more time.”

It’s also important to think about the time you’ll invest in growing your business. I have a simple rule for companies that have little to no revenues – spend at least 50% of your working time on activities that puts you DIRECTLY in front of prospects or referral partners. If you are working on your business 40 hours per week, you should spend 20 hours per week at networking events, hosting Facebook, YouTube or Instagram Lives, emailing LinkedIn connections that could become prospective clients and scheduling time to speak with them by phone (try to stay away from impersonal blasts), volunteering at your local Chamber of Commerce or an organization filled with your prospects, speaking with leads on the phone, etc.

Getting your first million dollars in business requires a good strategy and excellent execution. It requires persistence.

You don’t have to write a 50 page plan to be successful. If you’re not raising funds, a simple 1-2 page plan will suffice.

Need help writing your business plan, contact me at theprofitpartner.com.