Coming up with an amazing business idea is incredibly exciting and inspiring. While it may be tempting just to jump right in and get started, it often helps to take a more calculated and strategic approach.
Creating a business blueprint acts as a solid foundation for a successful business. Here’s what you need to know about business blueprints and how you can create one for your potential business idea.
What Is a Business Blueprint?
A business blueprint is a strategic plan describing what a business is all about and how it works. It can be as detailed or as general as you want; however, the more specific it is, the more useful it could be for actually running your business.
Essentially, the work you put into your business blueprint is what you’re going to get out of it. But why do you really need to put in the work?
Why Do You Need a Business Blueprint?
For starters, a business blueprint helps you launch and successfully run your own business. Such a document is extremely beneficial, especially if you don’t have much previous business experience. Running a business is a journey, and your blueprint is something that you can go back to time and again to help you make difficult decisions on what direction to take your business.
On the other hand, a business blueprint also helps you secure funding for your business idea. This is because taking the time to sit down and create a business blueprint shows potential investors that you’re serious about this.
A well-thought-out and professional plan go a long way toward impressing investors and securing start-up funds for your business when you really have nothing else to offer.
How to Create a Business Blueprint?
There are several different ways you can create a business blueprint. With so many different components involved, it often helps to take a simplified and strategic approach.
One of the best approaches is known as the “4 Ms” method that covers money, methods, machines, and manpower.
1. Money
Your first section needs to focus on money — as this is one of the most important components when starting a business.
This section needs to discuss things like budget, cash flow, financial systems, point-of-sale systems, banking, taxes, and auditing.
- Funding: Are you self-funded, or do you need outside funding? How much money do you need to start off? How are you going to find investors? How are you going to pay your investors back?
- Budget: How much money do you have to work with? How are you going to spend your money? Where should you splurge, and where should you save? What can you do in the event of budget issues?
- Point-of-sale systems: How will you accept payments from customers?
- Banking: Where will you open up a business account? Will you need to apply for business lines of credit? Do you qualify for business lines of credit?
- Taxes: How will you file your taxes? Will you hire a bookkeeper or accountant? How will you maintain and organize your receipts?
- Auditing: How will you protect yourself in the event of an audit?
2. Methods
Your second section needs to focus on methods — how you’re going to run your business. It can be hard to detail these methods before you actually begin your business, but it helps to outline different areas, including day-to-day operations, industry standards and regulations, quality of service standards, environmental standards, and social responsibility guidelines.
- Day-to-day operations: What do your daily operations look like? How are you going to structure your operations? Who is going to do what within your company?
- Industry standards and regulations: Are there any industry standards or regulations that would affect how your business is run? What is the best setup for your business in terms of type, certifications, memberships, etc.?
- Quality of service standards: What quality of service standards are you setting? How will you meet these standards?
- Environmental standards/social responsibility guidelines: Are environmental and social standards important for your business? How will you meet these standards?
3. Machines
Your third section needs to cover machines — how you will produce your products or provide your services. In this case, however, machines go beyond just production. This section should cover everything from facilities to equipment, vehicles, telecommunications systems, technology systems, insurance, security, and inventory.
- Facilities: Where are you going to operate your business? Do you need secondary warehouse space for storage and production? What are your hours of operation?
- Equipment: How are you going to secure the necessary equipment? Where are you going to put and store it? How much does it cost to run and maintain? What safety policies need to be in place?
- Vehicles: Are any specialized vehicles needed to transport your products? Do you have the right drivers for these vehicles? Where are these vehicles going to be parked when not in use?
- Telecommunications systems: How are you going to communicate within your business? Are you going to have a single phone, or do you need multiple different devices for different employees? Do you need an automated system to direct callers?
- Technology systems: What software do you need to run your business? What types of computers do you need to utilize your software? Do you need dedicated IT support?
- Insurance: How are you going to protect your business against loss and liability? What different insurance policies do you need to cover all of your assets?
- Security: How are you going to secure your business — including people, machines, and products.
- Inventory/supplies/procurement: Does your inventory require special storage? Does it require any special fixtures? How are you going to protect your inventory while in storage?
4. Manpower
Your fourth and final section needs to cover manpower — who you’re going to partner with to run your business since you definitely can’t do it all on your own! This section needs to include areas like suppliers, customers, and staff.
- Suppliers: Where are you getting the supplies you need to produce your products? Do they offer competitive rates and timelines? Do you have backup suppliers ready to go if needed?
- Customers: Who are your target customers? How do you reach them? What are they looking for? How will you meet their needs?
- Staff: How will you build your staff? What skills and experience are you looking for? How will you train and pay them? How will you schedule them?
The Rundown on Business Blueprints
As you can see, business blueprints help you and your business in countless ways both before and after launch. However, a business blueprint is only one component of running a successful business. If you’re looking for other ways to grow your business, then you need to work with Greg Gillman.
Greg Gillman specializes in omnichannel growth strategies for direct-to-consumer brands. He has helped his clients generate more than $4 billion in revenue thanks to his expertise. Although he has worked with big brands, he also knows what it’s like to be a small business just starting out.
As a result, he can help you employ the right strategies and address any challenges that come up along the way.
Sources:
5 Ways of Funding a Business | Forbes
