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A good, strong first step in any enterprise is to draw out a business plan, and this will be mandatory if you plan to ask for funding from the bank or the Small Business Association. But even if you fund your business out-of-pocket, a business plan forces you to think about how you will conduct yourself professionally, what your expectations are for the work that you do, and whether you have a realistic idea of how to achieve your goals.
So how does one go about writing a business plan? The SBA offers good guidelines and there are various sites on the Internet that will offer sample plans you can tailor to your needs http://www.sba.gov/starting_business/planning/basic.html.
The basic process is comprised of two parts, a narrative that describes your business and introduces you and your skills to the reader, and a financial breakdown of what money you have to work with, how you spend it, and what you plan to earn.
Following the SBA guidelines that SCORE volunteers use, the business plan follows a conservative route. They all begin with an executive summary, which is a concise look at what you want to convey. The executive summary is written last and explains everything that has gone into the plan, something a banker will look at to decide whether it is worth reading or not, so it should be short but contain a lot of pertinent information.
Next you need to explain your product or service. Don't assume someone knows what you do. Introduce the reader to the process of buying and selling books, the software you use that makes your work efficient, and how you go about conducting the daily routine of your business: how you balance the buying, listing and selling of books. If you work from home, describe your work conditions, the hours you keep, and how you balance family and work time.
The reader of your plan will want to know about the price, quality and benefits of your product or service. Think about what makes your books more attractive. Do you undercut the current market? Do you use software to check prices? Is it the unique quality of your inventory that lures customers to your site? What is your customer service like? How do you insure that you acquire the best stock available?
You must next let the reader know what stage your business is in. Are you new to the market? Have you done bookselling part-time and are now going full tilt? Is this a long-standing profession for you that now require some capital funding?
You will be expected to supply letters of reference. Have you done business with a company that supplies packaging materials, maybe a bookseller that you have a relationship with, or even community leaders who know you for some civic service (like volunteering at a library sale), etc?
Bookselling is an industry like any other, and the business plan will call for market data. The best and most current study is one compiled by Susan Siegel at Book Hunter Press and sells for $25. This overview of the bookselling world will give you the facts you need to explain how large a market exists and where you fit into the mix.
If you've conducted business in the past, you may have a good idea of how many books you can sell. Be realistic in your projections, laying out how many books you can acquire and list and what impact this has on sales. Explain about what sales venues you employ and their strengths in the market. If you've only sold on smaller sites, you can speculate what increase you will experience by loading your database onto Abe or Alibris. You will need to outline your current customers.
Go into more detail about your strengths and weaknesses. Are you organized? What skills do you possess? If you lack expertise in programs like Excel or Access, you can explain here what courses are available (free or paid) in your area and if you intend to increase your skill level. What experience in other jobs can be employed that help you sell books online? Do you type well? Do you have research skills?
You will also need to explain how you intend to market yourself. If you think you don't need to advertise because you subscribe only to large services, think again. You will need to let people know you buy books. And it doesn't hurt to let people know you sell books. Will you run ads in local papers or on the radio? Will you do appraisals for charity to get your name in the paper? Maybe you have a plan to contact local lawyers to ask them to consider calling you when estates need to be liquidated. Think creatively about how you will take the lead in your area.
At some point you will have to go into greater detail about how you will use the money you are requesting. Will it go into renovating an office, buying books and shelving, or opening a shop? Create a budget, get estimates, and detail how the money will be spent. You must add what you have already paid out of your own pocket to meet your goal and what you will continue to fund. Be certain of a timetable that is realistic.
Most banks will require the past three years of tax returns, professional resumes, and it doesn't hurt to add pictures to the business plan. If you work at home and your workspace is orderly, well lit, efficient, then show them. If you possess a wonderful collection of books that are neatly shelved or you have a shipping table with your supplies nearby and a stack of books ready to be mailed, this will convey a lot about what you do.
Don't be afraid to include past publicity, awards, or anything that demonstrates your commitment to excellence.
It is a process that takes a lot of work but it will be work worth the effort if you can obtain funding for expansion or to help you make a beneficial change in the way you do business. Even if this is something you never need to do, it is a process that allows you to assess what you do and makes you think about ways to do it better.
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