Cris, I don't know you but I just read your thread. I think your idea is awesome. But (yes, a big BUT), you need to put a sort of a framework to it. I have developed business and market entry plans, so if you don't mind I can give you a short guide on how to go about everything (from scratch to finish).
1.
GAP analysis
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Identify your Target Group: This is the first and foremost thing you do before you begin any business. Who is your TG? What are their characteristics? In your case, you have outlined your TG as single parents. But that's not enough - you need more details. Here are some questions you may want to ponder over - is it male, female or both? What about the age group? What about the location (rural, urban or 5 mile radius from where you live)? How about their income levels (try identifying a particular socio-econimic category)? How about their education levels? How about their psychological/lifestyle characteristics? For example, a single mother, aged 35, living in New York, earning about USD 150,000 as a Senior Business Analyst with McKinsey would have different needs from a single father, aged 55, living in Texas, earning about USD 60,000 as a local grocery assistant. My suggestion is that you identify the TG that you can easily connect with since you will be doing the "concept selling" initially. Also, make sure that this TG is sufficiently present - there's no point in starting your business if your customers are only 5 or 10.
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What does your TG need? What kind of services/assistance would they require? What is the medium of delivery (online, offline or both)? Does it call for manpower, financial or material investment? Would you need any specialists to meet their requirements (like, plumbing, nursing, tutoring, car servicing, etc.)? Get them to prioritise the services (1, being top priority and so on). You will need to do some primary market survey here by preparing a simple questionnaire and talking to other single parents in your area. At the same time, try and estimate on the size of your TG - how big are they? You can either extrapolate any available information or you can obtain it from a reliable source (local govt., community center, school, etc.).
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Study the existing market: - who are the existing players catering to your TG? What are they offering them? What are the limitations in their services vis-a-vis the requirements of your TG? How do they fund their operations (both, capex and opex)? Are they manpower-intensive or capital-intensive? These questions will help you identify the gap in the existing market (i.e. TG's benefits wanted vs TG's benefits received). Make a list of all this, as this will be your USP (Unique Selling Proposition) when you launch the business.
2.
Your business plan
Now that you have identified your TG, their needs and the gap in the existing market you can sit down and start working on the business plan. Here are some steps to follow.
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The essence of the business: This is nothing but 'the why, the what and the how' of your business. Why does the business exist? What does it want to do? How does it do what it wants to do? Trust me, this is the toughest part of developing the business plan - but you have to keep it short and simple (max. 20 words each).
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Mission and vision statement: The mission statement is an old concept, but the vision statement still holds true. This outlines the scope for your business - how far can it grow/expand in the future (think, 10 years or longer). For example, an low-cost airline's vision statement should be 'Our vision is to provide low-cost transportation to people.' Note that I did not mention anything about flying here. This is because tomorrow they can move on to other forms of transport (albeit low-cost only) - rail, shipping, coach, etc. Basically, the vision statement will help the company grow and adapt to the changing needs of its TG.
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Your USPs: Although this usually is part of the marketing plan, it is fine to include this in your business proposal since your business will be offering only one kind of service to begin with - i.e. providing support to single parents. The USPs should have already been identified when you did the GAP analysis. So you will just have to list them out. Try and keep them to a maximum of 3 (or 5) USPs that are feasible for your business keeping in mind the constraints (financial, manpower, skill levels, etc.). These USPs should cover the top-priority but unmet requirements of your TG.
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The funding: You will need funds to run the business, no matter its size. How are you going to fund it? Even if you have a startup capital, you will need funds for your capital and operational expenses. How will you meet them? Can you get an SME loan from a bank? Can you ask an angel investor? Can you pull together a group of 2 or 3 people who can chip in their part so that you get a good fund to cover a year's expense also? How about donations?
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The source of revenue: Okay you have covered the funding aspect. But how will you keep the revenue flowing in? Eventually you will have to pay off the fund-givers (even if it is yourself!). And you will also have to meet the ROI (return on investment) expectation for your fund-givers. ROI is nothing but this - if I invest USD 1,000 in your business and you give me USD 100 every year, then my ROI is 10% (i.e. ROI = money returned/money invested % = 100/1000 % = 10%). Depending on the industry, the ROI varies. For e.g., in healthcare it is about 10% to 12%.
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Resources/assistance required: To complete the business plan you will need to provide a list of the resources/assistance required. What will you need to begin and then run the business? You may need - an office space to print on your visiting card, a small car to drive around and meet people, a computer with a printer and modem, minimal office furniture, another coworker to help you run the business, etc. If your funding is limited, I suggest that you start small and then grow your expenses as your business grows. Try and signup a close friend who has loads of time to spare and is willing to work for a minimal amount.
3. The other plans
After the business plan is chalked out, move on to the other plans - the marketing plan, the finance plan, the operations plan, the HR plan, etc. Please keep in mind the following points
- Always ask yourself 'How can I delight my customers?' You may be starting a small self-help group for single parents but even they are your customers. Always, always, keep in mind that they are your customers and your business is to keep them happy.
- The closer relationship you build with your customers the more easily they will remember you when they need anything. For example, they may even start nagging you about starting a school for single parents' children! Of course it may not be possible immediately, but quickly note it down. Sooner or later you can start if there is a good demand and the time is right!
- Avoid using big-ticket media spends. Try the unconventional media first. Again, it comes back to your TG. If your TG are not internet-savvy, opening a Facebook page will not get you the coverage that you are looking for. It would just give you junk enquiries that would only waste your time and effort.
- Before you start any marketing activity, always ask 'Will it bring me one step closer to my TG?' If yes, then plan about how you will do it (and if it is profitable to do it). If not, then drop it.
- Remember that you are not a charity organization. You would like to offer a service for your customers, but there has to be a payment for it. Either in the form of man hours, or money, or assistance, any way you can think of that they will appreciate!
- Please do not start off by giving out financial assistance. Not even in the form of 'please donate to xyz for this activity'. You don't want your business to be an informal money lender. Worse, you could run into problems with litigation or the tax authorities. Please, please stay away from any form of financial assistance either direct or indirect.
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There ends my long (but hopefully, interesting) response. I hope that this was informative enough for you. If you want me to clarify or guide you on something do let me know. I will be happy to answer your questions.
I will pray that this takes off well and that God makes your business a blessing to many!
