Starting a Playgroup Business
New Playgroup Business owners often have the same concerns as new parents.
- Will I be successful?
- Who has done this before and can advise me?
- Where will I get the financing? What help is available, and how much will it cost?
All those concerns seem to hit at once.
Most of those who succeed in starting a Playgroup Business have planned for every phase of their success. Thomas Edison said, "Genius is 1 percent inspiration and 99 percent perspiration."
That same philosophy also applies to success in any Playgroup Business.
To enhance your chances for success, first generate a little bit of that perspiration to eliminate the most common mistakes new business owners make. According to the experts, most novices should spend a great deal of time researching their potential businesses and the marketplace.
Before starting a Playgroup Business Plan you must be able to answer these basic questions
- What niche or void will my business fill?
- What services or products will I sell in my Playgroup Business?
- Is my idea practical, and will it fill a need?
- Who is my competition?
What is my business’s advantage over existing Playgroup Businesses?
- Can I deliver a better quality service?
- Can I create a demand for my business?
And once you have answered these then consider:
- What skills and experience do I bring to the Playgroup Business?
- What will be my legal structure?
- How will my company’s business records be maintained?
- What insurance coverage will I need?
- What equipment or supplies will I need?
- How will I compensate myself?
- What are my resources?
- What financing will I need?
- How will I pay it back?
- Where will my business be located?
- What will I name my business?
Some questions you will be able to answer on your own. Others will require careful research. There are many sources available to help you find the answers and make informed decisions.
- tade association studies,
- journal articles and
- trade shows;
- regional planning organization studies on growth trends;
- realtors and insurance companies; and
- customer surveys in your market area, which you can conduct on your own or which may already exist.
The Business Plan
Your Playgroup Business Plan should cover the business basics from goals to management, from marketing to operations. A business plan is a blueprint for success, so don't scrimp on the details. A good business plan covers the following areas:
- Describe in detail the business and its goals.
- Identify the business ownership and the legal structure.
- Discuss skills and experience you and your partners bring to the business.
- Identify advantages you and your business have over your competitors.
- Explain how the business will be managed on a day-to-day basis.
- Discuss hiring and personnel procedures.
- Discuss insurance, lease or rent agreements, and issues pertinent to your business.
- Account for the equipment necessary to produce your products or services.
- Account for production and delivery of products and services.
- Describe your product or service.
- Identify the customer demand for your product or service.
- Identify your market, including its size, location and demographics.
- Explain how your product or service will be advertised and marketed.
- Explain your pricing strategy.
- Explain the source and amount of initial equity capital.
- Estimate start-up costs.
- Project operating expenses.
- Develop a monthly operating budget for the first year.
- Develop an expected return on investment and monthly cash flow for the first year.
- Provide projected income statements and balance sheets for a two-year period.
- Discuss your break-even point.
- Explain your personal balance sheet and method of compensation.
- Discuss who will maintain your accounting records and how the records will be kept.
- Provide "what if" statements that address alternative approaches to problems that may develop.
Understanding Your Market
Market evaluation is critical and provides the basic data that will determine if and where you can successfully sell your product or service. This process involves defining your goals, scrutinizing your competition and your customer base, and interviewing potential suppliers. The information collected can help you, if necessary, adapt your product or service to better meet customer needs. Market research can help you:
- create primary and alternative sales approaches to a given market,
- make profit projections from a more accurate database,
- organize marketing activities,
- develop critical short- and mid-term sales goals and establish the market’s profit boundaries, and
- identify what makes your business different from similar businesses with similar products.
Questions To Ask
Your research should answer these basic questions:
- Who are your customers?
- Where are they located?
- What are their needs and resources?
- Is the service or product essential in their operations or activities?
- Can the customer afford the service or product?
- Where can you create a demand for the service or product?
- Can you compete effectively in price, quality and delivery?
- How many competitors provide the same service or product?
- What is the general economy of your service or product area?
- What areas within your market are declining or growing?
If you plan to succeed then you must plan!
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||A2Z Business Plans providing a general Playgroup Business Plan. The plan contains information that can be used for any business location in the world.