A light entrepreneur’s business plan and drafting it

20.12.2021 | FREEkly news EN

Light entrepreneurship is a good way to try out your business idea. So that the business idea is clear for the entrepreneur as well as the future clients, it is useful to draft a business plan. In the business plan, the effectiveness of the business idea is tested and it is considered how it will work in practice. If the light entrepreneur feels it is functional, they might consider starting a business.

In the business plan, the operation of the company is described primarily for the entrepreneur themself. For a business, a business plan is required for example when applying for a start-up grant. The business plan should be updated as the business develops.

The advantages of a business plan for a light entrepreneur

Light entrepreneurship itself is a risk-free way to make a living. Nevertheless, drafting a business plan may bring more certainty into your knowledge and selling it. The plan might also increase the motivation when the starting points are up to date. With the business plan, the entrepreneur can monitor the operations of the business comprehensively and prepare for possible challenges. Whether you’re a sole proprietor or a light entrepreneur, a business plan is definitely useful.

Tips for drafting a business plan

1. A business plan means developing the business idea and testing how it functions. To begin with, it is useful to consider what the business idea is and how it works in practice. A clear business idea supports the business plan and helps in the drafting.

2. Every business idea is different, and they primarily exist for the entrepreneur. That’s why it is useful to prioritise the parts that the entrepreneur feels are important.

3. The background work for the business plan makes drafting it smoother. Information is needed for recognising clients and competitors.

Instructions for a light entrepreneur’s business plan

1. To begin with, briefly describe your business idea. Write down your business idea and consider how to describe it to a person who doesn’t know what kind of business you’re starting.

2. Consider your knowledge and describe your skills. What is your starting point when becoming an entrepreneur? What kind of knowledge, training or experience have you got already?

3. Note your current strengths, weaknesses, opportunities and threats. This is called a SWOT analysis with which you can mirror the current situation to future goals. Is it possible to overcome the weaknesses or turn them into strengths? How to prepare for possible threats?

4. Next, describe what you want to offer your clients as a light entrepreneur or business. What kind of products or services are you selling and how are they useful for your client? Furthermore, make a preliminary review of the prices and calculate your own prices with the FREE.fi calculator.

5. Recognise your target groups. Consider who you’re selling your product or service to. What is your ideal client like and how many of them are there? Take the needs of your clients into account as well. Segment the most potential target groups and create a fictional client person for each client segment.

6. Make a marketing plan. (Here you can find instructions.)

7. Recognise your operating environment. Who are your competitors? How can you stand out, i.e. what is your competitive advantage?

8.Determine your vision, i.e. your view of the long-term target situation as a light entrepreneur. The vision is meant to give you direction and be reachable.