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We're almost done.

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Now I've covered all the working parts of
my business model.

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So let's look at how that translates into
money.

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As I mentioned in the previous videos, I
can easily obtain our costs by looking at

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the key resources, activities and
partnerships.

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And since I've already completed that,
this should be fairly easy.

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My start-up costs are going to be the
hardware, initial software and

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any other setup costs.

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If I want to be official and

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create a company early on, I'm going to
have those legal costs as well.

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I will also have ongoing costs for
subscriptions that I pay for.

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As well as occasional costs, like
attending conferences, or

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my educational activities and even paying
an accountant during tax time.

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Listing out all these costs helps me
understand my base expenses and

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the kind of revenue that I need to bring
in.

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The last part of my business model is my
revenue.

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Now that I understand my value proposition
better,

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I have a better picture of how to maximize
my revenue streams.

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Going into this my thought was, well yeah,
I'll charge a client, you know, revenue.

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Obviously I'll just, you know, get the
money from them the one time.

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But now the plan is,

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for each client I start with a fixed price
point that's product feature dependent.

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Since I'm targeting a market that doesn't
really know how to maintain their site or

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resolve their problems when they occur, I
can charge a recurring fixed payment for

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maintenance, hosting and any other
services.

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Finally, I can gain additional revenue
from each customer by up-selling.

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Well, that about covers it.

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Let's put this information down in a
better format that suits our

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purposes more.

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To use this as an internal reference, I'm
going to keep it as a mind map,

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which is this diagram I've been drawing
all along.

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If this is something you'd like to do,

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there's a lot of great free mind mapping
software out there.

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If I want to use this for business
considerations,

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I can put together a more formal document
that goes somewhat like this.

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I'll start with a summary.

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In this section, I'm going to list the
profile of my company, general overview,

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you know, name, purpose, legal status, and
so on.

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I can also include what I have already
achieved,

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any clients that I have worked with, and
so on.

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Most business plans then follow with an
industry or market analysis.

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Here's where you list your market size,
your competitors and trends.

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This information is very important,

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because it shows that you understand your
playing field.

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For this example, it's kind of hard to get
that information.

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But if this were anything other than a
freelance business,

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you should be spending a bit of time
gathering all this information.

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Not only does it arm you when going into
business,

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you'll also gain an understanding of what
already works,

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what are existing sales avenues, and
revenue models.

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It's important to know what companies
before you have tried.

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Sometimes, this section is broken down to
industry and competitor analysis.

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It's up to you.

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I tend to put them together,

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since your competitors are part of your
industry anyway.

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Next up, is the customer analysis.

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This section indicates that you have done
all your research about your customer.

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I did that, so I'm just going to list it
out.

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I'm gonna list out my target customers,
their demographic information, and

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the needs of a typical customer.

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All the information I went over when I
explored my customer segments.

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The next big section is our marketing
plan.

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This is where we describe our brand, how
we get our customers to

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know about our product and service, and
how we distribute it to them.

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The information for this section comes
straight from two sections of

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the business model, our channels and our
customer relationships.

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Like we just talked about, my channels are
very traditional.

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So I'm going to rely on a few ads,
word-of-mouth, and a lot of networking.

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Evaluation, purchase, and distribution
happen directly with

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the customer since the relationship is a
one-to-one.

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I'm going over all this briefly, because I
detailed it earlier.

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But you should be writing out each of
these points in as much detail as

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possible when putting together your formal
plans.

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Next up is our operations plan.

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This section goes over the key operational
processes that

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the company needs to undertake to ensure
success.

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In simpler terms, that's our list of key
activities.

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It sounds too complicated to call the
activities of my freelance business

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an operations plan.

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So I'm just going to say key activities in
my plan.

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Remember, a business plan doesn't have to
adhere super strictly to any format, for

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such simple uses.

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Now, we can also break this information
down into primary and

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secondary activities, if we need.

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Lastly, we're going to include our
financial plan.

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This includes the revenue model that we
discussed.

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As well as the associated cost structures.

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Business plans seem like they're designed
for more complicated ventures.

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But as you can see, we can modify it to
suit our needs.

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The goal in this exercise wasn't the
format for the final product, but

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to show you that running through the
business model is the more important part.

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Once you know how all the working parts
fit together,

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it's simple to put that down on paper in
multiple formats.

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My personal favorite is the mind map.

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It helps me keep an eye on the big picture
and it's really simple to implement.

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I hope that the exercise helped you
understand how to

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create your own business plans, regardless
of what you're getting into.

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Good luck with creating your own.