You know how to start a dropshipping business, now you need a business plan to follow.
But first, understand what a business plan is.
What is a Business Plan?
Business Plan is an instructional document in which you outline your goals and the strategies to achieve those goals.
It is a guide that you use to start, running, and growing your business.
In the business plan, the primary focus goes on the capital and the productive usage of that capital to get a positive ROI (Return on Investment).
However, in the dropshipping business, the capital has not had much of a significance.
To create a dropshipping business, you may need to ask the following questions to yourself that includes why, what, and how.
- Why do you want to start a dropshipping business?
- What skills do you possess to scale up this business?
- How can you establish a successful dropshipping business?
A traditional business plan contains several steps that include an executive summary, company description, marketing analysis, product & services, marketing, and funding request.
In dropshipping business, you are most likely to start as a solopreneur or in partnership with a couple of friends.
Therefore, you need some of the steps to follow the traditional business plan.
The drop shipping business is wholly based on physical product selling, here you would mention the plans for selling trending products and how would the products provide value to your customer who would like to pay for it.
Besides, you should also describe the unique selling point of your product, pricing strategy to outrank your competition, production, supplies, and delivery process as well as profit margin expectation.
By getting all these answers, you would have a better visualization of your dropshipping business.
Research and learn about your target consumer base that could become your potential buyer.
Dropshipping business requires a study of projected growth of the products.
To do so, you can use Facebook detailed targeting and Facebook audience insights to estimate the size and potential of your target audience on the largest social media platform.
You can also search on ecommerce marketplaces (such as Amazon, Aliexpress, etc.) to look out for the best-selling product and most sought after categories.
Google trends is also an amazing tool to see how often people search for the product that you are offering. You can see the graph of the trend of up to the last 15 years.
Marketing and Sales
In this section, you will tell your plans on how will you reach and sell your product to your target market.
Show your strategies of advertisement you are planning to use that you will use to target your audience that includes SEM (Search engine marketing), social media marketing (Facebook & Instagram ads) and email marketing.
The simplest way to strategize your advertising is to do a Google search of your competitors business, go through their website, social media channels, and their marketing strategy for their products.
To search for competitors operation you can use some paid source such as Jungle Scout – To understand how it works check out the detail Jungle Scout Review.
Study the competitor’s approaches and take inspiration to make your advertisement plans.
As I said before that in dropshipping business, you probably started your business as solopreneur or in a partnership with your friends.
You should keep the past education, skill, and experience into consideration of yours and your partners that would help to run your business successfully.
You need to assign relevant experience and skills of yourself and your associates in the right places to make full use out of the expertise.
To distribute the workload you might need to hire a VA (Virtual Assistant) to respond on email and handle customer queries.
That’s it, these were the steps that are required in making a dropshipping business plan.
It does not require much capital and fund that you cannot arrange on your own.
You are the boss of this business, so you only need to have a financial projection for yourself.