ISP Business Plan - Part 1: The Basics - continued

Rooted in reality
An effective plan should cover both the best- and worst-case scenarios. Many plans I have seen make statements like "We have no competition," or similar implausible claims. Frankly, when I see claims like these, I tend to dismiss the plan as a whole. One of the things that you are displaying in any business plan is how much research you have done. If you think you have no competition—or no way to fail—you will fail. I guarantee it.

Be realistic. The FCC could wipe out the ISP industry as a whole; as an ISP you need to acknowledge this in your business plan. The key is to present a solution to any problem you identify. For example, if you state that a competitor could duplicate your unique selling proposition, you should offer a counterattacking tactic.

Also, be honest—especially in the organizational structure and management analysis. If you have failed at another business, state this, but also clearly what you've learned from that experience. Nobody is perfect, and problems come up. The key is how you react under pressure.

Where we're going
This article is the first of a series of six on developing a business plan that will appear in the upcoming weeks. The series itself is based on the sample business plan I wrote to help guide ISPs into developing their own. (It is available at HowToSell.net for $50 USD.)

The plan itself is based upon a virtual ISP in Connecticut, but it's a model that many ISPs can reasonably use as a framework. Just as fun facts for a true business plan creation; Time elapsed: 82 hours. Approximate research sources: 32. Total pages including appendixes and footnotes: 35.

Here's an overview of the complete series:

1: The Basics. (You're reading it now.)
2: Industry Analysis, and Market Analysis and Sales Forecast. This article will discuss how to do industry and market analysis and forecast your sales .
3: Marketing Plan. This article will discuss the essential parts to a good marketing plan. It will also discuss strategies, tactics, unique selling propositions and other marketing issues.
4: Operational and Organizational plan. This article will discuss being facilities-based vs. being a virtual ISP, and what you should be looking for in a management team.
5: Financial Plan. Topics include: Cash flow budgeting, income budgets, and all of the numbers that go into budgeting. This section will also cover how and where to get financing.
6: Putting it all together. By the time, you read article six, you should have a complete business plan, and this column will tell you what to do with it next.

So, stay tuned for all six parts. Remember, creating your business plan will be a a big job, but it will pay big dividends in the end and you'll be happy you did it.

—End

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