B2B Business plan for starting your own business
Dealing directly with customers is a hassle, right? Well, due to the integration of monetary chains and dependance of businesses over one another for manufacturing as well as servicing, the B2B businesses are getting high in demand.
If you also want to start a B2B business, you should do a little research, choose the areas in which you want to serve, make a business plan, and launch your startup. For you to understand how to make an accurate business plan, we are providing a B2B ecommerce business plan of a startup namely Networks.
While the business plan for investors developed for Networks can give you a detailed insight into B2B business, you should still consider hiring a professional for the purpose. It is because dealing with businesses involves complexities and strict adherence principles with the agreements and contracts. A professional can take care of even the smallest details while making business plan B2B in a perfect way.
2.1 The Business
Networks will be owned by Max Clint. The business will be based in New York City that is considered as the hub of businesses. The businesses will provide various services in B2B niche including outsourcing, HR services, software services and more. The business activities are expected to go beyond NYC because Clint aims at providing freelance services as well.
2.2 Management of B2B business
B2B business requires adherence to extreme strict standards and therefore, the management of B2B business can be a headache if you don’t follow a proper plan. Before entering the enterprise, you must make a proper B2B SaaS business plan that covers all the management aspects.
To help you, we will document the personnel plan and operational B2B business plan made for Networks. If you are getting a franchise you won’t be the all-in-all decision making authority, and in that case you will have to consult business plan for a franchise for an effective management plan.
2.3 Customers of B2B business
The customers as indicated in B2B ecommerce business plan of Networks are as follows:
- Small Businesses
- Established Enterprises
- Business Franchises
2.4 Business Target
The business targets of the Networks are given as follows in this B2B business plan sample:
- Increase the cost of our services by 3% after 3 years of the launch while retaining customer base
- Earning a profit margin of more than $50k per month by the end of the first 6 years
3.1 Company Owner
Max Clint, the owner of Networks, has worked as a business consultant for more than 5 years. He is known to be expert in legal business matters and management.
3.2 Why the B2B business is being started
The B2B is started because of Clint’s experience and interest in the field. His qualification, co-curricular activities, and a desire for excellence have driven him to start this business.
3.3 How the B2B business will be started
Step1: Develop Business Plan for B2B sales
The first step to step into this business is to create a B2B business plan template. For that you should explore what is B2B startup and read some B2B business plan examples. In a B2B startup business plan you should include your strategic plan, financial plan, customer segments, and marketing analysis.
Step2: Create the Brand
Since many B2B businesses are already running in the United States. You have to come up with exclusive ideas and expertise to become renowned in the market. To create a brand image, you should have highly specialized employees and success stories.
Step3: Establish Web Presence
In the information age, services are searched for on the web rather than on paper. Therefore, you must ensure that your business comes in the top lists of searches. For that you would need to hire SEO experts, graphic designer, and a web developer.
Step4: Develop & Market
The last step is to establish your company physical presence and market your venture to reach a maximum number of customers.
|Research and Development||$12,000|
|TOTAL START-UP EXPENSES||$236,720|
|Other Current Assets||$221,000|
|Start-up Expenses to Fund||$236,720|
|Start-up Assets to Fund||$827,100|
|TOTAL FUNDING REQUIRED||$1,063,820|
|Non-cash Assets from Start-up||$1,076,600|
|Cash Requirements from Start-up||$121,100|
|Additional Cash Raised||$51,400|
|Cash Balance on Starting Date||$35,100|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$64,520|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,063,820|
|Loss at Start-up (Start-up Expenses)||$141,660|
|TOTAL CAPITAL AND LIABILITIES||$1,284,200|
Strategic/Operational Business Plan
Services of B2B business
The service sector of B2B businesses is multi-faceted. Therefore, while developing your B2B SaaS business plan template you should specify which services you plan to provide. You can study many B2B business plan examples for the purpose and explore their B2B marketing strategies examples for each service they provide.
You can also see the services given in this B2B business plan sample. This B2B business plan was created for Networks by professional business plan writers after probing several B2B business plan templates.
- Doing Outsourced Tasks
Our major service will be doing outsources tasks such as hiring and training the workforce, maintaining the equipment, and completing some parts of a larger project.
- Business Consultancy
We will provide legal advice and consultation to businesses who come to deal with other businesses. We will also help writing business plan documents https://www.ogscapital.com/article/document-shredding-business-plan-sample/ and making due diligence template. Moreover, our consultation will also be educational as we plan to acquaint our partners with latest trends such as type of due diligence in use.
- Software Services
We will also provide software services but only in the domain in which multiple businesses are connected via shared database and management software.
- Freelance Services
We will serve as the middle ground between clients and customers to provide B2B freelance services.
Marketing Analysis of B2B business
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Your B2B business can end in loss if you fail to attract the community that was supposed to buy from you. To succeed in the purpose, you have to explore the market for which you are making B2B sales business plan. you have to see which services are in demand and how much competition exist for which service. All these details must be included in your marketing plan for B2B business.
Today, carrying out a market analysis is easier due to online presence of B2B businesses. You will have to maintain a web presence and thus your marketing plan for B2B business should be devised accordingly.
To gain an insight into marketing plan template B2B, you should visit B2B marketing portals. Some sites even offer free B2B website in usa. Moreover, you can also find free guidance on B2B marketing planning from blogs like this on marketing plan B2B example.
5.1 Market Trends
The trends for B2B businesses are going great. It is reported that more than 50% of B2B buyers are millennials. The industry is currently estimated at 6.7 trillion dollars. Moreover 35% of the already-established B2B businesses are expecting a significant rise in online sales by the next years.
The trends provided in this sample B2B marketing plan are general. And while developing your B2B marketing business plan you should study the trends specific to your area.
5.2 Marketing Segmentation
Identifying the groups of target customers help you determine a focused strategy in B2B marketing project to target them. For a B2B company, customers can belong to various niches therefore it will be good to also explore some more business plans such as mobile notary business plan pdf.
In this example B2B marketing plan, the customer segments identified by Networks are given as follows:
5.2.1 Small Businesses & Startups
Our biggest customers will be the small businesses that are specially newly established. New startups find it difficult to undertake all the tasks and recruit a huge workforce. Therefore, they rely on other businesses. In addition, due to lack of trust in the financial stability they find it difficult to enter into long-term contracts with large enterprises. With our B2B services, they will be able to develop their businesses.
5.2.2 Established Enterprises
The second biggest category of our target customers include the established enterprises. They would require our services to deal with their business partners. Moreover, they will also seek our services to maintain a skilled workforce at all times.
5.2.3 Business Franchises
Business franchises would also need our services to get business plans and to do successful contracts.
Industries whose inputs and outputs are procured and transferred to enterprises will also need our B2B services to conduct their business affairs.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- Increase our prices by 3% by the end of first 6 years
- Maintain a CSAT score of 95+ from the very first month of our launch
- Maintain a Customer Retention Rate of more than 80% from the very first year of our launch
5.4 Product Pricing
The rates for our services are a little bit higher than our competitors. However, due to our competitive advantages, we still expect to get more customers than them.
Marketing Strategy of B2B business
While developing marketing strategy in B2B, you must keep in mind that this time you are not dealing with a man in the street, rather you will be dealing with experienced professionals. Therefore, your sales strategy and advertisement techniques should be devised accordingly. In this B2B marketing strategy example, we are providing the sales strategy of the Networks.
Clint spent a whole 3 months into devising his strategy in his B2B marketing template. Some parts of his plan are mentioned here in this B2B marketing strategy template.
6.1 Competitive Analysis
- We are using the latest tech for all our tasks. For instance, we present digital cards to our business partners to leave the impression that at Networks, we are acquainted with all the latest products and trends.
- We have hired the most competent and talented business experts in the town.
- We have pursued regular training programs to keep our employees up to date.
6.2 Sales Strategy
For advertisement, the Networks will do the following:
- Advertising the business on social media and through newspapers and magazines
- Arranging meetups among the business CEOs and our sales executives to let our competitive aspects known
- Providing a 40% discount on all our services for the first month of the launch
For more ideas, you can see law firm business plan and judgement recovery business plan https://www.ogscapital.com/article/judgement-recovery-business-plan/.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||1,250||1,325||1,405|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$455,000.00||$530,530.00||$590,479.89|
Personnel plan of B2B business
The success of a B2B business depends on the ability of its employees to conduct affairs. To ensure you hire the right people, you should devise a measurable criterion in your business plan for B2B. In your business plan B2B you can assign measurable values to experience, inter-personal skills, and qualification to make sure the recruitment remains impartial
In this B2B business plan template the list of staff of Networks along with their salaries is listed below:
7.1 Company Staff
- 1 Co Manager
- 1 Web Manager
- 1 Sales Executive
- 1 Software Manager
- 3 Business Consultants
- 1 Legal Advisor
- 2 Project Managers
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
Financial Plan of B2B business
The B2B business has great prospects in the earning domain. The business pays a lot due to immense opportunity arising out of increased dependency on other businesses for completing a task. The modern world works on the principles of efficiency and for greater efficiency outsourcing a part of one’s business is becoming a must.
Therefore, the business is sustainable as far as finances are concerned. However, to ensure long-term smooth monetary flows, you need a business plan for B2B sales. Since you will be spending a hefty amount on salaries and for maintaining a skilled workforce at all times, you need to be careful about the b to b sales strategies.
In this B2B sales plan template, we are providing the financial plan of Networks. In addition to the profit profile, if you also want to know what is B2B marketing and sales, you can refer to the sections written above.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$455,000||$530,530||$590,480|
|TOTAL COST OF SALES||$455,000||$530,530||$590,480|
|Gross Margin %||77.56%||78.72%||80.74%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$400,350||$426,715||$461,492|
|Profit Before Interest and Taxes||$1,172,150||$1,535,769||$2,013,439|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- What is B2B business plan?
A B2B business plan is a detailed document that explains the major aspects of your business, how you plan to start and run it, and where and how much you intend to spend to ensure long-term sustainability.
To get a better idea of what a B2B business plan template is, you should study some B2B business plan examples. For a generic idea, this B2B business plan sample is also good to go.
- What are the 4 types of B2B?
The 4 types of B2B markets are:
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