Table of Content

    Virtual assistant business plan for your own VA service

    Are you planning to open a virtual assistant business? Nowadays, having a VA for your business is essential to be successful. Entrepreneurs, startups and small business owners struggle with common problems from time, creativity, technological knowledge, organization skills, lack of staffing and directions to mention but a few. Virtual assistants assist you to ruin your business smoothly, balance and securely. According to research, many people across the United State agree there are many benefits of virtual assistants. More than 60 percent respondents indicate convenience in daily life by using VA services.

    Executive Summary

    2.1 The Virtual Assistant Business

    The Virtual Assistant business will be registered using the name Working Bee and will be situated in San Francisco, California. The business will be owned by Nellie Daniel who is an experienced virtual assistant.

    2.2 Management of Virtual Assistant Service

    Nellie Daniel manager and owner of Working Bee is an expert virtual assistant who has worked extensively in the virtual assistant industry for over 20 yrs. During her career, Nellie worked with top Virtual assistant companies across the United States. Considering her extensive VA experience, it wasn’t a challenge for her to come up with a virtual assistant business model.

    2.3 Customer Focus

    Prior starting a virtual assistant business, it is essential to have an in-depth understanding of your local VA market and analysis. Working Bee plans to set up its operation in a strategic location with many entrepreneurs, startups and small business owners. Nellie plans on starting a virtual assistant business checklist to make sure the business starts on the right footing to be successful.

    2.4 Business Target

    Working Bee plans to offer virtual assistant services to a wide range of customers around the facility. Working Bee intends to come up with a creative marketing approach to stay on top of competition and get good market.

    Virtual Assistant Business Plan - 3 Years Profit Forecast

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    Company Summary

    3.1 Company Owner

    Nellie Daniel is an experienced virtual assistant specialist with a successful career journey in the VA industry. Having worked for different companies across the United States, she understands the necessary procedures on how to start virtual assistant business.

    3.2 Aim of Starting the Virtual Assistant Business

    Nowadays, small businesses and entrepreneurs need to outsource some of their responsibilities to VA companies for their businesses to grow. The fact that virtual assistants contribute a lot to business growth has made many people opt to use them. With VA trend sweeping across the U.S. Nellie thought it was the right time to start a virtual assistant company to address the market needs.

    3.3 How the Virtual Assistant Business will be Started

    With over twenty years’ experience in the virtual assistant industry, Nellie Daniel enjoys great experience in the industry. For this reason, she has a keen understanding on what is required to start the business. After carefully studying virtual assistant trends, Nellie has worked closely with experts to come up with a detailed financial plan.

    Virtual Assistant Business Plan - Startup cost

    Start-up Expenses  
    Legal $3,000
    Consultants $2,500
    Insurance $23,000
    Rent $13,000
    Research and Development $30,000
    Expensed Equipment $14,000
    Signs $5,000
    TOTAL START-UP EXPENSES $90,500
    Start-up Assets $0
    Cash Required $112,000
    Start-up Inventory $43,000
    Other Current Assets $24,000
    Long-term Assets $8,000
    TOTAL ASSETS $23,000
    Total Requirements $25,000
    START-UP FUNDING $0
    START-UP FUNDING $120,000
    Start-up Expenses to Fund $40,000
    Start-up Assets to Fund $30,000
    TOTAL FUNDING REQUIRED $0
    Assets $20,000
    Non-cash Assets from Start-up $14,000
    Cash Requirements from Start-up $0
    Additional Cash Raised $56,000
    Cash Balance on Starting Date $20,000
    TOTAL ASSETS $0
    Liabilities and Capital $0
    Liabilities $0
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $0
    Capital $0
    Planned Investment $0
    Investor 1 $50,000
    Investor 2 $50,000
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $140,000
    Loss at Start-up (Start-up Expenses) $50,000
    TOTAL CAPITAL $60,000
    TOTAL CAPITAL AND LIABILITIES $40,000
    Total Funding $120,000

    Services for Customers

    Virtual assistant companies offer a wide range of services to make a business run smoothly. Instead of small businesses and entrepreneurs hiring full time employees, virtual assistant companies avail services at an affordable fee in accordance to customer preferences.
    Working Bee intends to offer a wide range of VA services to cater for the needs of various customers. When planning how to start your own virtual assistant business, you should carry out a survey on the market to determine which kind of customers you are looking for. In this case, Working Bee plans to offer the following services:

    • Offer a wide range of services in virtual assistant and admin.
    • Offer web design and SEO services.
    • Offer social media and digital marketing services.
    • Offer graphic and banner services.

    Note

    The virtual assistant industry is ranking in impressive numbers in recent years and for this reason, people venturing into the industry are witnessing fast growth and high profitability.

    Marketing Analysis of Virtual Assistant Business Company

    According a survey by the Virtual Business Alliance, a global consortium of virtual assistant trade organizations, the average full-time virtual assistant working in the United States grossed $39,452 last year.

    When coming up with a virtual assistant business plan, it’s essential to do your homework well. Understanding your local market is the ticket to give you intimate knowledge of local trends. Many virtual assistant companies are being set up to meet the growing demand for VA services and an attractive customer business plan virtual assistant approach is required.

    5.1 Market Segment

    In order to ensure Working Bee meets its responsibilities, the company will focus of offering on demand VA services. The aim is to keep introducing a wide array of services associated with virtual assistant. A good virtual assistant business plan template should effectively identify potential customers for the business. Working Bee will basically reach out to small businesses and entrepreneurs interested in VA services. After an in-depth market research, Working Bee has identifies the following customer to patronize the company.

    Virtual Assistant Business Plan - Market Segmentation

    5.1.1 Small Businesses

    One of the biggest markets for Working Bee is small businesses who are don’t want to have employees full time. The concept of virtual assistant has been embraced by many small businesses that still don’t have enough money to commit to full time employees but want to outsource some of their services. Some of the common services these businesses need a help with include data entry, lead generation, inbound campaigns and customer care services among others.

    Statistics indicate small businesses that have been successful have used the services of a virtual assistant on their businesses. The growth witnessed in the virtual assistant industry has been attributing to an increase number of small businesses who wish to grow and be successful. This free virtual assistant business plan template is designed to focus on reaching out to current small businesses in bid to encourage them to use VA services.

    5.1.2 Entrepreneurs

    This group consists of customers who are looking running their businesses from home. Today, many people have embraced entrepreneurship and thus the need of VA services has grown tremendously. Working Bee plans to create a comprehensive and attractive VA services plan that will attract entrepreneurs to use its services. Working Bee will have an experienced team that will handle entrepreneur’s needs perfectly for them to grow their business.

    5.1.3 Digital Marketing Companies

    The use of virtual assistant services has gained momentum attracting even digital marketing companies. Today, many small businesses and entrepreneurs are in need of digital marketing services to grow their businesses. With the flow of ready customers for digital marketing companies, they require VA services to deliver their services smoothly. With the increase interest in virtual assistant services, there’s a great market for Working Bee to explore.

    5.1.4 Writing Companies

    According to Working Bee free virtual assistant business plan, writing companies are also a big market to pursue. Working Bee plans to offer writing, translation and transcribing services to these companies.

    Market Analysis
    Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
    Small Businesses 30% 30,000 31,000 32,000 33,000 34,000 10.00%
    Entrepreneurs 27% 25,000 26,000 27,000 28,000 29,000 14.00%
    Digital Marketing Companies 25% 20,000 21,000 22,000 23,000 24,000 16.00%
    Writing Companies 18% 15,000 16,000 17,000 18,000 19,000 20.00%
    Total 100% 90,000 94,000               98,000 112,000 114,000 15.00%

    5.2 Business Target

    Everyone wants to become a VA and Working Bee has an excellent opportunity to launch its services on the market. San Francisco is a big city and Working Bee intends to set up in a strategic location with many small businesses, entrepreneurs and startups. In order to boost revenue, Working Bee plans to offer a variety of services for its customers. With a good strategy in place, Working Bee hopes to achieve a 60-70% increase in annual sales.

    5.3 Product Pricing

    When you decide to start virtual assistant business, it is necessary to do a market study and compare prices from competitors. Given the increasing number of VA companies, Working Bee is keen to have competitive pricing in order to stay on top of the games and complete with other industry players.

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    Strategy

    The VA industry is experiencing rapid growth as the virtual assistant services are becoming more embraced by many companies and businesses. With more businesses and entrepreneurs keen on running their businesses smoothly to achieve growth, outsourcing their work to virtual assistant companies has become inevitable. Working Bee plans to use the best virtual assistant business ideas to remain relevant in the fast growing industry.

    6.1 Competitive Analysis

    Working Bee plans to come up with a business model that will sustain business operations and ensure customers enjoy superior quality products. There are other virtual assistant companies in the city but the business has identified strategies to help remain ahead of competitors.

    6.2 Sales Strategy

    For Working Bee to attain its sales goals, the following strategies plans have been identified to help market the business.

    • Plan an event to show customers what kind of services you plan to offer.
    • Offer product and customer service training sessions to keep staff up to date about the latest virtual assistant services available. Doing this empowers staff to convince customers why they should spend their money on Working Bee.
    • Embrace SMS text messaging as a way to retain clients and build long-term customer relationships and loyalty.
    • Place signage at strategic points within the customer target areas to create awareness and market the business.
    • Advertise the virtual assistant business on local media channels such as radio, newspapers and television
    • Use social media channels such as Facebook, Twitter and Instagram to market Working Bee.

    6.3 Sales Forecast

    To achieve its targets, Working Bee has formulated a sales forecast to demonstrate how the business will perform when it starts operations. In order to be successful, you need to learn how to start your own virtual assistant business with the right sales forecast.

    Virtual Assistant Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Virtual Assistant and Admin Services 400,000 430,000 460,000
    Web Design and SEO Services 350,000 380,000 410,000
    Social Media and Digital Marketing Services 300,000 330,000 360,000
    Graphic and Banner Services 250,000 280,000 310,000
    TOTAL UNIT SALES 1,300,000 1,420,000 1,540,000
    Unit Prices Year 1 Year 2 Year 3
    Virtual Assistant and Admin Services $300.00 $330.00 $360.00
    Web Design and SEO Services $250.00 $280.00 $310.00
    Social Media and Digital Marketing Services $200.00 $230.00 $260.00
    Graphic and Banner Services $150.00 $180.00 $210.00
    Sales
    Virtual Assistant and Admin Services $300,000 $320,000 $340,000
    Web Design and SEO Services $250,000 $270,000 $290,000
    Social Media and Digital Marketing Services $200,000 $220,000 $240,000
    Graphic and Banner Services $150,000 $170,000 $190,000
    TOTAL SALES
    Direct Unit Costs Year 1 Year 2 Year 3
    Virtual Assistant and Admin Services $2.50 $2.70 $2.90
    Web Design and SEO Services $2.00 $2.60 $2.90
    Social Media and Digital Marketing Services $1.50 $1.70 $1.90
    Graphic and Banner Services $1.00 $2.00 $3.00
    Direct Cost of Sales
    Virtual Assistant and Admin Services $140,000 $160,000 $180,000
    Web Design and SEO Services $100,000 $120,000 $140,000
    Social Media and Digital Marketing Services $90,000 $120,000 $150,000
    Graphic and Banner Services $50,000 $80,000 $110,000
    Subtotal Direct Cost of Sales $330,000 $430,000 $530,000

    Personnel Plan

    Working Bee hopes to employ well trained and experienced team to run the operations of the virtual assistant company on a daily basis. Starting your own virtual assistant business, you should include a personnel budget to enable the business have an idea of how much it will spend on salaries.

    7.1 Personnel Plan

    Working Bee is owned by Nellie Daniel who will also be the manager of the VA Company. As preparations are put in place for the business to start operations to the public, the following staff will be employed in the company.

    Owner/Manager
    2 Marketing Executives
    1 Cashier
    5 Writers
    2 Translators
    10 Virtual Assistants

    Successful applicants will be undergo training to familiarize themselves with company operations to boost productivity and performance. They will also be allocating some time for bonding activities to encourage the team work spirit.

    7.2 Average Salaries

    Working Bee plans to compensate its members of staff the following salaries within the first three years of operation. If you plan to start a virtual assistant business, you must allocate finances for their salaries.

     Personnel Plan      
    Year 1 Year 2 Year 3
    Owner/Manager $60,000 $80,000 $100,000
    2 Sales and Marketing Executive $50,000 $54,000 $58,000
    1 Cashier $25,000 $30,000 $35,000
    5 Writers $100,000 $105,000 $110,000
    2 Translators $40,000 $42,000 $44,000
    10 Virtual Assistants $200,000 $205,000 $210,000
    Total Salaries $475,000 $516,000 $557,000

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    Financial Plan

    Working Bee has come up with a detailed financial plan that will guide the operations of the company. Initial capital and business expenses need to be well-defined when starting a virtual assistant business. In this business plan, Nellie Daniel will finance the virtual assistant business assisted by two investors. Once a defined approach on how to set up a virtual assistant business has been unveiled a bank loan for business will be secured to help finance budget deficiencies.

    8.1 Important Assumptions

    Financial forecast for Working Bee shall be based on the assumptions below.

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.00% 15.00% 22.00%
    Long-term Interest Rate 4.00% 4.00% 4.00%
    Tax Rate 12.00% 16.00% 20.00%
    Other 0 0 0

    8.2 Brake-even Analysis

    The Brake-even Analysis for Working Bee is shown in the graph below.

    Virtual Assistant Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Units Break-even 4000
    Monthly Revenue Break-even $340,000
    Assumptions:
    Average Per-Unit Revenue $130.00
    Average Per-Unit Variable Cost $2.60
    Estimated Monthly Fixed Cost $240,000

    8.3 Projected Profit and Loss

    Profit and Loss information for the virtual assistant calculated on a monthly and annual basis is shown below.

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $440,000 $470,000 $50,000
    Direct Cost of Sales $50,000 $60,000 $70,000
    Other $0 $0 $0
    TOTAL COST OF SALES $50,000 $60,000 $70,000
    Gross Margin $430,000 $470,000 $510,000
    Gross Margin % 75.00% 80.00% 85.00%
    Expenses
    Payroll $350,000 $400,000 $450,000
    Sales and Marketing and Other Expenses $6,000 $8,000 $10,000
    Depreciation $4,000 $6,000 $8,000
    Leased Equipment $0 $0 $0
    Utilities $6,000 $8,000 $1,000
    Insurance $3,000 $4,000 $5,000
    Rent $13,000 $16,000 $19,000
    Payroll Taxes $40,000 $43,000 $46,000
    Other $0 $0 $0
    Total Operating Expenses $320,000 $350,000 $380,000
    Profit Before Interest and Taxes $55,000 $65,000 $75,000
    EBITDA $30,000 $35,000 $40,000
    Interest Expense $0 $0 $0
    Taxes Incurred $23,000 $28,000 $330,000
    Net Profit $120,000 $140,000 $160,000
    Net Profit/Sales 40.00% 45.00% 50.00%

    8.3.1 Monthly Profit

    Virtual Assistant Business Plan - PROFIT MONTHLY

    8.3.2 Yearly Profit

    Virtual Assistant Business Plan - PROFIT YEARLY

    8.3.3 Monthly Gross Margin

    Virtual Assistant Business Plan - GROSS MARGIN MONTHLY

    8.3.4 Yearly Gross Margin

    Profit and Loss Analysis for Working Bee is shown below.

    Virtual Assistant Business Plan - GROSS MARGIN YEARLY

    8.4 Projected Cash Flow

    Below is a summary of pro forma cash flow, subtotal cash received, subtotal cash spent on operations, subtotal cash spent and subtotal cash from operations.

    Virtual Assistant Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $70,000 $75,000 $80,000
    Cash from Receivables $10,000 $15,000 $20,000
    SUBTOTAL CASH FROM OPERATIONS $80,000 $90,000 $100,000
    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 $80,000 $90,000 $100,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $30,000 $34,000 $38,000
    Bill Payments $20,000 $23,000 $26,000
    SUBTOTAL SPENT ON OPERATIONS $50,000 $57,000 $66,000
    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
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $50,000 $57,000 $66,000
    Net Cash Flow $15,000 $18,000 $21,000
    Cash Balance $25,000 $28,000 $31,000

    8.5 Projected Balance Sheet

    Below is a Projected Balance Sheet for Working Bee that shows assets, capital, liabilities, long term assets and current liabilities.

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $240,000 $260,000 $280,000
    Accounts Receivable $12,000 $14,000 $16,000
    Inventory $4,000 $6,000 $8,000
    Other Current Assets $3,000 $3,000 $3,000
    TOTAL CURRENT ASSETS $259,000 $283,000 $307,000
    Long-term Assets
    Long-term Assets $13,000 $16,000 $19,000
    Accumulated Depreciation $15,000 $18,000 $21,000
    TOTAL LONG-TERM ASSETS $4,000 $2,000 $1,500
    TOTAL ASSETS $291,000 $319,000 $348,500
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $20,000 $23,000 $26,000
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $15,000 $18,000 $21,000
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $12,000 $14,000 $17,000
    Paid-in Capital $25,000 $25,000 $25,000
    Retained Earnings $35,000 $40,000 $45,000
    Earnings $120,000 $140,000 $160,000
    TOTAL CAPITAL $250,000 $280,000 $310,000
    TOTAL LIABILITIES AND CAPITAL $200,000 $220,000 $240,000
    Net Worth $250,000 $280,000 $320,000

    8.6 Business Rations

    The following is the Ratio Analysis, Business Ratios and Business Net Worth for the virtual assistant company.

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 3.00% 25.00% 55.00% 7.00%
    Percent of Total Assets
    Accounts Receivable 8.00% 6.00% 5.00% 8.00%
    Inventory 7.00% 4.00% 2.00% 10.00%
    Other Current Assets 5.00% 3.50% 2.20% 12.00%
    Total Current Assets 120.00% 140.00% 150.00% 60.00%
    Long-term Assets -10.00% -16.00% -20.00% 46.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 6.00% 3.00% 2.40% 25.00%
    Long-term Liabilities 0.00% 0.00% 0.00% 23.00%
    Total Liabilities 6.00% 2.00% 1.50% 48.00%
    NET WORTH 94.00% 84.00% 120.00% 40.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 74.00% 80.00% 84.00% 0.00%
    Selling, General & Administrative Expenses 65.00% 75.00% 60.00% 68.00%
    Advertising Expenses 5.00% 3.00% 1.40% 4.40%
    Profit Before Interest and Taxes 25.00% 30.00% 35.00% 1.50%
    Main Ratios
    Current 16 20 24 5.3
    Quick 30 34 38 3.5
    Total Debt to Total Assets 5.50% 4.50% 2.50% 60.00%
    Pre-tax Return on Net Worth 85.00% 95.00% 100.00% 4.20%
    Pre-tax Return on Assets 67.00% 59.00% 62.00% 10.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 23.00% 26.00% 29.00% N.A.
    Return on Equity 54.00% 58.00% 62.00% N.A.
    Activity Ratios
    Accounts Receivable Turnover 6 8 10 N.A.
    Collection Days 100 110 120 N.A.
    Inventory Turnover 18 22 26 N.A.
    Accounts Payable Turnover 14 16 18 N.A.
    Payment Days 22 22 22 N.A.
    Total Asset Turnover 2.8 3.3 3.6 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.06 -0.04 N.A.
    Current Liab. to Liab. 0 0 0 N.A.
    Liquidity Ratios
    Net Working Capital $250,000 $300,000 $3,500,000 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 2.3 3.3 4.3 N.A.
    Current Debt/Total Assets 7% 5% 3% N.A.
    Acid Test 28 32 36 N.A.
    Sales/Net Worth 3.3 3 1.7 N.A.
    Dividend Payout 0 0 0 N.A.

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