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.
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.
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.
|Research and Development||$30,000|
|TOTAL START-UP EXPENSES||$90,500|
|Other Current Assets||$24,000|
|Start-up Expenses to Fund||$40,000|
|Start-up Assets to Fund||$30,000|
|TOTAL FUNDING REQUIRED||$0|
|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|
|Liabilities and Capital||$0|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$140,000|
|Loss at Start-up (Start-up Expenses)||$50,000|
|TOTAL CAPITAL AND LIABILITIES||$40,000|
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.
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.
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.
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.
|Potential Customers||Growth||YEAR 1||YEAR 2||YEAR 3||YEAR 4||YEAR 5||CAGR|
|Digital Marketing Companies||25%||20,000||21,000||22,000||23,000||24,000||16.00%|
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.
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.
|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|
|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|
|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|
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.
2 Marketing Executives
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.
|Year 1||Year 2||Year 3|
|2 Sales and Marketing Executive||$50,000||$54,000||$58,000|
|10 Virtual Assistants||$200,000||$205,000||$210,000|
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.
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.00%||15.00%||22.00%|
|Long-term Interest Rate||4.00%||4.00%||4.00%|
8.2 Brake-even Analysis
The Brake-even Analysis for Working Bee is shown in the graph below.
|Monthly Units Break-even||4000|
|Monthly Revenue Break-even||$340,000|
|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|
|Direct Cost of Sales||$50,000||$60,000||$70,000|
|TOTAL COST OF SALES||$50,000||$60,000||$70,000|
|Gross Margin %||75.00%||80.00%||85.00%|
|Sales and Marketing and Other Expenses||$6,000||$8,000||$10,000|
|Total Operating Expenses||$320,000||$350,000||$380,000|
|Profit Before Interest and Taxes||$55,000||$65,000||$75,000|
8.3.1 Monthly Profit
8.3.2 Yearly Profit
8.3.3 Monthly Gross Margin
8.3.4 Yearly Gross Margin
Profit and Loss Analysis for Working Bee is shown below.
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.
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
|SUBTOTAL CASH SPENT||$50,000||$57,000||$66,000|
|Net Cash Flow||$15,000||$18,000||$21,000|
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|
|Other Current Assets||$3,000||$3,000||$3,000|
|TOTAL CURRENT ASSETS||$259,000||$283,000||$307,000|
|TOTAL LONG-TERM ASSETS||$4,000||$2,000||$1,500|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$15,000||$18,000||$21,000|
|TOTAL LIABILITIES AND CAPITAL||$200,000||$220,000||$240,000|
8.6 Business Rations
The following is the Ratio Analysis, Business Ratios and Business Net Worth for the virtual assistant company.
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||5.00%||3.50%||2.20%||12.00%|
|Total Current Assets||120.00%||140.00%||150.00%||60.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||65.00%||75.00%||60.00%||68.00%|
|Profit Before Interest and Taxes||25.00%||30.00%||35.00%||1.50%|
|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.|
|Accounts Receivable Turnover||6||8||10||N.A.|
|Accounts Payable Turnover||14||16||18||N.A.|
|Total Asset Turnover||2.8||3.3||3.6||N.A.|
|Debt to Net Worth||0||-0.06||-0.04||N.A.|
|Current Liab. to Liab.||0||0||0||N.A.|
|Net Working Capital||$250,000||$300,000||$3,500,000||N.A.|
|Assets to Sales||2.3||3.3||4.3||N.A.|
|Current Debt/Total Assets||7%||5%||3%||N.A.|
OGS capital professional writers specialized also in themes such as cyber security business opportunities, writing a business plan for internet, online store business plan, business plan for retail shop, dating business plan, business plan for internet radio and many others.