I see the question being asked frequently: ‘What do I need to get started as a sole trader ?
The answers are always things like: ‘Get an ABN, get insurance, make sure your car is appropriate, Yellow Card, Blue Card, First Aid etc. ‘. Very few say: ‘Do your homework and create a business plan for yourself so that you know how to track your business, set goals, do the right thing by your participants, and have a legal and moral license to operate.’ Even fewer say: ‘Invest in yourself and pay someone with the right expertise to help you.’
So why might you be hesitant? It’s likely because you’ve never done it before. It’s out of your comfort zone and starting a business can be a daunting task. Or maybe it’s you need help doing it and scared of how much it might cost? That is probably a major factor too.
Thankfully, business plans are an antidote for the new business woes that many sole traders feel. Some may shy away from the idea, as they are lengthy documents that require a significant amount of attention and care. But you can get someone to help you do this! And you should reach out to someone with expertise if you don’t have it.
However, there’s a reason why those who take the time to write out a business plan are 61% more likely to be successful than those who don’t. In other words, business plans work.
Of course, working in Disability & Aged Care there are some other factors you need to consider also, these you can find in my E-Book: Becoming a Self-Employed Sole Trader Working in Disability or Ageing Support.
What is a business plan and why does it matter?
In brief, a business plan is a roadmap to success. It’s a blueprint for sole traders to follow that helps them outline, understand, and cohesively achieve their goals. It involves defining critical aspects of your business, like brand messaging, conducting market research, and creating pricing strategies — all before starting the business.
A business plan can also increase your confidence. You’ll get a holistic view of your business and understand whether it’s worth pursuing. So, why not take the time to create a blueprint that will make your job easier? Let’s take a look at some reasons why you should write a business plan before doing anything else.
1. Legitimise your business.
One of the first things a business plan requires you to do is research your target market. You’ll gain an understanding of industry trends and what your competitors have done, or not, to succeed. And remember, you are competing! Against other, much larger service providers who’ve been doing it for a lot longer than you, as well as other sole traders. You may find that there is just way too much competition in the area, that your chances of being successful are not likely.
That may feel disheartening, but now you have the knowledge. And that is power. You can now modify your original idea to better fit market needs. The more you understand about the sector, your future competitors, and your prospective participants, the greater the likelihood of success. If you identify issues early on, you can develop strategies to deal with them rather than troubleshooting as they happen.
It’s better to know sooner rather than later if your business will be successful before investing time and money.
2. Give your business a foundation for success.
So, you’re starting a business in disability support, whether it be support work, nursing support, allied health or otherwise under the banner of the NDIS. There are thousands of directions you can go in, so just saying, “I’m starting a business in disability services within the NDIS!” isn’t enough.
You need to know what specific services you want to provide, and why you’re deciding to provide them. The Pricing and Service section of a business plan requires you to identify these elements, making it easier to plan for other components of your business strategy.
You’ll also use your initial market research to outline financial projections, goals, objectives, and operational needs. Identifying these factors ahead of time creates a strong foundation, because whether you know it or not, you’ll be making critical business decisions early on.
You can refer back to the goals you’ve set within your business plan to track your progress over time and prioritise areas that need extra attention.
When you start your business, and your services reach the market, you’ll spend less time troubleshooting and being surprised by what you didn’t anticipate, and more time focusing on your participants and generating value for them.
3. Good operational business sense.
After you’ve completed your business plan and you have a clear view of your strategies, goals, and financial needs, there may be milestones you need to meet that require skills you don’t yet have. You may need to hire new people to fill in the gaps. Gaps such as: What if you get COVID? What if you need a holiday? What if you need time away from your business for personal reasons? Do you know about one touch payroll? Do you know what tax implications you or your staff have?
Having a strategic plan to share with prospective participants and employees can prove that they aren’t signing onto a sinking, directionless ship. If your plans are summarised and feasible, they’ll understand why you want them on your team, and why they should agree to work with you.
4. Communicate your needs.
If you don’t understand how your business will run, it’ll be hard to communicate your business’s legitimacy to any potential participant or potential employee.
Your plan will give you a well-rounded view of how your business will work, and make it easier for you to communicate this to others. Using your business plan as a measure of how you’ve met your goals can make it easier to bring people onto your team at all stages of the process.
Not to mention, allow them to build trust in your operational business skills and business sense, so that they could enjoy continuity of care in return.
5. It makes it easier to build trust in your business.
A participant or employee won’t want to join a business that will run into the ground after signing the service agreement papers. They want a successful, experienced person who is running a trustworthy business to provide them with much needed care to give them choice and control that they so desire.
A business plan that details milestones will overtime give you the confidence and ability to prove you’ve already met expectations for participants and generated success within your area of expertise. You can use your accomplishments to negotiate higher price points aligned with the NDIS price guide, as well as your business’ value.
A Business Plan Is Essential
Ultimately, having a business plan can increase your confidence in your new venture. You’ll understand what your business needs to succeed and outline the tactics you’ll use to achieve those goals.
Some people have a lifetime goal of turning their passions into successful business ventures, and a well-crafted business plan can make those dreams come true.
Sue Mills, the Founder of Sassy Marketing , develops smart and innovative strategies for service providers, as well as support workers who want to become independent sole traders. Sue will guide you in building a strong, ethical and worthy business, so you can work with your chosen clients, and your chosen hours. Finally have the choice of how you want to work, and earning what you should be earning. Our sweet spot is working within the Disability Sector, with personal in home support workers and nurses that do what they do for the love of the sector, and for the respect and dignity of those they care for. Call Sue on 0477 468 888 for a confidential discussion or visit www.sassy.marketing.
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