Preparation
Preparation
Things to do:
- Business idea
- Business model and strategy
- Marketing research
- Operational process
Business idea
Let's assume you want to build an SEO company and probably you already have a business idea about entering into an SEO business. Before doing any financial calculation, you might challenge your business idea, draft business and marketing plans. At the latter stages, we will not go through determining the soundness of your business idea and how you plan to achieve it, it is highly recommended to build a solid business idea and strategy that will support operational numbers we will be playing later on. Nevertheless, it will be fun determining how many customers, revenues, orders, you need to achieve compared to resources you would be required to invest in order to keep the operation going.
In the essence of providing SEO service to customers, the business idea is to provide an automatic solution for assessing your website, provide deep analysis of every aspect that ranks you on Search engines, and provide recommendations for improvement while constantly tracking trends and competitors.
There are many good websites for challenging your business idea and draft a business plan and we will recommend a few of them.
Understanding business model
How the business model is set up and what are the value propositions, customer segments, channel operational, and financial processes throughout the entire business setup. One of the best tools to assess a business model is the Osterwalder-s Business model Canvas BMC. It is generally one side business model with various customer-s segments, where an SEO agency sells its value proposition throughout the specific channels. Once you have developed your BMC you will set up the most important key segments of your business strategy. some of the most important business segments to figure out are as follows
Market and customers
After extensive research and operational analysis, you will figure out where will you sell your service. You can set up up to three customers group with up to six services to sell. For example, you can set up a customer's group as;
- geographical region (domestic customers, regional customers, and international). You can differentiate different products and prices for different regions.
- Vertical (various industries)- Marketing agencies that focus on domestic, international clients.
- White label you sell the platform to another startup SEO company that wants to sell SEO services without investing in the application.
- Online businesses target companies that sell their services entirely online. (travel agencies, e-commerce, services)
Operation process
If you know how to excel in delivering a desirable product or service your customer wants and also know how to run an operation successfully, you need to develop a financial plan with a valuation in order to guide yourself to reaching the desirable net worth of your future business.