Independent Contractor Education
Independent contractors are self-employed business people who contract with a company, organization or other individual to provide services. An abridged business plan will usually address the needs of the independent contractor because they typically have less overhead and fewer business decisions to make. The outline for the independent contractor business plan appears below.
SECTION I: BUSINESS DESCRIPTION
- Provide a brief description of your business and its products or services.
- What background information do you know about your industry?
- What are your plans for business? Who, what, where and why do you plan to start?
SECTION II: MARKETING
Product or Service
- Will you provide a product or service?
- Describe your product(s) and/or service(s).
- What is unique or special about your product(s) or service(s)?
- How will your customers benefit from purchasing your product(s) or service(s)?
- Who is your customer?
- What characteristics can you use to describe your customer(s)?
- What interests or attitudes do they have?
- What is their buying behavior?
- Who are your top three competitors?
- What product(s) and/or service(s) do they offer?
- What are their strengths and weaknesses?
- How will your product or service differ from theirs?
- How do you price your product(s) or service(s)?
- How do your prices compare to your competitors?
- What forms of advertising will you use?
- What part does personal sales play in your promotional strategy?
- What other promotional tools will you use? (Examples of promotion tools to consider are: discounts, special events, classes, charity donations, other
- If you are housed with other professionals, what joint advertising are you planning?
SECTION III: OPERATIONS PLAN
- Where is your business located? (Street address)
- Why is this the best location for your business?
SECTION IV; ORGANIZATIONAL PLAN
- What is your legal form of ownership?
- What outside support will you need? (Accountants, Attorney, Others)
- What will they do?
- How much will they cost?
- What licenses/permits are needed?
- What are their requirements?
- What is the cost and renewal schedule?
- What liability or other insurance is needed?
SECTION V: FINANCIAL PLAN
Start-up or Expansion Cost
- List any start-up or expansion costs. Indicate if you will be paying for these items, or if someone else provides them at your business location. Examples include: equipment, furniture & fixtures, inventory, working capital (for rent, advertising, insurance, etc.), attorneys, accountants, other consultants.
- Provide the total cost of start-up or expansion costs.
- If you will need financing, identify where the money will come from. Examples include: personal savings, bank loans, loans from friends, outside investors, other (describe).
- Provide the total amount of financing to be obtained.
- How do you plan to keep track of your income and expenses, with paper records, computerized records or other (describe)?
- How much money do you plan to make monthly?
- How much money do you need to make monthly?
- How does this number fluctuate seasonally?
- How many hours a week do you plan to work?
- How many days a week do you plan to work?
- List all the sources of income available to your business.
- List all the monthly expenses you will have.
- Based on your projected sales and expenses, complete a projected Cash Flow statement.
- How do you plan to pay for quarterly:
Local taxes ?
SECTION VI: APPENDIX
Include the following items in your appendix:
Resume for the business owner
Letters of intent from prospective customers/clients
Quotes on equipment/furniture/working capital purchases