What is your MLM Business Plan?

It is important to remember that your MLM business is not a hobby, but it is indeed a business.  As with any other business venture, it is imperative that you have an MLM business plan.  

Far to many network marketers start off without having a sound business plan for their MLM business.   They have not taken the time to think out their course or plan of action.   In this post I want to give you some basic principles for developing a sound MLM business plan.

In your business plan you will need to consider some of the following questions:
  • What is the nature of your business?  If you are going to seek financing for your business this will be crucial.  Your lender will need to have a complete understanding of your business.
  • How will your business be structured?  Will you be a sole-proprietor, partnership, limited liability company or corporation.  You may need to consult with a legal advisor and tax advisor on these decisions.  There are advantages and disadvantages to each type of business structure.
  • Will you need to keep inventory on hand?  Depending on the MLM business opportunity you are utilizing, you may find need to keep a regular inventory of product on hand.  Questions as simple as where will you store your inventory need to be addressed.  You will also need to determine the quantity of inventory that needs to be maintained at any given time.
  • What operational expenses will you have?  These include things like travel to meetings, food for home parties, printer ink, fax machine, internet service, toll-free calling plans, etc...
  • What type of marketing will you be doing?  Are you going to use paid advertising, such as the yellow pages or pay per click advertising, or will you be utilizing free advertising resources?
  • How will you create cash flow for your business?  Are you going to seek small business financing, or will you be utilizing other revenue streams to fund your business in the start up stages?  Lack of cash flow is the number one business killer for MLM marketers.
With this information in hand you now need to articulate your MLM business plan in writing.  Writing out your plan will bring clarity to your business, allowing you to work through some of the challenges you will face in your business.  In your business plan, you will want to address start up expenses, monthly operating expenses and first year income projections.   In your income projections, you need to define how you will reach those income projections.   If you are going to seek outside financing for your cash flow requirements, your MLM business plan will need to provided to your lender.

Your business plan is the foundation you will work from.  You will likely make adjustments to your MLM business plan as you get into your business efforts.   It is important that you write these adjustments down and revise the business plan accordingly.  You will want to help your new downline distributors develop their business plans as well, so that they treat their network marketing opportunity as a business.   Your attention to detail with them, gives them a greater opportunity for success.

The old adage is true:  "Plan your work and work your plan."

Bookmark & Share



Bookmark & Share

 del.icio.us  Stumbleupon  Technorati  Digg 

Posted by Carl Willis at 1/22/2010 9:57 AM
Categories: MLM,MLM Business,Network Marketing Business,Network Marketing
Tags: online marketing network marketing mlm marketing principles mlm business opportunity marketing
 

What did you think of this article?




Trackbacks
Trackback specific URL for this entry
  • No trackbacks exist for this entry.
Comments
  • No comments exist for this entry.
Leave a comment

Submitted comments will be subject to moderation before being displayed.

 Enter the above security code (required)

 Name

 Email (will not be published)

 Website

Your comment is 0 characters limited to 3000 characters.