AVON TRAINING: HOW TO MAKE A BUSINESS PLAN

TITLE IMAGE Make a Business Plan

How to Make a Business Plan for Your Avon Business

A new sales year has begun & 2018 is arriving just around the corner. This is a great opportunity to review the past year & to set goals for the upcoming year. I find that this time of year is the perfect time, as an Avon representative, to work on my business plan. I created a business plan for 2017, and I have to say it was definitely the best decision I made because it helped me know what I needed to do to reach my goals and have something that will keep me accountable. Below you will learn about what benefits you can enjoy with your business plan & how to make one similar to the one I made.

TIP: You can find a variety of business plan templates online for FREE through a google search if my version does not meet your needs. You want to make sure you create a plan that will best match you & your business. 

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What is a Business Plan?

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“A business plan is a written description of your business’s future, a document that tells what you plan to do and how you plan to do it” (Entrepreneur, 2017). If you are looking to have your Avon business make you money, then this is a tool you will be happy you took the time to do. A business plan is a tool to help you stay on track, be accountable & know what you need to do in order to get you where you want to go.

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Why Should I Have a Business Plan?

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Research has shown that those who actually take the time to write up a business plan are more likely to follow through on their plans (Entrepreneur, 2008). Think about it. When you go to the grocery store, are you more likely to get everything you need when you have a list written down for you? Of course you are because you have something that you can check off & not have to worry about forgetting. It’s human nature that something will be forgotten. So having a plan on what you want to accomplish & how you want to accomplish it will help you stay on task & do what you need to do in order to reach your goal.

Having a business plan not only will help you accomplish your goals but it will also give you a more of a professional, business like mind. One of the downfalls many representatives experience is that they don’t look at their Avon business as a business. This may cause you to not take it seriously. You need to look at your Avon business as if you opened store. The only thing is you don’t have an actual store front, you have a brochure. When you look at your Avon business as a business so will those who you speak to. They will see that you are in it for the long haul & are going to be a representative or mentor he/she can depend on to be there.

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Benefits of a Business Plan

Here are the benefits of making a business plan according to the U.S. Small Business Association (Berry, 2016):

  1. Planning your business will allow you to connect everything so you can get a better picture as a whole.
  2. Help you focus on things such as knowing what your target market is that will best match your product and/or service.
  3. Have you prioritize & track activities that will best meet your business needs so you don’t waste time, energy or resources on items that don’t work for you.
  4. Allows you to have room for change as needed by regularly reviewing business plan activities, goals & tracking.business
  5. Makes you set smaller goals towards your big goals & have you be accountable through tracking.
  6. Able to better track your cash flow by establishing where your income is coming from & what your spending your money on.
  7. Allows you to see if your activities, services & products you provide are flowing with what you want your business to be, such as if you want an online business, are you doing activities to help you grow your online business.
  8. Has you reaching milestones in your business by having you see where your starting point is & where you want to go next.
  9. Have you come up with a tracking system that will best meet what you need to know for your business other then cash flow, such as customer orders, online orders, number of representatives who place orders etc.
  10. Ensures that you maintain a realistic customer service process that will best meet your business needs like only offering Avon Parties on certain days during the month or setting the order due date a day earlier then it is due for you, the representative.

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How Do I Make a Business Plan?

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I know for the first year as an Avon representative I was basically just winging it. I knew where I wanted to go but I was just taking ideas from here & there to see what stuck. I came across this YouTube video from Theresa Paul (see below) where she talks about how she came up with her business plan that helped her accomplish her 5 year plan in 2 years. Being known as a Must Plan Everything type of gal, I knew this tool was what I needed to help me stay on task & focused because I knew what I needed to reach my goals.

Here is how I came up with my business plan:

Step 1: What Do You Want to Accomplish with Your Business?

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This is where you are going to take a look at your “Why”. Are you looking to earn money like me so you can stay at home rather then work outside the home? Do you want to save up for retirement for yourself or for college for your child(ren)? Do you hate working for someone else & want to earn a full time paycheck? What are you looking for your Avon business to accomplish?

TIP: When your writing your goals, it is important to be as specific as possible. How much do you need to earn a month (or biweekly) for your goal to be accomplished?

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Step 2: What Are Your Current Numbers?

This step is where Theresa Paul’s YouTube video will come in hand. She walks you through on how you can figure out your current business numbers. This is important because you need to know where you are at in order to see what is needed to get you where you want to be. So click the video below or scroll down to see how I determined where my business was at.

In my business plan, I figured out:

  • Total Average Customer Sales by adding up each of the customer’s orders in the last 3 campaigns then divide that number by 3. For a more accurate number, add up the last 26 campaigns customer orders & divide it that number by 26.
  • Customer’s Average Order Size by totaling up the last 3 campaign’s customer orders & divide it by the number of customers who placed orders during the last 3 campaigns. For a more accurate number, add up the last 26 campaigns customer orders & divide it that number by 26.
  • Average # of Customer’s who Place Orders is determined by adding up all of the customer’s order totals in the last 3 campaigns & how many customer orders were placed in each campaign. Then, divide the total customers’ order totals by the total number of customers who placed an order. For a more accurate number, add up the last 26 campaigns customer order totals & number of customers’ orders placed.
  • Average # of Brochures Handed Out is determined by adding up the number of brochures you handed out the past 26 campaigns & then divide that number by 26.
  • Total # of Customers is determined by adding up everyone you give a brochure to, email, who has ordered from you or you have contacted with about your business.

As you can see, knowing what each of these points above will help you see where you are at currently with your business. With this information you will also be able to determine what you need to get from point A to point B. (See Step 4 to learn how to determine what you will need)

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Step 3: What Does Your Campaign Totals Need to Be?

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Now it’s time to determine what your totals need to be in order for you to earn the money you are looking to earn as described in Step 1.

  • How much does your order size need to be in order for you to earn the profit described in Step 1?
  • For leadership, what does your team need to for you to qualify the level of leadership you want to be. How many 1st generation orders are needed for the level you want to be at? What do your team sales need to be?

TIP: When determining where you need to be in order to reach your goal, make sure to overshoot & consider how much your expenses will be before you receive your profit. This will help ensure that when you reach these totals, you are earning the money you want to earn.

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Step 4: What is Needed to Reach Your Goal(s) Campaign Total(s)?

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This is where you will determine how many customers you need & team members you will need to reach your sales & leadership goal(s). Here you will use the information you determined in step 2 to help you determine what you will need to reach your goal(s).

Sales Goals

In order to figure out how many customer’s you will need is by first figuring out what your ratio is of customers who place orders vs how many total customers you have. In order to determine your rate, you must divide the average number of customers who place an order by the total # of customers you have. I would also find the ratio for orders vs brochures handed out so you can see if this is an area, you can improve on or continue. To determine this, you will divide again average number of customers who place an order by the average number of brochures you hand out.

Now that you have your % of customers who order, you can see how many customers you will need to

  1. Place an order each campaign
  2. How many more customers you will need to add to your customer list

So to determine how many customers you need to place each campaign, what you do is divide your goal total you wrote down in Step 3 by the average order size you determined in Step 2.

FOR EXAMPLE:

Your Goal Total is $1,000

Your current average order size is $25 a customer

You will divide $1,000 by $25 and see that you need 40 customers a campaign to place average of $25 orders.

To determine how many customers you will need to add to your customer list you will take the number of customers you need to place each campaign (the figure you just figured out) & divide it by the percent of what your customer order ratio is.

FOR EXAMPLE:

You need 40 customers a campaign to place average of $25 orders

Your current customer order ratio is 40%

You will divide 40 by .40 

This will total a minimum of 100 customers that you are regularly in contact with about your business for you to reach your goal. 

Tip: Another way to help you reach your campaign’s sales goal is by increasing your average customer’s order size. You can do this offering order rewards or by reminding customers about The A Box

LEADERSHIP GOALS

In order to determine what you need in order to reach your leadership level goal, all you have to do is check Avon’s Advanced Leadership earnings chart & see what the minimum requirements are for you to reach that level.

To learn more about Avon’s Advanced Leadership Program, check out Avon’s Advanced Leadership 2018.

If you all ready have an established team, you can determine the ratio of representatives who place an order by dividing the number of representatives who place an order each campaign by the number of representatives on your team.

FOR EXAMPLE:

You currently have 3 representatives on your team.

Only 1 representative is placing an order each campaign.

To determine your team ratio who places orders you will divide 1 by 3 giving you a 33% rate.

To determine how many representatives you will need to reach your desired leadership level you will take the minimum number of representatives you need & divide it by your team order rate.

FOR EXAMPLE:

You want to reach Bronze Ambassador Level which has a minimum of 3 representatives placing an order each campaign.

You have a 33% rate.

To determine what you need you will divide 3 by .3333 which will total 9.09. Since it is a decimal number over 9, I would round that number to 10. Meaning you will need to have 10 representatives on your team for you to reach Bronze Ambassador with the rate you currently have. 

TIP: I recommend shooting for more when it comes to deciding what your team sales goal should be & the number of representatives on your team you need. If you just shoot for the minimum, you are taking the chance of missing it. Your team rate may change as your team grows. Not everyone who joins your Avon team will place orders on a consistent basis, if at all. By overshooting, you will ensure that you qualify & meet your goal with out worrying about losing it shortly after. 

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Step 5: How to Get from Where You Are to Where You Want to Be

This is the step where you will determine how you will get from where you are currently with your business to where you want to be at a steady pace. In doing this, it will help you stay focus & won’t have you feel overwhelmed, especially if you are numbers that are bigger then the ones I used above for examples. It is a known fact that when you break down a long term goal(s) into more achievable short term goals, you are more likely to reach your long term goal(s).

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So what do you want to accomplish each campaign that will get you closer to your long term goal(s)?

  • How many new customers do you want to place orders each campaign?
  • How much should your order size go up?
  • How many new representatives do you want to join each campaign?
  • What activity or activities you can work on a regular basis to help you grow your business such as having X number of Avon parties or fundraisers in a month, placing brochures/flyers in X number of new businesses or creating a blog you can work on a regular basis that will attract more customers & recruits.

For more ideas on how to share & market your business, check out

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Step 6: Campaign Routine

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To keep you on track & ensure that everything gets done in a timely manner, it is important to establish some form of a campaign routine. Having a routine for your business will not only keep your business organized but it will also help customers get into a routine as well. They will learn quickly when they will be receiving their new brochure & how much time they have to place their order. You can also create a marketing routine by deciding where you will market your business & when you will update the information.

You can learn how to create a campaign routine by checking out my blog- Avon Selling Tips: Creating a Campaign Routine

TIP: Your routine is a guideline to help you stay on task. This is not meaning you can’t adjust or make changes as needed. You want to create a routine that will keep you effectively working towards your goal without overwhelming yourself.

CLICK HERE TO JOIN AVON WITH REFERENCE CODE: JANTUNES

Step 7: How to Track Your Business Plan

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It is very important to regularly track your business, other then your cash flow. Yes tracking your cash flow is important so you can see where your money is coming from & where is it going to so you can make adjustments as needed. However, tracking your goals on a regular basis will help you not only see the changes you may need to make to your plan but also for you to see what is working.

I track my business plan goals at the end of each campaign. Then every 6 campaigns, I do a review to see where any changes are needed. You don’t need to keep this elaborate tracking system for this to work. A simple checklist or spreadsheet will do.

At the end of each campaign, I created a simple spreadsheet to track:

  • Number of personal & online orders
  • Total of personal & online orders
  • Number of new customers who placed an order
  • Number of new recruits who joined my team
  • What my team sales are
  • How many representatives I have on my team
  • How many 1st Generation representatives I have on my team
  • How many 1st Generation representatives in leadership on my team

Image result for avon #beautybossEach of these points will help me determine each campaign what is working & what is not. When I have a successful campaign that has me go beyond my short term goals, I will look to see what I did & how I can continue to do it. I can do the same when I fall short by seeing what I need to do more of or change.

After every 6 campaigns, I will review my statistics & see if there are any adjustments I may need to make in my short term goals (like are they realistic?) and activities I am doing each campaign (what’s working & what’s not).

There you go! You have now created a business plan that can help you stay on track & get you to where you want to be with your business.

IF YOU HAVE ANY QUESTIONS OR CONCERNS ABOUT ANYTHING YOU HAVE JUST READ, PLEASE FEEL FREE TO CONTACT JEN ANTUNES AT AVONANTUNES@GMAIL.COM.

CLICK HERE TO JOIN AVON WITH REFERENCE CODE: JANTUNES

References

HOW TO JOIN AVON

You can become an Avon representative by joining at www.startavon.com with Reference Code: jantunes.

At that time you will be able to choose from 3 starter kits starting at $25. Each kit will have everything you need to start your very own Avon businessincluding brochures, full size products, samples, recruiting information & more. You can learn how to use your chosen starter kit to start a successful Avon business at Avon Selling Tips: 2018 Avon Starter Kit Tips for New Representatives.

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To learn more about starting your own Avon business, check out Sell Avon: How to Start & Avon Selling Tips: 2018 Avon Starter Kit Tips for New Representatives.

CLICK HERE TO JOIN AVON WITH REFERENCE CODE: JANTUNES

SELL AVON ONLINE

FOR MORE TIPS & INFORMATION:

Join our Avon team and have access to more tips & tricks on how you can create, build & maintain a successful Avon business. Make sure to follow my blog, Journey of an Avon Mom, for more tips & training to help you grow your Avon business.

Join today at www.startavon.com with Reference Code: jantunes.

YOU CAN ALSO FIND AVON WITH JEN ANTUNES ON FACEBOOKINSTAGRAMPINTEREST & TWITTER.

How Can I Help You?

 

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Shop Avon Online
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