How to Write a Web Design Business Plan
If you’re ready to take your web design business to the next level, creating a business plan is a great place to start. Whether you’re a freelancer who wants to go full time or a professional designer who wants to grow your web design business, a business plan can help you set ambitious goals and determine how to achieve them.
When done right, your business plan should read like a how-to guide, spelling out exactly how you’ll start, build, and grow your web design business. You’ll pitch your business, analyze competitors, identify risks, and set key milestones. You’ll also make financial projections, and share the operational plans, marketing strategies, and sales tactics you’ll use to get there.
Your business plan should address several audiences at once. It’s a powerful tool for you as you analyze opportunities and devise strategies for meeting your goals. It’s also a great resource to use when pitching clients, partners, and investors on the services you offer.
This versatility speaks to the ultimate value of creating a business plan. While it requires research and foresight up front, it will help you build a web design business that’s both successful and sustainable.
Key components of a web design business plan
Executive summary
Your business plan should start with an executive summary. Think of this as a TL;DR for anyone reading the document: business plans are often long, and a user-friendly summary can make the read less intimidating.
Introduce the reader to your web design business, and summarize what they’ll find in your business plan. Provide a concise overview of the business’s mission, vision, and key objectives. Highlight the services you’ll offer, emphasizing standout features and competitive advantages that may pique the reader’s interest.
This executive summary should be short. If your business plan is 25 pages long, give it one to two pages. If it’s 10 pages long, write just a few paragraphs.
Though the executive summary is the first thing people will read, it should probably be the last thing you write. After all, it's tough to sum up the rest of your business plan when you haven’t written it yet.
Company description
Help clients, partners, and investors get to know your web design business by telling your business's story. Walk them through your background as a web designer, and share the company’s raison d’être: when, how, and why did you realize this business needed to exist?
This is a great place to build credibility. If past experiences or accomplishments set you apart from other web designers, highlight them. Similarly, if you’re working with a team, share who they are, what roles they’ll fill, and why they’ll make great collaborators.
You’ll also want to cover some nitty-gritty details, like the company’s legal structure (think: LLC, DBA, etc.) and ownership information.
This section should be concise, but comprehensive—about one to two pages long. You want to fully introduce your web design business without wasting the reader’s time.
Market analysis
To build a successful business, you need a clear understanding of your target customer, your competitors, and the web design industry at large. This information will live in the market analysis section of your business plan, which should be about two to four pages long.
Start by defining your target customer: who is your business trying to reach? Instead of aiming for all web design clients, identify a target market segment—a smaller group of web design customers with shared needs, interests, behaviors, or demographic characteristics.
Research this group in detail, and use client personas to bring them to life. Client personas are specific but fictitious representations of your target customers. They can help you illustrate the challenges your target customers face and the impact your business will have on them.
With your target clients defined, you can analyze your competitors: which website design businesses occupy a similar niche? Identify at least five competitors, and honestly evaluate their strengths and weaknesses. Then, clarify how you plan to compete.
Use your client research to pinpoint where your competitors are falling short. By delivering something they don’t (i.e., lower prices, specific services, etc.), you can stand out. Wherever possible, back up your assumptions with research. Cite trend data, keyword research, or testimonials that show your target customers want something no one else offers.
Round out your analysis with a critical look at your business model: what are its strengths and weaknesses? For example, a smaller target market may be easier to penetrate, but it caps the number of clients you can reach.
Then, assess the web design industry at large. Highlight trends you’re capitalizing on, new technologies you’re taking advantage of, or market weaknesses you’re circumventing.
Services and portfolio
Now that you’ve illustrated the need for your business, give your reader a glimpse of it. List the services you’ll offer, complete with sample prices. Establish your brand identity with a logo, mission statement, and style guide. And include examples of the work you’ll create. These can be relevant portfolio samples, case studies, or freshly made mock-ups.
Spend one to two pages fleshing out your business. Instead of scattering visuals throughout your text, store them in an appendix at the end of your business plan. This will keep your reader from losing momentum and allow them to skip ahead as they see fit.
Marketing and sales strategies
Once you have a great product, you need a strategy for landing customers and generating revenue. Dedicate one to two pages to the marketing and sales tactics you’ll use, and be specific. If you do the heavy lifting now, you’ll know exactly how to grow your business once you launch it.
List the marketing channels you plan to leverage, and establish a strategy for each one. Create a content calendar for social media posts, newsletters, and content marketing campaigns. Specify what you’ll do for SEO, post on your blog, and spend on paid advertising. You can also detail which networking events you’ll attend or host, how many cold calls you’ll make, and how you’ll generate referrals. Focus on the marketing channels that deliver real value for your business: where is your target audience, and how can you reach them.
Your efforts shouldn’t stop at landing clients. You also need to impress the ones you have. Zero in on your competitive advantage, whether that’s writing standout proposals, offering subscription services, or promising the best value around. Create a plan for regularly checking in with past clients, and consider how you can use discounts, packages, and promotions to keep them coming back for more.
Operational plan
Dedicate one to two pages to business logistics: what will your day-to-day operations look like?
Think about who you need to hire, what roles they’ll fill, and what responsibilities they’ll have. Compare office spaces, list essential equipment, and consider what web design tools you’ll need to do your best work. Factor in sneaky necessities, like WiFi and office supplies. You’ll also want to think about nice-to-haves, like snacks and coffee for your team.
Your plan doesn’t need to be exhaustive, but it should be practical. These expenses will affect your financial projections, so you want to be as realistic as possible.
This is also a great place to map out internal policies. If you have project management protocols, client communication best practices, or other in-house guidelines, detail them here.
Financial plan
Show that you’ve done your due diligence with a thorough financial plan.* Map out what your balance sheet, income statement, and cash flow statement will look like every month until you break even. Then, keep going until you reach profitability.
These financial projections should be pragmatic and thorough. Clarify where you’ll get the funding to start your business. If you’re working with investors, list your investment terms. And include every cost you can think of: taxes, depreciation and amortization, operational expenses, and more.
Keep your growth estimates conservative, and explain your math. Don’t expect to gain new clients without increased marketing and sales efforts, and don’t assume you can raise your rates without investing in new tools or team members.
While any charts, graphs, or spreadsheets you create will live in your appendix, you should still spend one to two pages contextualizing them. Back up your numbers by explaining the calculations you’ve done and the assumptions you’ve made in your forecasts.
*Note: The information in this guide is for informational purposes and should not be relied on for legal or tax advice. We suggest working with an attorney or financial advisor to develop a financial plan.Milestones and timelines
While your financial projections offer a timeline for profitability, there may be other major milestones you’re keen to meet. Ask yourself what success looks like at different stages, and create a one-page timeline detailing when you expect to reach each landmark.
This timeline will help you track your progress as you scale your business. If you miss a milestone, you can analyze why—and adjust the rest of your expectations accordingly.
Risk assessment
While it may seem counterintuitive to end on a low note, thoughtfully addressing risks is a great way to build trust. Dedicate one page to the challenges your business may face, and explain how you’ll handle each one.
By thinking through and planning for the worst case scenario, you can show partners and investors that your business is in good hands. You can also confidently take the next steps in your business journey, knowing that starting a website business isn’t as intimidating as it seems.
Appendix
As a reminder, your appendix should hold any visuals referenced in your business plan. That includes examples of work, style guide resources, financial projections, and more.
This appendix can be as long as needed. Between your portfolio, style guide, and financial projections, you’ll easily clear two pages. Just be cognizant of your reader’s time and attention. Only feature resources that are illustrative or impactful, and ensure your appendix is easy to read.
Creating a business plan will show you how to start a web design business, ensuring you’ve accounted for every cost and contingency. Over time—as the industry changes and your goals evolve—you can adapt your business plan to reflect your current ambitions.
Your web design business plan should include:
Executive summary (one to two pages)
Company description (one to two pages)
Market analysis (two to four pages)
Services and portfolio (one to two pages)
Marketing and sales strategies (one to two pages)
Operational plan (one to two pages)
Financial plan (one to two pages)
Milestones and timelines (one page)
Risk assessment (one page)
Appendix (two or more pages)
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