If you watched the Stream On competition Twitch put on, you know it was a lot of fun. They did a fantastic job finding participants with different types of streams. Personally, it helped me broaden the content I watch. Additionally, they did an awesome job challenging the participants to broaden their stream beyond their routine.
However, being the business/finance nerd that I am there was one thing that impressed me perhaps more than anything else from the show. BanzaiBaby’s business plan for what she’d do with the money if she won blew me away. Let’s talk why but we’ll start with why you need a business plan.
Why do I need a business plan?
You need a business plan to help your business succeed. Yes, it’s totally possible to have a business succeed without a business plan. However, by planning ahead you’re increasing your odds of success.
One of the main benefits of doing a business plan is that it forces you to actually focus on your business. What do you want your business to be? What helps you lead the life you want to live? This can be extremely helpful if you’re trying to work with someone new. It could be a sponsor that needs to know more of the essence of your business to make sure you’re a good fit. Similarly, it can provide great insight to an emote artist or someone helping you develop your full brand.
Another benefit is that if you’ve planned for some future situations you’re more likely to be able to deal with the twists and turns in the road of entrepreneurship. True, your plan may not contain the exact situations that will arise. However, planning for some ups and downs and how you’d deal with them gives you more resilience even if it’s a slightly different situation.
What goes in to a business plan?
So much stuff. Check out Bplans for a ton of resources on building out your own plan.
First, you should mimic all of the info that BanzaiBaby has in her business plan. Add in info about who you are, your brand, your vision for the future, and some info on the challenges and opportunities that you see.
If this is an internal plan then you should really dive in to depth on those items. The value from that is the thinking that you have to do when putting figurative (or literal) pen to paper. If it’s external (a plan that you’d share with other groups, like sponsors or vendors) I’d recommend making the internal one first and then creating the external-facing one as an executive summary.
Second, I like having a couple of cash flow projections in a business plan. Account for at least three different scenarios including the average expectation, what it could look like if things went well, and what it would look like if things went badly.
Third, it’s really important to analyze the market you live in and some of your competitors/collaborators. How is it that you make money/sell product? Who might be someone you might compete with or work with? Are there a lot of other people doing what you’re doing? If so, what makes you different?
Fourth, who does the work in your business? As a streamer you’ll fill most of the roles. However, some tasks like art can and should be outsourced.
Finally, you should write up exit conditions. What would be a reason to close down shop? It’s not fun to think about but it’s important to consider.
What made BanzaiBaby’s plan awesome?
First, it wasn’t crazy long. It gave a good overview of her vision but ultimately she was using it as an executive summary to make a pitch so it’s more effective when it’s shorter. She may have a more detailed, internal plan.
The background info on who participates in the stream and their vision paints a clear picture of what they’re trying to achieve and why they’re the right people to do it. This is key. If you’re pitching at all your idea is important but showing why you’re the one to do it is even more important.
Their values are clear and provide guidance on how they will conduct business. Additionally, they contribute to the vision. It’s not where the platform is today it’s where they hope to help drive the platform. Those kinds of first to market (or early to market) opportunities can be amazing.
She also has some awesome stats on Twitch viewership and her viewership. She compares and contrasts them to show why she has a unique and compelling reason to claim that she could best use the funding she’s seeking. Remember, this is a pitch for why she should win Stream On.
Conclusion
It’s very important to build out a business plan for your stream assuming your stream isn’t just a hobby. Not only is it a practical exercise to acquaint you with some of the reality of running your own business but it will help you do better because it gives you direction.
Luckily for you, BanzaiBaby has a publicly-available, awesome template you can start with. Read through what she put together, appreciate the awesome vision she’s pursuing, and hopefully that’ll help you realize what you need to do. Take inspiration from her inspiration.
You don’t have to figure this out alone. This is what we do- help streamers make great money decisions. If that’s something that sounds interesting to you reach out me or schedule some time for a free consult. You can check out what I do here.
