Occasionally, we just want to see how carefully our readers are going through the blogs.  No doubt, there is a lot out there about starting and running the successful MLM business.  From Free Manuals to big-ticket consulting, it’s all there to help you successfully launch your MLM.

We’ve witnessed some great and some not-so-great MLM launch events, and here is a simple lesson we have learned about planning a successful MLM launch meeting.

Your MLM launch event is quite possibly the most important event you will ever hold.  It can be the spark that starts a wildfire of momentum.  The tasks—and timing of those tasks— associated with the MLM launch event are outlined in a very detailed project plan that we follow for our clients.  Because of the importance of this event, we provide this tool for our clients to use for preparing the MLM launch event to help them consider and organize all the important details that must be addressed.  If you will send me an email and request our detailed MLM launch event checklist–be sure to mention this blog in your email–I’ll send it to you for free, just for asking.  Be sure to email terrel@launchsmart.com and put “MLM Launch Event Checklist” in the subject line.  Write a brief note and tell me how you are planning to use the checklist.

In any business, training and management are keys to success, but in MLM companies, they are more than that.  Field training and development, referring to the training and development of distributors and their customers, comprise the fuel mixture that propels your organization forward.

MLM Training and development systems must be tied to specific needs at each phase of a distributor’s lifecycle in your company, beginning with their very first exposure to your company.  At the heart of retention is expectations, and therefore at the heart of training must also be expectations—knowing the distributors’ and / customers’ expectations, what do they need to be able to do (behaviors) to attain their expectations, and what training and development support do they need to be able to perform those behaviors.  All training should be behavior / performance driven.

In addition to providing the information and imparting the skills that are vital to distributor success, proper training and development ensure compliance with sensitive legal imperatives.  In states that have enacted business opportunity and multilevel MLM distribution statutes, you are obliged to perform a bona fide supervisory role with your sales organization with respect to the sale and distribution of your products and services.

An effective MLM distributor training system examines the essentials behind effective field training and development in direct selling.  It examines the objectives of MLM distributor training, the foundation for training systems, the essential topics, the most effective vehicles for delivering training and ongoing development, the tools for evaluating what is working, and some of the best practices that we have observed in our quest to understand how retention leaders have succeeded.

As your ideas and dreams take root and you decide that you are going to start a direct selling company or create a new division to market through direct selling channels, you realize it’s not going to be so simple.  Smarts and hard work will help.  And an essential step forward is your business plan so that you know

What Is an MLM Business Plan?

An MLM Business Plan is a comprehensive written presentation of your business idea.  A good plan outlines what the business really is, what it will do, and how it will be launched.  In addition to the standard elements of business plans, the MLM business plan tackles the additional complexities of such elements as forecasting compensation payouts, growth modeling, inventory planning in fast-growth environments, and distributor attrition (inactives).  An MLM Business Plan is especially useful for MLM startups looking for potential founding distributors, investment capital, and manufacturers who will offer favorable terms.

How Do I Get Started?

Start preparing for your MLM business plan by tackling some key questions.

• What will you really be offering and why will people buy it?
• Where will you get the money to launch and run your business?
• What market need will you be satisfying?
• How will your growth strategy work, and what assumptions are you relying on?

A business plan should have the following sections:

1. Executive summary: This is a summary of the basic idea presented powerfully to hold the reader’s attention and to spark their thinking while reinforcing your capabilities to effectively present your ideas.

2. Business description: This is a presentation of the framework for the MLM business plan and what it’s all about, what you are truly taking to market, why you have selected the MLM business plan for your marketing channel, and so forth.

3. Market strategies: After researching and analyzing the target market and the needs that your business offering will meet, present the findings and ideas, how the new MLM business will be positioned in the market, how it will stand out and what circumstances will most assure its success.

4. Competitive analysis: Present a discussion of competitors, their products and strategies, and how the MLM startup will have a competitive edge.  Be sure to look outside the world of network marketing and direct selling, for much of the competition exists in places you may not be looking.

5. Design and development: How will you produce, package, and market the service or product?  How will its design and function set it apart?  What will it look like when it’s ready?

6. Operations and management plan: Present the basics of how the business will operate, and what are the underlying operations strategies from the first day of launch.

7. Financial factors: The growth and financial model must include the discipline of income statement and cash flow analysis, and the better practice is to present key ratios that investors consider.

Potential investors often expect an appendix that presents resumes of the leadership team, supporting market research, and other information on which you have relied to reach your decisions to that point.

Starting an MLM business is exciting, and doing your homework is vital.  In addition to the resources available at the LaunchSmart website, including model business plan, financial forecasting for the MLM business plan, and a host of useful resources, the US Small Business Association offers an online tutorial on writing a business plan

While the idea of starting a business is exciting, doing the homework is critical.  In addition to the tools and services we provide, the US Small Business Administration offers an online tutorial on writing a business plan (http://app1.sba.gov/training/sbabp/index.htm).  We can also help you to fill in the important details relating to MLM Business Planning, or feel free to contact us for assistance in writing your complete MLM Business Plan.