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Do You Have a
Plan?
Copyright 2004 Dirk Wagner
Writing a business plan for a home
based business is every bit as important as writing a business plan for
a conventional outside the home business. The lack of a concrete plan can
be linked to many businesses failing before they realize their
goals.
There are numerous software programs available online
for creating business plans or you may want to consult an attorney or
accountant. However, if you intend on doing it yourself there are some
general guidelines for you to follow.
So Just What is a Business
Plan?
A business plan is a document that you create to determine what
type of business you intend to run and how it will become profitable. You can
think of it as a recipe to ensure your profitability. A business plan should
be a list of strategies (ingredients) you use to become a successful home
business owner.
Writing out your Business Plan.
Get yourself a
loose-leaf binder or notebook, a pencil, and
get to work. You will find that
you will be writing and erasing a lot of information as you start to think
about your business plan. The actual number of pages is up to you, but you
want to be as thorough as possible when writing your plan. Most business
plans run anywhere between 15-20 pages. Remember this is your business and
you want to make it successful, so keep writing until you get tired, and
then write another page! You don’t need to finish it all in one day, but if
you are on a roll then keep going, those answers may not be there
tomorrow.
General Guidelines for Writing a Business Plan.
Listed
below are some general guidelines to use when putting your business plan down
to paper. These guidelines are by no means a definitive list, just
suggestions for getting you started with writing a business plan for
your home business. Note: If you are trying to raise money from investors
or trying to secure a loan through a bank, your business plan will differ
from writing a business plan for
a self funded business.
The
Concept:
You will write about what your business is all about.
Your products and/or service and how it relates to
the marketplace.
Play the name game:
Obviously you will need to
pick a name for your business, if you have not already done so, the name
should be relevant to what product or service you are promoting.
Use search engines to do a check for similar products and services, so you
do not duplicate the domain name of another online/offline business. Your
name should be brand-able with your product or service.
Mission
Statement:
This should describe what your business stands for. What about
your business is unique in comparison to your competition. How does your
product and/or service help your customers.
Goals with Vision:
Here
you need to clearly define your goals for the success of your business. Make
short and long term goals. Set time frames and set goals with vision, how do
you want your business to look in 5 years, 10 years, etc.
Market
Analysis:
Clearly define whom your clients and competition will be. You
will need to look at foreseeable changes in your chosen industry in the
future, whether it be with new technology or new opportunities to grow your
business. Research and networking is the key to finding out how your business
may
change, if at all.
Action Plan:
Probably the most important
page in your business plan! Here is where you will write about your sales and
marketing strategies for building your successful home business. You will
have to create a marketing plan that includes online and offline promotion
strategies for building your client base.
Financial Plan:
A few
home businesses operate without a budget, however when you get that visa
statement at the end of the month and find out your broke, then you will have
a problem. Clearly a budget is just good business practice and
makes sense. You will need to break it down to what’s coming in and what’s
going out. Some important information that should be included in your
financial plan are:
- Advertising costs on a monthly basis.
- Cost
analysis to produce your product and/or service.
- Cost of getting your
product and/or service to your
customers.
- Expected cash flow to be
received (sales during that
period)
- Dates of expected pay outs. You need
to make sure you
keep up with any payments you may have such as hosting
fees
for your website, auto responder fees, etc.
As stated earlier,
this is a general guideline to writing a
business plan. Doing research and
consulting with others is
good way to find out what types of information you
should
include in your business plan. Good luck!
About the
Author:
Dirk Wagner is CEO and owner of http://team4success.biz and the free, easy
to install #1 home business toolbar with automated updates.A website
dedicated to helping the home-based business entrepreneur start and succeed
with there very own home-based business.
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