Home Business Plan
Starting a home business is something that cannot be left to simple luck. It is something that you must research, plan, and lay a foundation for to succeed. It is a life-changing event that should not be left to chance.
While there may be some businesses that start off with little planning, the most successful businesses start with a plan. A business plan will create a structured way for the business to grow.
Why Create A Home Business Plan?
Every business begins with an idea. It is an idea that the entrepreneur believes will serve a purpose and generate income. Creating a business plan takes that idea and creates a way for the goals to be achieved. The simple act of writing down the steps needed to achieve success is, in fact, the first step to that success.
A home business plan will address many important points about the business such as:
- What products or services will the business provide and what void does this fill in the marketplace?
- What are the competitors to this business both locally and on the Internet?
- Is the product or service marketable to the local area or would it be better marketed on the Internet?
- What are the anticipated start-up costs?
- What type of budget will there be to produce and market?
- What is the retail value? Is it comparable to similar products?
- Where should the company be at the 3 month, 6 month and 1 year mark? What is the 5 year goal?
A business plan is used as a guideline and should be reevaluated periodically to make sure that the company is on track with its goals.
What To Include In A Business Plan
A business plan is much more than a few sentences stating what you want to do with your idea. It should contain the following items to make it complete.
- Name and structure of the company
You should have information about the company name, the business structure such as if it is incorporated or if it is a sole proprietorship. You should also include the website address in this part of your plan.
- Mission statement
You need to devise a mission statement for your company that states the purpose and function of your business. This statement will become the core-value of the company, and all goals will be directed at achieving that goal.
- Description of the product or service
You will need to provide detailed information about your business in this section. If you are manufacturing a product, you will need to include information about materials and suppliers. If your business is service oriented, you will need to provide detailed information about how you will provide this service.
This will provide detailed information about your competition, including the price structure of similar services or products. This section also needs to include how your product or service will be different from theirs.
You will need to create a marketing plan to promote your business. Detailed instructions in this area are mandatory. A business that is not known to the public is not profitable.
You will need to set goals at specific increments so that you can check the progress of your business. Goals should be reset at least once a year.
You need to explain where the financing is coming from to fund your start up, and any back up plans for emergencies. Most businesses take a few months before they begin to show a profit, you will need to show how you can make the business run during that period.
Not only will having a business plan help guide your business, it will also help you secure financing. Banks want to see a specific plan of action before funding any type of business. This is true for new or established companies. Having a business plan that is continually updated to reflect the success of the company, will help you receive loans and other funding.