One of the best things you can
do for yourself before you start your business is to sit down and write your
business plan.
Many people who want to
start a home business ask if they really NEED a business plan, to which I ask
if they really NEED to start a home business.
Writing a business plan for
your home based business should be considered essential for many reasons, the
most obvious of which is that a business plan is required if you are going to
seek funding.
A business plan will also
help you gain focus and think through each aspect of your business. It will
also help you remain focused when you get discouraged or feel overwhelmed. You
can figure out how to deal with possible problems before they occur.
Business plans will vary
widely, depending upon what type of business you have, so what may work well
for one business may not be suitable for another.
Your business plan doesn't
have to be very long, but does have to present you and your business, goals -
both short and long term, intentions, and detailed information about your business,
in the very best possible light.
Elements of a Business Plan
Include:
Objectives
Answer the following
questions:
What exactly do you want to
accomplish? What are your goals for your business?
Describe your business
What is it that you want to do? What products
will you produce? What is your business philosophy?
Define your market
What market/s will you focus
on? Is there a need for your product or service? Who are you selling to? Why
will your business have a competitive edge over other businesses? Do you have a
niche?
Draw up a plan of action
Explain how you intend to
meet your goals. How will you produce the product/service? How will your
customers receive your goods?
Define your staff, or
suppliers, if any.
Make a time table. Do you
expect to reach a certain goal in a specific amount of time?
Calculate your financial requirements
Capital costs. How much
capital will you need to start-up? Give detailed information about how the
capital will be spent on items such as equipment, furniture, appliances etc.
Other monthly costs
such as license fees, electricity, transport, packaging, labor, etc.
Sales forecast. How much
do you estimate your monthly income to be over the next 12 months? What profit
will you make?
Sales and marketing strategy. How and to whom will you market your product?
Pricing. Is your
pricing realistic? Is it competitive enough to attract buyers? Is it
sustainable and will it yield a profit?
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