So you’ve reached that stage where you’re ready to get your home business started in every way except one: you need money. Whether it comes from a loan or from investors doesn’t really make too much difference, since there’s one thing that they all need to see before they’ll give you a cent. That thing is your business plan.
Think of your business plan as being like a list of answers to questions that people might have about your home business. You will not get outside funding without one, because the people giving you the funding want to know that you’ve thought through what you’re doing. A business plan says to them ‘I’ve considered this from every angle, and here’s what I’ve come up with’.
What is Your Service? This is the first question every business plan should answer. Just what is it that you plan to do? Tell them which industry you’re going to be in, and why you’ve chosen it.
Who are Your Customers? Once you know what you do, the next thing you need to know is who you’re going to be doing it for, and so that’s the next thing that should be written on the business plan. You should also include your area here.
What Makes You Different? You need to say what the ‘key factors’ are that make your business different to other businesses in its sector. What is it that you’re planning to do to make the business succeed?
What are Your Expenses? Your start-up expenses include any equipment that you need before you can get up-and-running, while your day-to-day expenses are staff costs and supplies.
To finish it all off, you should include a breakdown of projected profit and loss per month for the first year of the business, in the form of a graph. You would work this out by working out a reasonable repayment of any one-off expenses and adding this repayment to the day-to-day expenses, before graphing day-to-day expenses against projected sales. Your business plan should show you making enough of a profit each month to live – if you doesn’t, then it will be considered unfeasible by anyone you show it to.
The best way to figure out the dos and don’ts of business plans is to find real ones – they’re out there on the Internet. Once you’ve seen a few, you can start to get some idea of how much work is going to be involved to write one of your own. Remember, until your business exists for real, the business plan is the only tool you have to show anyone how great it’s going to be.
Gregg Hall is a consultant for online and offline businesses and lives in Navarre Florida. Get reviews on executive business books at executivebusinessbooksummariesdotcom