If you are at the stage where you are confident in your decision to start a home business, you will want to take the next logical step and that is to write out a professional business plan. A business plan will incorporate data such as what your target market is, how your business differentiates its products or services from the competition, and how your business will be financed.
1. So, What’s A Business Plan?
A business plan is like a big list of questions and answers that people might have about your business. You can’t get funding from a bank without one, so writing a business plan is very important. A business plan speaks volumes on how you have considered your idea from every angle.
2. What’s In A Business Plan?
The most important aspect of a business plan is to define what you offer potential clients or customers. What is your service, exactly? If you can’t write this out in plain english in one or two sentences you are in big trouble.
– What industry are you going to be in?
– Why did you choose that industry?
– Who are Your Customers?
– What areas does your business operate in?
– What makes you different from other people doing the same thing?
– How will your company be financed?
– What are your startup and day-to-day expenses?
3. Profits Or Losses
Most businesses do not turn a profit in their first two years. But you should have graphs and charts showing your projected profits and losses per month for at least the first two years of business. In particular, your plan should demonstrate that you make enough of a profit each month to live – if you doesnt, then it will be considered unfeasible.
4. Look At Other People’s Plans
The average bank investor will look at a thousand business plans before he actually awards a loan to a company. He’s seen it all before and, in truth, is looking for a sound investment. At the very least, the bank wants to know that it will get its money back from its investment. For this reason, you might want to look over a few sample business plans before you write yours to get a feel for what the basics are. A business plan isn’t just a bunch of facts and figures, it’s also a compelling argument that will hopefully sell someone on the idea of your business being feasible. For your own use, also, business plans are invaluable as they assist you to plan out your business so it is profitable.