Even if you’re starting a home business on an extremely small budget, it’s a good idea to have a business plan. After all, you wouldn’t build a house without a blueprint, so you shouldn’t start a business without a plan.
These quick tips will help you easily devise a home business plan.
Executive summary
This is just a fancy way of saying you need to outline the goals and objectives of your home business. It is, however, vital if you’re seeking financial backing from lending institutions. They will want to know what your strategy is for business.
Origins
The second part of your home business plan should tell about the origins of your company. You want to include how you and/or your home business partner came up with the idea for your business.
Goals
Okay, these should be outlined in a few paragraphs. It should answer questions such as how quickly do you think your home business will grow? Who are your customers or clients? How do propose to reach them? State your company’s goals as clearly and succinctly as possible.
Biographies
The biographies should be of yourself, your partner and any other managers in your home business. They should include background information and responsibilities they have in your business.
Product or service
Your home business must have a product or perform a service. In your business plan, you want to describe this as clearly and thoroughly as possible.
Market potential
This is the part of your home business plan where you show you’ve done your homework in regard to the need and market for your product or service. If your company is a locally based business, then you need to show the demand or potential within the area you’ll be operating. If your home business is primarily web-based, then you will want to show the demand via the Internet.
Marketing strategy
In this section of your home business plan you want to describe who your target market is, what marketing tools you’ll use to reach them, and how much you plan to spend to market your home business.
Three-to-five-year financial plan
Here you’ll want to have a summary of financial forecasts for your home business, along with the formula for how you calculated the projected financial growth. This is also the place where you summarize how much money you would want to borrow.
As you can see, creating a business plan for your home business is a lot easier than you might have thought. Now break through that block in your head that’s saying no and get started. The sooner you do, the sooner your home business will be up and running-profitably.
