subject: Your Home Based Business Plan [print this page] To get started with your home based business, the first requirement to activate your status is to prepare a comprehensive business plan. To encourage people to invest in your business; this is the first and foremost requirement. In fact, many investors like bankers, angel investors, venture capitalist can help you start your business and provide fund, if only you possess a good plan.
To create your business plan, you don't need any writer to develop it. All you need to keep in mind is that the plan should be realistic and focused to the subject. Additionally, you will also have to show them that you are 100% capable of accomplishing the target because you have the required talent, tools, system, workforce etc, and all the necessary arrangements in place. This particular document is not a one-time requirement to either start or expand a business, in fact you will often have to refer to it and also update it from time to time.
Do you require a business plan?
The answer to this question is no. Not all home based business entrepreneurs develop business plans. However, if you are seeking financial help from investors then you surely need a business plan to pave the road to success.
However, you don't need to produce the business plan always. For instance, if you approach a venture capitalist then you obviously need a business plan. On the other hand, if you approach a banker for loan to start your home based business, then production of the business plan is a must. Now, if you apply for a loan to expand an already established business, then the banker might skip the business plan.
How to write a home based business plan?
Before I answer this question let me explain the contents of a business plan. Your business plan should clearly state that the business has the capacity to generate enough returns for not only clearing the debts and loans but also covering the general business expenses. The plan should not be too long but a very concise write-up, just enough to put forward your ideas and convey the message across the table.
1. The first part will be an Executive Summary that will highlight your business plan. Your writing should be convincing and worth considering, which should not be more than two pages.
2. Second part is called the Company Summary. As the name implies, it is all about your company. In this area you will have to mention the company's background history, ownership details and everything about the company.
3. In the third section, mention about your Products and or Services. Here you are supposed to describe your products and or services. Moreover, you will also need to give the distinguishing features of your products or services. In other words, highlight the points that will make people consider your products and or services to be helpful.
4. The fourth part will be about the current Market Analysis. In this section you will have to state the current market condition of your product and or services.
5. The fifth part will deal with your Strategy and Implementation. It's more like how you are planning to sell your product and or services in order to accomplish your targets and generate revenue.
6. The sixth point is all about Management Summary.
7. Though this is the last point but I think it is the most important one. You will have to write the Financial Plan. This deals with all money related matters like profits, sales, cash flow etc.
These are also applicable for Internet home based business, if you need funding.
by: Jim Kildea
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