Have A Solid Plan For Your Home Business
If you want to be successful with your home business you must have a solid plan for your home business. Too often home based business people end up with no more than a “business plan of the mind.” That is a semi business plan that is hidden in the recesses of the mind. Though common, this is not a good idea.
For me, a business plan is a roadmap or a book of instructions. I know where I am going and what is up next. This map enables me to see the what I am doing now in the context of the overall plan. It answers two of my three major questions:
- What am I trying to do?
- How am I trying to do it?
And it gives me the feedback on the third major question:
- How is it working out?
The answers to these three questions drive my business and my business plan.
Types Of Business Plans
A business plan is a traditional business document that analyzes a business’ operation plan, market, and financials. There are two types of business plans:
A formal business is required if you are seeking to raise funds from investors, financial institutions, or even other family members. There is a lot of emphases placed on the financial aspects of the plan.
An informal business plan is generally used for internal purposes only. This is what I use. I am not in need of financial funding for a freelance writing business.
The rest of this post is focused on creating an informal business plan. For help in creating a formal plan, try this link for a standard business plan outline.
How To Create a Business Plan
You have three good options for creating your home business plan:
- Hire someone to create it for you.
- Use an online tool like Enloop.
- Write the document yourself.
I chose to write the plan myself. My intent was to produce a plan that is uniquely mine. First, I did my research and looked at the online plans to be better informed. After that, I started writing.
Again the focus of this article is creating an informal home business plan.
This is the “cliff-notes” version of the plan. This is the part that will be written last and is a concise version of the information detailed below. I read my executive summary daily. It is my vision statement.
- Who are you as a company?
- What do you do?
- Why do business with your company?
- What are your basic operations?
What are the strengths, weaknesses, opportunities, and threats your company will face?
An outline of your sales plan, pricing model(s), advertising strategies and communication plan.
What is your structure? Are you a sole proprietorship or an LLC? Will you have employees or outsource your needs? What are the costs?
This is the “nightmare” section for most folks. Do your due diligence. You will need:
- A balance sheet
- An income statement
- A breakeven analysis
- Cash flow statement
You need to have a solid business plan for your home business. It will guide, correct, and empower you to reach your business goals. I consider my plan to be a “living document.” It is updated and modified on a regular basis. Take your time in preparing your plan. Write it out and then re-write it. Keep at it. Read the executive summary every business day. Having a solid plan for your home business will help you succeed!