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BUSINESS
PLAN
Business Plans - What Do
They Include?
Ok... so you've finally reached that stage in the
development of your home business to get started. You've
done the research, you have a game plan and you're ready
to go except for one small detail... you need money.
Whether it comes from a loan or from investors it
doesn't matter but you need a good dose of seed money to
put all your hard work and planning into action.
However, regardless of who hears your money pitch before
they give you a dime they will want see your business
plan.
Business Plan - What Is It?
A good way to think of a business plan is that's it's a
document that provide answers to the type of questions
anyone who may provide financing would like to know
about your home business. You will not get outside
funding without one, because the people giving you the
funding will insist on one because it helps them to know
that you’ve thought through what you’re proposing to do.
A business plan says to them... "I’ve considered this
from every angle, and here’s what I’ve come up with".
Business Plan - What Does It Include?
What is your product or service? This is the first
question every business plan should answer. You must
explain in the clear, concise language what in the world
you plan to produce or what service you plan to provide.
You will also want to include why you've chosen this
particular product or service.
Who are Your Customers? After you've explained your
product or service, the next step is to identify who you
plan to sell your product or service too and why. The
demographics (age, sex, language, country, state or
city, income, etc.) You need to clearly identify your
customers in order to properly target your advertising,
packaging, pricing, et.
What Makes You Different? You need to identify the
"primary factors" that will make your business different
than other businesses you'll be competing with. What
niche are you filling that they are not or what do you
plan to do to fill a particular void in the market that
you've identified?
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.
Following is a Simplified Example of Business Plan
This a a simplified and shortened version of a business
plan. In the real world... each one of the following
sections would be 1 - 2 pages in length. That being
said... in most instances it's better to be as brief as
possible. Only add information if your potential backers
request it. It's a bad idea to go into too much detail
in your plan. You’re not trying to explain everything
down to the nth detail, just the basics of the business
and why they should give you the money you need to
launch it. And always focus on profit.
Catering Plus
Nature of Business: The business will be a home-based
catering company, producing luxury food for special
occasions such as birthdays and weddings. We will
provide a comprehensive catering service, while
specializing in high end customized cakes, which have a
higher profit margin than other foods.
Target Market: Our catering business will be aimed at
middle-class customers who desire a top-of-the-line
catering but must operate on a budget. Our initial
market area will consist of Mytown and the affluent area
of Theretown.
Key Factors: We will only use commerical grade
ingredients purchased from wholesalers and provide top
quality design and service. This will allow us to
provide food that looks tastes great, while keeping
costs as low as possible.
Expenses: Beause I will be using my kitchen and making
the food myself, there are only two real expenses: The
purchase of an industrial grade mixer and then the
day-to-day cost of supplies. I've attached a suppliers’
letter listing prices. Our research has shown that this
supplier offers the best value for start-ups.
To wrap it up, you should include a breakdown of both
projected profit and loss per month (in graph form)for
the first year in business. Show one-time and day-to-day
expenses versus projected profit to indicate how you
will pay-off your loan. Your business plan should show
you making enough of a profit each month to live on – if
it doesn’t, then it may be considered unfeasible.
Study a Few Real-World Business Plans
The best way to get a real a feel for the dos and do
nots of a business plans is to find real-world plans
that have already been approved and study them. A good
place to start is the internet. Once you’ve studied a
few, you will get a better feel for how much work will
be involved in putting your business plan together.
Remember, until your business exists for real, the
business plan is the only tool you have to sell
prospective backers on how great your business is going
to be
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