| The importance of having a business plan cannot be | | | | Future direction of your business. If you clearly identify |
| underestimated. Very few businesses survive without | | | | where your business will be five years from now, you |
| a business plan. | | | | can effectively formulate a plan that to support your |
| These questions might help you get started writing: | | | | business goal. Your expertise, needs, knowledge, |
| 1. What is it that your business provides and what | | | | leadership abilities, resources, level of risk, and the |
| needs does it fill in the market? | | | | nature of your business are necessary and important |
| 2. Who are your potential customers and why will they | | | | factors you must consider when identifying your |
| purchase from you instead? | | | | personal business goals. Clearly state your business |
| 3. How do you plan to reach your potential | | | | goal in your plan. |
| customers? | | | | The goal. Will the business plan be used to secure |
| 4. Do you have the financial resources to put up your | | | | funding or as a guide to operating the business or |
| business? If not, where do you plan to get it? | | | | both? If you are trying to secure funding, concentrate |
| As soon as you have a workable idea for a business, | | | | on the financial requirements of the business: state the |
| immediately begin to put together your business plan. | | | | amount of money required, how it will be spent; be |
| You should do an extensive market research for your | | | | sure to include a repayment schedule as well. If the |
| product or service. It is very important that you are | | | | plan is going to be an internal, functional guide, include |
| able to determine a) how soon your product will pay | | | | the how-to's of accomplishing specific goals and |
| for itself and b) what your prospective clients really | | | | milestones with emphasis on the business process. |
| need. | | | | The goals of a functional plan are to measure |
| The market's dominant rule for a business to be | | | | operational progress, analysis of planning projections, |
| successful is that the product or service it sells must | | | | predict capital requirements, evaluate addition or |
| be driven by market demand. | | | | elimination of products or services, and assess |
| In developing and formulating a plan, you have to | | | | operational procedures. |
| anticipate and project the different ways your | | | | Home-based businesses are gaining acceptance as a |
| company will make money. An objective examination | | | | viable business opportunity and not as a simple hobby |
| and assessment of your product or service | | | | anymore. This means even a home-based business |
| marketability is an absolute requirement. The planning | | | | needs a plan to guide its growth and future |
| stage is the best time to determine flaws and | | | | development. Depending on your business, you may |
| shortcomings of your business scheme rather than | | | | put greater emphasis on particular areas of your plan |
| during the operational stage, by then it is already too | | | | like meetings with clients (service provider), logistics |
| late. Correcting the flaws of your business while at the | | | | plans and techniques (goods provider). |
| planning stage saves you money in the end. | | | | Writing the Plan |
| Defining Your Business Plan | | | | There is no standard formula for the structure of a |
| Essentially this contain a description of your business, | | | | plan; however, it is generally divided into four sections: |
| an executive summary, the primary target market, the | | | | Description of the Business; Marketing; Finance; and |
| opportunity, the management team, financial | | | | Management. |
| projections, and so on. | | | | A business plan also includes an executive summary, |
| It should be easy to read, clear, concise and to the | | | | financial projections and other supporting documents |
| point. It should also contain the specific milestones for | | | | but these are considered as attachments. |
| progress so that the success of the company is | | | | Including as much information as you can by describing |
| measurable against well-defined objectives. | | | | each aspect of your business in detail makes it easier |
| Prospective investors use the business plan as a tool | | | | for you to run the business, and for prospective |
| to gauge management's ability to actually implement | | | | partners and investors to understand the viability of |
| the plan. | | | | venture. |