This week for work at home Wednesday I will continue to talk about starting a home based business. Specifically I will discuss putting together a business plan.
It is a common when starting a home based business to want to jump right in and start selling your product and offering your service. I think many small business owners overlook the key step of writing a business plan. Don't make this error and take the time to organize your ideas on paper.
There are 7 key elements of a business plan. I will discuss each and how they can be tailored for a home based business plan.
Step 1 - Executive SummaryThis section should be a short summary of what your company is about, your goals and how the goals will be accomplished. This section should be short and specific. The rest of your plan will detail these goals.Step 2- Company InformationThis section should include your basic information such as address, phone number etc. You can also include any plans for expansion or for employing others.Step 3-Products and ServicesIn this section you should spend time detailing all of your products and services offered. When righting this section think about any future ideas you would like to incorporate and include them here. Writing this section can be a great exercise in fine tuning the products of your company. Be specific and as your business grows return to this section and update often. Step 4- Industry and marketThis section is very important and is one that should be examined and revisited often. With online business there are new competitors surfacing frequently and industry changes faster than ever before.
When discussing your industry take a broad view and include facts that paint a picture of the current climate. The research for this section can really be an exercise in learning about where your company will fit in.
Once you have examined the industry focus on some specific companies within your industry. Look at their product offerings, pricing and anything that sets them apart from the competition. This will allow you to really think about your companies place in the industry.
Step 5 - Management and OrganizationThis section will outline who the stakeholders are of the organization. If you are planning on owning and operating the business as a sole proprietor this section will be short. If not make sure to include clear guidelines of the positions within your company.
Step 6- MarketingThis is the point in which you should discuss exactly how you plan to reach your customers. Write down your basic outline and than include specific action items for each marketing step. It can also be helpful to include time lines and an expected advertising budget.
Step 7 - OperationsWriting this section will help you think through the basic operations of your business. Think about what will need to be accomplished every day and create some processes to ensure daily goals are met.
For a start up business this section should be revisited often. As time goes on you will probably learn from trial and error and discover new ways to become more efficient.
Step 8- Financial projectionsThis section may be difficult as a start up but will help in goal setting. You can use this section to think about how many customers it will take to achieve financial goals. After a few months in business you may need to re-examine this portion.
Once your plan is complete it is important to keep a copy close by and review it often. Make it a working document in which you jot down ideas and revise when needed.
Writing a business plan can be a valuable way for a small business owner to organize ideas and inspire new ones. Take some time to develop your business plan no matter what the size of your venture!
I hope this was helpful and would love to hear from other WAHP parents on this topic!
