Welcome to BIG AD EMAIL EZINE MAY 29th 2004 issue
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{ARTICLE 1}
Do You Have a Plan?
Copyright 2004 Dirk Wagner
Writing a business plan for a home based business is every
bit as important as writing a business plan for a
conventional outside the home business. The lack of a
concrete plan can be linked to many businesses failing
before they realize their goals.
There are numerous software programs available online for
creating business plans or you may want to consult an
attorney or accountant. However, if you intend on doing it
yourself there are some general guidelines for you to
follow.
So Just What is a Business Plan?
A business plan is a document that you create to determine
what type of business you intend to run and how it will
become profitable. You can think of it as a recipe to
ensure your profitability. A business plan should be a list
of strategies (ingredients) you use to become a successful
home business owner.
Writing out your Business Plan.
Get yourself a loose-leaf binder or notebook, a pencil, and
get to work. You will find that you will be writing and
erasing a lot of information as you start to think about
your business plan. The actual number of pages is up to
you, but you want to be as thorough as possible when
writing your plan. Most business plans run anywhere between
15-20 pages. Remember this is your business and you want to
make it successful, so keep writing until you get tired,
and then write another page! You don’t need to finish it
all in one day, but if you are on a roll then keep going,
those answers may not be there tomorrow.
General Guidelines for Writing a Business Plan.
Listed below are some general guidelines to use when
putting your business plan down to paper. These guidelines
are by no means a definitive list, just suggestions for
getting you started with writing a business plan for your
home business. Note: If you are trying to raise money from
investors or trying to secure a loan through a bank, your
business plan will differ from writing a business plan for
a self funded business.
The Concept:
You will write about what your business is all about. Your
products and/or service and how it relates to the
marketplace.
Play the name game:
Obviously you will need to pick a name for your business,
if you have not already done so, the name should be
relevant to what product or service you are promoting. Use
search engines to do a check for similar products and
services, so you do not duplicate the domain name of
another online/offline business. Your name should be
brand-able with your product or service.
Mission Statement:
This should describe what your business stands for. What
about your business is unique in comparison to your
competition. How does your product and/or service help your
customers.
Goals with Vision:
Here you need to clearly define your goals for the success
of your business. Make short and long term goals. Set time
frames and set goals with vision, how do you want your
business to look in 5 years, 10 years, etc.
Market Analysis:
Clearly define whom your clients and competition will be.
You will need to look at foreseeable changes in your chosen
industry in the future, whether it be with new technology
or new opportunities to grow your business. Research and
networking is the key to finding out how your business may
change, if at all.
Action Plan:
Probably the most important page in your business plan!
Here is where you will write about your sales and marketing
strategies for building your successful home business. You
will have to create a marketing plan that includes online
and offline promotion strategies for building your client
base.
Financial Plan:
A few home businesses operate without a budget, however
when you get that visa statement at the end of the month
and find out your broke, then you will have a problem.
Clearly a budget is just good business practice and makes
sense. You will need to break it down to what’s coming in
and what’s going out. Some important information that
should be included in your financial plan are:
- Advertising costs on a monthly basis.
- Cost analysis to produce your product and/or service.
- Cost of getting your product and/or service to your
customers.
- Expected cash flow to be received (sales during that
period)
- Dates of expected pay outs. You need to make sure you
keep up with any payments you may have such as hosting fees
for your website, auto responder fees, etc.
As stated earlier, this is a general guideline to writing a
business plan. Doing research and consulting with others is
good way to find out what types of information you should
include in your business plan. Good luck!
----------------------------------------------------
Dirk Wagner is CEO and owner of http://team4success.biz and
the free, easy to install #1 home business toolbar with
automated updates.A website dedicated to helping the
home-based business entrepreneur start and succeed with
there very own home-based business.
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