Now that you know your target market and business namge (see “Home Business Startup: Know Your Name…” for more information), you can now move on to the all-important business plan.

You should view your business plan as the guiding document to all of your business processes. Though it works as somewhat of a rulebook, keep in mind that aspects of the plan should be adjusted over time, as your business grows or should you change your business model.

Additionally, as a guiding document, you business plan will be written in the “voice” of your business and its strategy. With that in mind, with some editing, many business-related documents---including training materials, marketing copy and other items--may stem from the plan itself.

Depending on your audience, you business plan may be fairly complex, ranging from a basic executive summary to an investor-grade business plan with financial modeling. Nonetheless, there are some elements that are inherent to all business plans, and should be included in yours:

• Company Description: Here you will describe the activities (products and/or services sold), history, ownership, business type, and mission of your business.

• Market Analysis and Plan: In this section, you will describe your target market--who they are, what they buy, or why this market is a fit with your product or service. Then, you will delineate your marketing plan based on this demographic information--how you may advertise or promote your business, or how you may distribute or sell your products.

• Operations/Management Plan: It is here that you will describe the roles and responsibilities related to your business, as well as your staffing needs.

• Financial Plan: In this section, you will go into detail as to how your business generates revenues, pays expenses, and will be profitable. You may want to include projections that clarify how long it may take to reach profitability, as well as growth expectations and typical expenses.

After developing all of these areas of your business plan, the next step is to use the document to obtain the financing to run your business. If you have unusually low overhead for your business this may not be necessary, but either way you have a document that will direct your business activities.

If you are unable to perform the writing of the different processes of your business, you can always outsource it, as well as accounting and legal needs to business service professionals.

Finally, should you not want to go through all of the planning and development to start a business, there may be opportunities to buy a business already in operation, or buy a franchise. However, you may lose some of the freedom of home-based operations.

References

CORPAMERICA. Start a Business

Noreen Berman. How to Start a Business in Your Own Home

Don Silver. Business Plans