So you have decided to quit flipping burgers and start a home business? Many young people are going this route to make money to put themselves through school. But just because you are young does not mean that you do not have to play by the rules. You may have a great product and a proven plan for advertising, but you are going to need a business plan as well.
What is a business plan? According to the Small Business Administration a business plan is a “written document that outlines measures and actions to define where you want to go and how you will get there.” Basically, a business plan is a plan for where your business is headed and what steps you are going to take to achieve that goal. A business plan helps to eliminate some of the uncertainty involved in starting your own business.
Here are some things to include in your business plan:
Ã?Â· Who will your customers be?
Ã?Â· What is your product?
Ã?Â· What need does your product fill?
Ã?Â· How are you going to get your product to your customers?
Ã?Â· How are you going to pay your start-up costs?
Ã?Â· When are you going to work your business?
Your business plan should start with an introduction. The introduction should give a description of the business and state what your goals are. Also, the introduction should include the ownership of the business, the skills you bring to your business, and what sets your business apart from your competitors.
Once you have set down the ideas for your introduction, it is time to discuss your marketing. First, discuss the product or service you are going to offer. Then you need to state why there is a demand for your product. After that, discuss some of the details of your target market. Make sure you set down ideas for advertising your market. Explain what your product or service is going to cost.
The third section of your business plan is going to be a section on finances. Discuss where your initial start up money is going to come from and how much you are going to need. Show what your first year expenses are going to be. Also, discuss what your return on investment is going to be in the first year, as well as projected income for two years. In this discussion, you should have a break even point indicated, a point at which your income will cover your expenses. Make sure you show how your accounting records are going to be kept.
The fourth section of your business plan is going to be the operations section. Explain what you are going to do day to day to run your business. If you are planning on having anyone else work with you, discuss your hiring procedures. Discuss any equipment you are going to need in this section.
Finally, you need to conclude your business plan. In your conclusion restate your objectives and your commitment to success. With this formula and a great idea, your business plan should not be difficult to write!
You can use your business plan to raise capital for your new business. Show it to people who you would like to borrow money from. If you have a good plan, chances are they will be willing to loan you money. If you intend to ask the bank for money, then a good business plan is a must! Your business plan will also help keep you on track as your run your business. You may not be able to do everything exactly as you planned it, but the business plan will keep your goals in front of you at all times. Having a well-thought-out business plan is essential to running a successful business, no matter how old you are!