A business plan is key to
success in a home based business. The following elements should
be included in a home business plan:
Executive Summary
This is a one page summary of the highlights of
your home based business plan. It summarizes all of the other
elements in your plan and should be written last.
Description of Home Based
Business
Write a general description of the industry in
which your business participates and a detailed description of
your business including the legal structure, history if it is
an existing business or whether it is a start-up or franchise.
Describe the product or service you plan to provide in your
home based business.
Product or Services
Describe your product or service in detail. If
you are manufacturing the product, describe the process. If you
are purchasing products to sell, describe the method by which
will receive or be supplied with the product. If your business
is a service, describe the service you will provide and its
benefits.
Market Analysis
Describe your customer, your market, where your
home based business market is located and how you plan to reach
them.
Management
List your management team. Describe how the
organization works and who will be responsible for what tasks.
Resumes should be included in an appendix.
Financial Analysis
If you are seeking financing, investors, or
partners, this section is important. You should include your
projected Profit and Loss statement, Cash Flow statement, and
Break-Even Analysis. Financial institutions and investors may
require additional information. Check with them for their
requirements.
Cover Page
This is the first page a potential investor or
loan officer will see. It should make a good impression. You
may want to number your copies if you are passing them out to
more than one financial institution or investor. This will help
you keep track of them and to remember to get them back when a
decision has been made. You should also create one to identify
the document even if it is just for you.
Table of Contents
The table of contents lists the items included
in the plan. Pages should be numbered.
Appendix
Supporting documents like licenses, resumes,
and additional material supporting your idea should be included
in this section. Each should be listed in the Table of Contents
with a page number so that the person viewing the home based
business plan ca easily find them.
There are different feelings as to whether a
business plan is necessary for a home based business. A
business plan is your blueprint. It can be a formal document
which may be submitted to investors in your home based business
or it can be informal. You can use the informal plan to keep
your thoughts and directions for the business on track. It will
aid you in managing and growing your home based business
opportunity.