Description: The Most Important
Business Plan Component
The most important business plan component of a written home business plan is the Description.
You will want to outline in detail exactly how your business will operate. Don’t assume that anything is obvious. This should be the longest business plan component of your document. Get in the details now and you won’t be surprised or annoyed by them later. As you write and edit this business plan component, you will come up with ideas and questions you haven’t yet thought through and that’s good – that’s why you’re going through the planning process now. This gives you the chance to fill in the gaps before you get started.
Here is a basic business plan component outline for the “Description” part of your business plan.
Location: How will your customers find your business?
How will you provide the product or service (retail store, Internet, etc.)?
Will you sell in packages, separately, both, etc.
Where will you buy supplies?
How will you receive payment?
How many employees will you have? What will they do?
Hours of operation
Will you need/get insurance?
What market/society trends will your product/service take advantage of?
This is also where you develop your Unique Selling Proposition (USP).
This is probably the most important business plan component of your document.
Your USP is what separates you from the competition. It will become the foundation for your marketing plan (which we’ll talk about later). Your USP should discuss:
-- What will you do better or different?
-- How will you establish and keep a competitive edge?
This is a fairly simple business plan component. State, in simple, your current situation. This establishes your baseline – you have to know where you are starting and where you want to finish. Then you can plan the path to connect those points.
KEY SUCCESS FACTORS:
In developing this business plan component, we recommend the Four Cornerstones of Business Success:
Self-Discipline: Adhere to the plan. Maintain work schedule even when “don’t feel like it”
Vision: Set goals and keep them in sight
Work Ethic: Plan your work and then Work your Plan
Attitude: A persistent and steadfast approach will be essential. Remember, building a business is not a sprint – it’s a marathon.
Here are some other important factors:
Third Party Support: Will you have access to a support network?
Training / Skill Development: Do you have a personal development plan? Do you have access to a training program to help you develop your business skills?
FINANCIAL SITUATION / NEEDS:
When developing this business plan component for your home business, here are some things to consider:
Remember this document is for yourself, so be honest.
What is your net worth (all assets combined)?
How much liquid capital do you have on hand?
How much debt do you have?
Do you have room in your personal / family budget for a home business?
Good news is you won’t have to make a lot of room in your budget. You will only need $100 a month to realistically stay afloat. We recommend that you make room for a budget $300-$500 a month. We do not recommend going into debt to start a home business.
If you find it difficult to make room for that kind of a budget, we recommend the Financial Freedom Society. They will help you eliminate debt and build up a budget for a home business. If you already have your debt under control, a Currency Exchange Program is a great source to easily generate a cash flow for your business budget.
The “Milestones” business plan component keeps you Goal-oriented, keeps you on track, and keeps you motivated by showing the progress you are making. You’ve already assessed where you are and where (and who) you want to be as a goal. Now, break up that journey into bite-size chunks. Here are some Example Milestones.
Start with where you are and where (and who) you want to be
Business Plan Completed (including Marketing Plan)
First Sales Call
First Website Link Exchange
Website gets Ranked in Search Engines
First Repeat Sale
Revenue Milestones – i.e. $500 in sales a month, $1000, etc.
Consider Non-Financial Milestones as well
-- Skill Development
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Business Plan for Home Business
A Business Plan Component Outline
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