How To Create Your Business Plan
Creating your Business Plan is
one of the most important steps in running a home business successfully. Like any business you need to set clear concise goals with deadlines and a plan to achieve those goals. Many people who do not take the time to create a business plan fail because they do not have a clear path for their business.
When creating your business plan for the year I will suggest you break the goals into each of the four quarters of a year. It does not matter when you start your fiscal year for your business plan. Most home businesses will use the calendar year.
The reason for breaking your business plan into four quarters is to be able to make adjustments to the pending quarters as you go. Many unforeseen things happen throughout the year and you will need to be able to make adjustments for events that happen you had not counted on. I suggest reviewing your business plan at the middle of the 3rd month of each quarter to make adjustments as necessary.
There are a few basic questions you can answer while creating your business plan that will help you clearly define your business and the goals for the year. Here are the very basic questions you will need to answer for a clear business plan:
- Detail the business opportunity that you want to capitalize. (This could be a primary program or a group of affiliate programs or a combination of those two.)
2. Outline annual sales and profit potential. (Try to be very realistic here and not try to achieve too much at one time)
3. Give a brief summary of an overview of the industry. (A little history and some current trends)
4. Projected position for the future. (Your business’s projected future position)
5. Potential customers. (Identify and describe who your potential customers are. This is an extremely important step in your business plan! This is where your sales will come from.)
6. Define who your direct competitors are. (Include in this analysis the company’s name, sales from previous year, net profit/loss, how many in the company, and what their market share is)
7. Define your marketing budget for each quarter. (This should increase as each quarter is reached so your business grows)
8. Create a detailed marketing plan by month based on the budget. (This plan should include each marketing strategy, frequency of use based on the marketing budget. Make sure you define a tracking method for your marketing so you know what the return on your investment is by month.)
This outline is just a very basic business plan but a good start for those who have never created one before. There are many places online to purchase software that will help in creating a business plan, but I find that just answering the above questions in detail, reviewing them on a quarterly basis, and making adjustments as necessary will help in moving your business forward.
Enjoy creating your business plan and leave your comment below. I love hearing about other methods for creating a business plan or a story to share!