Home business owners often underestimate their business. If you start a home business, respect the importance and value of your home business. A home business is not a fake business. A home business can be more stable than a wage job. A home business can earn millions. Where the business is located really doesn’t matter as much as you may think. The location doesn’t define either legitimacy or potential.
Many people think of business plans as a document you create if you need a bank loan or investors, but the truth is, the business plan is a lot more useful than that. A business plan helps you evaluate whether your idea is feasible or not.
Plus, your business plan will also inform your marketing, operations, and pretty much everything you do. Not only that, but the business plan can also be used every single year as you update parts of it to make it even more accurate.
So yes, the short answer is that if you’re going to start a successful business that you enjoy, you need a business plan. Studies show that if you have a well-thought-out business plan, you boost your chances of success by more than 30 percent. Since most businesses that start from home either go nowhere or do not succeed, this is a big deal. Because here’s the truth, businesses don’t fail for no reason.
If your business fails, most of the time, it will be due to a lack of planning. More than 70 percent of successful businesses had a plan before they started. The other successful businesses usually develop a plan after the fact for the future, or else it’s hard to replicate success. Understand that a business plan that boosts your success potential is not something you will make in one day. It takes time and effort to create a quality business plan that truly sets you up for success.
However, as a home-based business, you can create a smaller plan where the summary and outline fits on one page with attachments (appendices and supporting documents) making up the rest of the business plan.
The important parts of the business plan that you need include:
- Your Business Vision – Answer the question about what you are building. Include specific information, including time, expertise, and the who, when, what, why, and how of the business and customers you’ll serve. “Build a worldwide network of support for women who need to get healthy and lose weight.”
- Your Business Mission – Develop your business mission statement. The mission statement needs to include your target audience, the product or service, and what makes this product or service different. “Motivate overweight and unhealthy women to become healthier by teaching them how to change to a healthy Keto diet.”
- Your Business Objectives – All the goals and objectives you develop need to have a number attached to them. List everything you plan to measure, from reach, to list members, to sales, and so forth. For example, if you’re an author who wants to sell a specific number of books, you’ll state how. “Speak about once a week for a target of at least 40 speaking events this year.” “Generate revenue of $75,000 in 2021.”
- Your Business Strategies – At this point, you’ll want to describe fully in chronological order each milestone and success you’ll experience over time. For example, “I want to become known as the go-to source for Keto Diet information.”
- Your Action Plan – This is one of the most important parts of your business plan as a home-based business. This is the work you’ll do. Make a list of each thing you’ll do over the next year, at least including deliverables, deadlines, and results. “Develop a Keto Cookbook for Two by 3/21.” “Complete building of my studio kitchen by 2/22.”
As you can see, the point of the plan is to help you know what you need to do to build and grow your business. Without the plan, you may be very busy all the time, but your busywork may not be accomplishing anything without a plan.
Blog Post Series
Thirty Blog Posts to help you Build a Business you Love!!!
Day 10: Components of a Business Plan
Day 16: Creating Your Executive Summary
Day 17: Can You Describe Your Business?
Day 22: What Do You Sell? Really?