Simple Business Plan
When I started my first business I didn’t have a solid, well thought-out business plan. I threw together a rough one that I used to apply for a bank loan (which I didn’t get, by the way). The Business Adviser simply looked at me as if to say ‘You are joking, right?’ when all I needed was a simple business plan. Loads of people are starting a business for things that they love. For example, you can easily start a business for dog lovers. It all depends on what you want to invest your money into. It’s so easy to want to start a business, but you have to make sure that you have the right business plan.
Most people when setting up a new business, especially one from home, tend to think that a Business Plan isn’t required and as a result end up following a haphazard process going backwards and forwards with no clear goals and little results. But what people don’t realise is that there is a lot that needs to be thought about. You don’t just have to think of your goals but also the legal costs that your business might need. For example, you might want to protect your business with public liability insurance just in case a third party member gets hurt at your business. This isn’t the only thing that you will need to consider, as there are many other things that might cost you. So it’s a good idea to do your research if you want to get a good business plan.
ITve found the best way to make sure a business is going to be successful is to create a business plan. It doesn’t need to be pages long and take you days and days to complete. Below I’ve created a quick Simple Business Plan to give you an indication of what is required.
A good business plan will help you figure out approximately what your business will cost to get off the ground. You don’t want to guess at this. Knowing your costs will help you decide what you’re going to charge.
The Simple Business Plan below also includes information about your competition. Don’t forget about them. In one way or another they exist and you’re going to want to get to know them.
The bottom line most businesses fail because they don’t have a clearly spelled-out business plan. Don’t make that mistake.
For those of you who have been in business for a while don’t think a business plan can’t help you. Your business plan should be taken out on a regular basis, re-read and updated.
Your Simple Business Plan
• What is your business exactly? Explain in one or two sentences. If you can’t describe your business in a couple of sentences, rethink your business and focus your ideas.
• Is your particular business needed? List the reasons that make you think so.
• Where do you see your business in one year? In three years? In five years? Be specific with regards to finances, location, turnover, staff etc.
• How will you fund your business? Savings, credit cards, loans, family?
• What equipment/office supplies/licenses will you need to get your business started? Total Cost? Include everything from stationary to transport. Don’t forget costs of a home security camera alarm system to protect your home business.
• What organizations and trade publications will you need? Total Cost? This will include marketing & advertising.
• Who is your target customer? Describe them and how you did your research to find them.
• What other businesses will you be competing with? Either in your area or nationally.
• What makes your business different from your competitors business? Include price, quality, unique services, etc.
• Where will you set up your office? If at home is it going to cost you money to make a nice workable office?
• How much money do you need to make each month as a minimum? Is this realistic?
Once again, this is just a partial list, but there are enough questions here to give you a good idea of what you’ll be facing with a new business and the costs involved.
A business plan is essential to any business regardless of size and location.
As one great quote says, “Those who fail to plan, plan to fail”