elanoramenna's Space http://elanoramenna.posterous.com Most recent posts at elanoramenna's Space posterous.com Fri, 16 Nov 2012 06:44:04 -0800 Defining A Business Plan http://elanoramenna.posterous.com/defining-a-business-plan http://elanoramenna.posterous.com/defining-a-business-plan


What exactly is a business plan?

You can define a business plan as a document that provides answers to the type of questions anyone who may provide financing would like to know about your home business. A business plan says. "I've considered this from every angle, and here's what I've come up with". Do you know what your product or service is? It is imperative that every business plan should answer this question first. Explaining in the clear, concise language what in the world you plan to produce or what service you plan to provide is what you need to do.

Any ideas who your customers are? You need to clearly identify your customers in order to properly target your advertising, packaging, pricing, et.

Why do you think you are different? There are primary factors that will make your business different than other businesses you'll be competing with and you need to identify them.

What are Your Expenses? Your start-up expenses include any equipment that you need before you can get up-and-running, while your day-to-day expenses are staff costs and supplies.
Below is a Simplified Example of Business Plan.

What is Catering Plus?

A home-based business producing luxury food for special occasions such as birthdays and weddings is what the business will be. A comprehensive catering service is what we will provide while specializing in high end customized cakes, which have a higher profit margin than other foods.

Our catering business will be aimed at middle-class customers who desire a top-of-the-line catering but must operate on a budget. Mytown as well as the affluent area of Theretown will be the initial market area.

We will only use commercial grade ingredients purchased from wholesalers and provide top quality design and service. By doing this, we will be able to provide food that looks and tastes great and also keep costs as low as possible.

There are only two expenses since I will be using my kitchen and making the food myself and these expenses are the purchase of an industrial grade mixer and then the day-to-day cost of supplies. This supplier offers the best value for start-ups and this was shown in our research.

Bottom line is, you need to include a breakdown of both projected profit and loss per month (in graph form) for the first year in business. By showing one-time and day-to-day expenses versus projected profit, you can indicate how you will pay-off your loan. If your business plan does not show you making enough of a profit each month to live on, then it's possible it may be considered as unfeasible.

How about Studying a Few Real-World Business Plans?

The best way to get a real a feel for the dos and do nots of a business plans is to find real-world plans that have already been approved and study them. A good place to start is the internet. Once you've studied a few, you will get a better feel for how much work will be involved in putting your business plan together.

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