Your home-based business needs a business strategy that outlines long-term goals and methods of reaching them, and also gives you a deeper and clearer understanding of what makes your business unique and makes obvious the external environmental factors and challenges you might face along the way. This article outlines small-scale research study that Corporita Inc. has completed on home-based business owners’ attitudes about business planning and writing business plans.
Over 250 people were contacted and 47% responded. The evidence shows that business planning in home-based businesses is vital in the path towards success for owners. According to the survey, the most popular reason (78%) owners said for the importance of a business plan is “Seeking Funds”, followed by 48% reporting “Business Growth and Expansion”. 78% said that they seek help from the internet when writing a business plan, and 64% said that it took them between 1 and 5 years to proceed with their home-based business planning.
It took 58% of the responding owners between 6 months and one year to write their business plan, and 83% said theirs was between 10 and 30 pages long. The most difficult part of writing the business plan was Financial Projections information, with 66% of owners reporting this.
Reasons to Write a Business Plan for your Home-based Business
- Capture the Idea: Good businesses have good ideas, and the ability to communicate, execute and strategize them is essential.
- Know the Market: Inviting your friend to sell the same products as you will create unnecessary competition that you might not be able to compete with.
- Check the Requirements: Health, safety and taxation regulations shouldn’t be a surprise if you do your research. Know where you are permitted to have your business, and what services and products you can sell.
- Monetize the Business: Will your idea make money? You won’t get funding if you can’t convince donors that they will get a return on investment.
- Laser-focus the Effort: A well-written business plan can act as a compass when times get rough and will keep you on track to success.
- Build the Team: Many home businesses require outside help in the form of full or part time employees. Will your business need employees?
How to Write a Good Business Plan
To write a good business plan, first, identify what your goal of the plan is, whether to acquire funding or produce financial projections. Complete research on the market to know what you are getting into in terms of competitors and existing products. Use pre-existing business plan outlines to your benefit, you can find these online. Seek advice from consultants if needed. Determine time frames and goals you can accomplish. Proofread you business plan draft and use tables and graphs to demonstrate your ideas. Most importantly, do not rush the process. The time and effort you put in now will pay off by making things easier down the road.
Read the full whitepaper Here