Planning is bringing the future into the present so that you can do something about it now.
Finding the killer idea for your home-based business is exciting. Once you have settled on the best idea for you, you will be feeling enthusiastic, full of energy and rearing to go.
But, if you act in haste, you run the risk of the 3 major mistakes people make when starting out:
- Having no clear and detailed idea of what kind of business they want to create.
- Not checking that the idea resonates with customers.
- Not compiling a detailed checklist of tasks to be completed before launch.
As Benjamin Franklin said, “by failing to prepare, you are preparing to fail”.
This does not mean that you need to spend days writing a lengthy business plan. The best business plans are so focussed and to the point that they can be easily remembered, point-by-point. And the best of the best are those that can be written on a single sheet of paper.
Developing A Business Plan For A Home Business
In our experience, the ideal format for a home-based business plan is on a spreadsheet. It will force you think clearly and express each element of the plan in a single sentence within a spreadsheet cell.
An effective, no-frills home business plan has the following components:
Vision – a mental picture of what you want to achieve.
Mission – how you are going to achieve it, from a customer’s viewpoint.
Objectives – 3 month targets for customers and income.
Competition – their strengths and weaknesses and how you will compete with them.
Marketing Plan – covering the 7 P’s of Marketing.
Revenue Plan – how you plan to grow revenue and profitability.
Cashflow plan – payments and collections, so that you make sure you have enough working capital (cash to cover day to day needs).
Action plan – a checklist of weekly tasks required to implement the plan.
We have created a free home business plan template, which you can receive by completing this form:
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Users of the small business plan template asked us to provide an example to guide them in creating their own.
We thought that the best way to provide this guide was through a video showing a example and describing how to create it. So, we created this video describing a business plan for a garden maintenance business.
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