How To Write An Effective Business Plan

To start a home-based business ,you first need an effective business plan. This article tells how to go about writing one to get you started on the right track.

You can't make a profit from your business with a business plan, but you will have a better idea of what your goals are and how to achieve them if you do have a business plan. You can change your plan at any time to keep up with your changing needs. You enjoy flexibility, but you might also never reach your goals if you don't set one.

A business plan has several parts. First is the executive summary. This is a summary of your entire plan, a general description of your business, and the description of your qualifications to run it. This part is written last, after you have completed all the detail necessary for the other parts of the plan. However, this section is read first and should be a strong sales pitch for you and your business.

Business description: here you give a detailed description of your services. Describe your anticipated clients and explain how you will go about marketing your services to them. You should also mention your type of business organization, as well as anticipated revenues. Use the information you have already developed regarding your market niche and estimate of your expenses and rates to write this section.

Market analysis: The basis for this section is information you have gathered about your competitors. Describe the competing businesses in your area, indicating how you fill a particular need. You should also address industry trends along with your planned response to these trends.

Management and Operational plan: In this section you should describe the nuts-and-bolts operation of your business. Give information about your background and expertise. Describe how you plan to use vendors and subcontractors, if necessary. Discuss your equipment and how you plan to utilize it.

Marketing strategy: Here you will discuss how you plan to attract clients. Describe all of your advertising, promotional and marketing plans. Mention the market niche you are targeting and how you will appeal to clients on this market.

Financial plan: You will need to have an expense worksheet, a balance sheet, and a profit-and-loss statement. Your expense worksheet can be based upon your expense summary and rate structure. It should be summarized monthly. The balance sheet is a detailed listing of all of your assets and your liabilities, which should total each other out and equal zero. Your profit-and-loss statement is a yearly summary of actual income and expenses. It does not include your salary. Indicate in your financial plan how you will acquire money for start-up and how you will pay it back. Be sure to include in your income estimates and projected increases and enlargement of your client base. Your resume should be attached to the business plan, as well as your letterhead and business card showing your logo if you have one. Also include letters of reference.

Keep a copy of your business plan and review it every six months to remind yourself of your original destination on your road to success.

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