Do you need a business plan for your home business? In a word: YES. Would you drive around with no directions hoping that somehow the destination would magically appear? No, you’d waste gas and time. Think of a business plan in the same way – it saves time and money, and gives direction.
The business plan may seem scary at first. Twenty pages, fifty pages, sections, subsections, executive summaries, breakeven point … YIKES. A simple business plan is a one page sheet, if the business is basic. In this post, we’re going to explore and list points needed for a simple business. If you need startup capital from a bank or other lender, one page won’t be enough. More detail is required for the money people.
One Page Business Plan Contents
1) Mission Statement or Statement of Purpose
Use one to three sentences to describe the what, why, and how of your business. Mission statements should be flexible if the market changes or the original concept isn’t doing well. Don’t paint yourself into a corner by rigidly following a mission statement. A mission statement is about basic purpose, not grand detail.
2) Define 3 to 5 S.M.A.R.T. goals. These goals are Specific, Measurable, Achievable, Realistic, and have a Time frame. Do not detail here. Just basic one line goals following SMART.
3) Describe 3 to 5 strategies to achieve the SMART goals in #2. These are basic descriptions, not pages-long fluff. Keep it simple.
4) Write down your expected annual income projection. One number: $10,000, $20,000, $50,000, etc.
5) Briefly describe your revenue sources. These numbers added together should equal the total in #4.
6) Add on future income projections. This is a longer-term bigger picture item because your business will be around in 5 to 10 years. What do you want in the long run?
7) Write down your annual budget. One number: $1000.00, $5000.00, $10,000.00, etc.
8) Briefly detail the annual projected expenses. $5000.00 (computers), $3000.00 (rent), $2000.00 (travel), etc. These numbers summed should equal #7.
These easily fit on one page and make a basic working business plan. Be realistic when setting goals and with revenue projections. Define how you will make $50,000.00 the first year. Writing down arbitrary numbers without a plan almost guarantees failure.
You can also break down the annual numbers to monthly or quarterly figures to track how closely reality fits the business plan. Adjust the plan as needed if revenue numbers are less than expected. Remember that many industries are cyclical or seasonal. February and March may be slow months, but May to September is huge. Consider too that this business is unknown and developing a client base takes time.
Feel better about the business plan now? Good. Time to sit down and start that business you’ve been dreaming of. Best wishes and good fortune!
By Dion D. Shaw
Dion D. Shaw is the founder and owner of Homepreneurs
Homepreneurs. New Day. New Opportunity.
Homepreneurs does not endorse nor have any relationships with any of the services listed. Homepreneurs receives no compensation or consideration for its suggestions. Homepreneurs strongly urges all interested parties to conduct research and accepts no responsibility for any losses incurred.
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