eleanorgogo's Space http://eleanorgogo.posterous.com Most recent posts at eleanorgogo's Space posterous.com Fri, 16 Nov 2012 03:40:17 -0800 How Do You Define A Business Plan? http://eleanorgogo.posterous.com/how-do-you-define-a-business-plan http://eleanorgogo.posterous.com/how-do-you-define-a-business-plan


Any ideas what a business plan really is?

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

Any ideas who your customers are? If you clearly identify your customers, then you will be able to properly target your advertising, pricing, packaging, and so on.

In what way are you different? You need to identify the "primary factors" that will make your business different than other businesses you'll be competing with.

What are Your Expenses? Any equipment that you need before you can get up-and-running are considered as your start-up expenses while your day-to-day expenses are the staff costs and supplies.
Here is a Simplified Example of Business Plan.

Catering Plus

A home-based catering company will be the business and it will produce luxury food for special occasions such as birthdays and weddings. 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. In our initial market area, there will be Mytown as well as the affluent area of Theretown.

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

Because I will be using my kitchen and making the food myself, there are only two real expenses: The purchase of an industrial grade mixer and then the day-to-day cost of supplies. Our research has shown that this supplier offers the best value for start-ups.

All of this would boil down to the fact that you should 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. When it comes to your business plan, it should show you making enough of a profit each month to live on because it may be considered unfeasible if it doesn't.

Study a Few Real-World Business Plans

You can try to find real-world plans that have already been approved and study them because this is the best way for you to get a real feel for the dos and don'ts of a business plan. To start off, a good place would be 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.

Take a look at our wide selection of dust collectors industrial today.

Permalink | Leave a comment  »

]]>
http://posterous.com/images/profile/missing-user-75.png http://posterous.com/users/n56vpmGbMpA8O eleanorgogo eleanorgogo eleanorgogo