Basics of the Business Plan

Last night we began a series on building your business plan and we briefly covered the basic components of a generic business plan. Tonight we are going to begin to go into a little more detail on the basics of the business plan. Our concept here is to help you start to focus your energy and write down that focused plan so that you ultimately have a road map to grow and develop your home based business.

At some point in time you may have become tired of working for someone else or you are looking to supplement your current income. You have now started looking around for something else to do, some other way to earn income and think you may have found a really good thing to do. The possible problem is that someone else is really pressuring you to get into this particular business opportunity. We have talked about this specific subject before, and before you really jump into any business opportunity, no matter how good somebody else thinks it is, you need to do some research.

At this point, you really are beginning your business plan. This opportunity sounds good, the concept of what they are offering sounds good, and it may be something that you would enjoy doing. OK, that is a great start, but will it really earn you additional income? Before you even get to answer that question, you need to start writing down what you want, and what you know.

By writing down what you want out of the business opportunity, you are beginning to develop your business objectives. Be sure to note what it was about the business opportunity that excited you in the first place. It will be pretty amazing to see what you really want out of the business opportunity by putting it down on paper. Many of us have these grand ideas of what we want our business to be, but when you put it on paper, then, the whole concept becomes more real. By writing down your business objectives, you now are starting to honestly analyse your real reasons for starting a home based business. Once you write down your objectives, you can then review them and revise them to help focus what you truly want to do.

Now that you have your objectives written down, and you are relatively comfortable with what they are ( these objectives may change with time, but remember, this is a first draft), now you can start comparing your objectives with the business opportunity that you are being presented with. Will this opportunity fit in with what your objectives are? Will this opportunity get you to where you want to be? If so, then the next step is to look at the market in which the business opportunity is in.

Does this market have a lot of people already in it and where are they located? Depending on the opportunity, you probably want to have people that are in the same business somewhat near you for a support system, but you do not want them next door to you offering the same items. How much does it cost to get involved in this opportunity? How current is the product or service that is being offered? Is this product something completely new and untested, or is it something that has been around the block a few times and is just repackaged (a great example is weight loss products)? If this is a new product or service, has the parent company done any market testing, and can you get a look at the results? Who is currently the most successful person or group in this particular market? Can you discover what they have done to become successful, is it repeatable? Is it something that you are comfortable doing?

If you are really unsure about the product or services, before you get involved in the opportunity, ask your friends that if you did get into the particular business, would they consider purchasing the product or service from you? You can fairly easily test the waters by asking friends, family and even some strangers their opinion. Go on the Internet and look up the item. Find out what is being said about the product. You actually want to find both good and bad comments about the product. By finding both opinions, you can at least look at the good and bad sides of the issue. It is ultimately up to you to decided to get involved or not, but the more research you do up front, the safer your bet will be. Document all the research and results you discover. Also note where you got the information. This can be especially useful not just for your business plan, but if you want to get others involved in the business, you can provide them with your research and the reasons for why you thought it was a good opportunity.

At this point, be sure to take a good look at the products or services that are being offered. Is this something that fits in with your lifestyle? Is it something that you and/or your family can use? If you don't personally use the item, why would you consider offering it to others? There may be very good reasons, but you need to make note of them since it is part of your business plan. What differentiates these products from what can be found in other stores, or locations? What will these particular products do that the competition cannot or will not do? Does the product or service require any special licenses or permits that you need to obtain? Do you need to get special training or certifications to sell or offer the products? By noting all of these questions and writing them down, you now are building a really solid road map toward success.

Now when people ask you why you got involved, you have already gone through the thought process, written it down, and are comfortable with your decision. If you keep everything in your head, it may sound good when you talk to yourself, but you may not be able to clearly and concisely identify your reasons for getting into this particular business opportunity to others. Writing down all your thoughts, ideas and research helps you to crystallize your goals and then once you really see what you want on paper, you can more effectively communicate that to others.

Tomorrow we are going to continue this discussion, talking briefly about how you plan on marketing your business opportunity, deciding where to start your business, how you plan to get started financially and what to expect back financially.

If you are interested in looking for an additional income stream, and want to start your own home based business, please feel free to review what we have to offer on http://www.hawgwash.net/. We may have something that interests you, or we may be able to spark an idea of your own. Either way, if you have questions, please feel free to contact us through e-mail at hawgwash1@yahoo.com. We would love to hear from you and would like the opportunity to help you supplement your income.

Until tomorrow...