How to Know When to Write a Business Plan for Services, Information Technology (I.T.) and Outsourcing

The option to start and operate your own business must begin with the positive cost and benefits analysis and its sustainability.

Instructions

Difficulty: Moderate

Things You’ll Need:

• MS Officece, word processing or spreadsheet s/w.

1. 1. Select Scope-
   
   Identify your business units, i.e. while I have a service to provide in mind how am I going to deliver it - will I need seperate people for the process or seperate processes. One should start by identifying such costing parameters essential to determine what profit I may get after
   generating revenue. Managing such cost parameters will enable you to
   see what you can and cannot do with your resources and capital. You may need to start with an iterative plan what you can do today and what you would like to do in six months. Eg., today I can assist a large company with a specific service they do not already do, quality assurance, eg.. later Id like to assist in other areas - at first a seperate individual may not be needed fo rmarketing or accounting.. later, legal and related staff may be required
2. 2. Identify the costs to generate revenue during the first quarter of my fiscal year. If I plan to start a business in 90 - days I will need to determine how many persons I can afford to hire and what salaries they will be required to have; what types of benefits must I offer and what types of overhead costs will be required. Will I lease or buy capital, equipment and related services?
   
   Identify which percentage of these start-p costs will be revenue dependent and loan dependent and how much of these costs will generate revenue to m anage the costs for the upcoming year(s). The idea being that the business plan will demonstrate that you have the costs understood and the wherewithal to generate enough income to cover the investment costs and push you into the approvable status with investors or loan officer(s). You may need obviously to consider who among your staff have the necessary professional designations and experience or credit worthiness that will together make your plan a sure sell to the banks and investors and ultimately those who will buy your service.
3. 3. Share this plan with prospective employees who will either be moving into a new company or investing therein. Motivate these new persons to agree to commit to the first year prospective of having a new job.. Ease the transition as much as possible.
4. 4. Write the contracts for your propsed business with your partners and start-up staff of no less than 5 persons, then identify the investors and determine what the expected costs for the first two years is and calculate the loan required to start the launch