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Step 1
Write an executive summary as an opener to your home business plan. An executive summary is essentially an elevator pitch about your business. It's a brief paragraph describing how you use physical capital or personal capital to generate revenue and profits.
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Step 2
The next step in developing a home business plan is to write a section describing who your customers are and why they will come to you instead of your competitors. More specific to home business plans than conventional plans, you will also have to address in this section how your customers will find you because your home will likely not have a store front.
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Step 3
Related to the last step you will want to write the next section of your home business plan on your marketing plan. Describe in this section how you will reach out to new customers, especially since they might not be able to find you in a physical store location. Home businesses are all very different your marketing plan will likely be very unique and it will also evolve over time. It is important however to have a marketing plan from the very beginning as this is important to your success. In this section make certain to address a cost benefit analysis of reaching new customers and decide if it is financially prudent to each out to more customers or to market to increase current customer lifetime value. Note: See the related articles for more information on 'customer lifetime value'.
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Step 4
The next section of your home business plan should discuss the general operations of your home business. Write a few pages discussing the details of your executive summary as described in step one. Instead of an elevator pitch you will want to describe in detail how you will use capital to create profits. Touch on everything from your businesses day-to-day processes to your plans for time management. Describe who your suppliers are (if you have any) and how flexible they are to your business model. Address your HR needs (if any) as well as any outsourcing needs (if any). This section can be as long as you need it to be, so be very descriptive. Writing your home business plans into great detail early on can focus your efforts immediately and create efficiencies.
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Step 5
The last section of your home business plan is arguably the most important as businesses with poor financials typically fail. Describe your realistic financial situation and forecast a realistic version of your financial situation in the future based on reasonable assumptions for ongoing operations of your business. Define your short term financial goals as well your long-term financial goals and describe how these can be achieved. Describe the financial challenges your specific home business faces such as raising starting or ongoing capital (see related articles for more information on raising capital) and note how these challenges can and will be overcome. Make sure you address cash flow issues and seasonality of your business as well as volume of sales and fixed cost barriers. This section of your written home business plan should also include prepared financial statements for your home business in addition to budgeted forecasts of your future financial situation.
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Step 6
The process of writing a home business plan is not a one time task; it must be continually amended as your home business evolves and changes. Periodically reassess the various sections of your business plan and amend them as appropriate. Updating your home business plan should become a routine task whenever major changes occur in your operations. Investors and creditors will always look to your plan and thus it should be as current and accurate as possible at all times.
