Ok... so you've finally reached that stage in the development
of your home business to get started. You've done the research,
you have a game plan and you're ready to go except for one small
detail... you need money. Whether it comes from a loan or from
investors it doesn't matter but you need a good dose of seed
money to put all your hard work and planning into action.
However, regardless of who hears your money pitch before they
give you a dime they will want see your business plan.

Business Plan - What Is It?
A good way to think of a business plan is that's it's a
document that provide answers to the type of questions anyone
who may provide financing would like to know about your home
business. You will not get outside funding without one, because
the people giving you the funding will insist on one because it
helps them to know that you've thought through what you're
proposing to do. A business plan says to them... "I've
considered this from every angle, and here's what I've come up
with".

Business Plan - What Does It Include?
What is your product or service? This is the first question
every business plan should answer. You must explain in the
clear, concise language what in the world you plan to produce
or what service you plan to provide. You will also want to
include why you've chosen this particular product or service.

Who are Your Customers? After you've explained your product or
service, the next step is to identify who you plan to sell your
product or service too and why. The demographics (age, sex,
language, country, state or city, income, etc.) You need to
clearly identify your customers in order to properly target
your advertising, packaging, pricing, et.

What Makes You Different? You need to identify the "primary
factors" that will make your business different than other
businesses you'll be competing with. What niche are you filling
that they are not or what do you plan to do to fill a particular
void in the market that you've identified?

What are Your Expenses? Your start-up expenses include any
equipment that you need before you can get up-and-running,
while your day-to-day expenses are staff costs and supplies.

Following is a Simplified Example of Business Plan
This a a simplified and shortened version of a business plan.
In the real world... each one of the following sections would
be 1 - 2 pages in length. That being said... in most instances
it's better to be as brief as possible. Only add information if
your potential backers request it. It's a bad idea to go into
too much detail in your plan. You're not trying to explain
everything down to the nth detail, just the basics of the
business and why they should give you the money you need to
launch it. And always focus on profit.

Catering Plus
Nature of Business: The business will be a home-based catering
company, producing luxury food for special occasions such as
birthdays and weddings. We will provide a comprehensive
catering service, while specializing in high end customized
cakes, which have a higher profit margin than other foods.

Target Market: Our catering business will be aimed at
middle-class customers who desire a top-of-the-line catering
but must operate on a budget. Our initial market area will
consist of Mytown and the affluent area of Theretown.

Key Factors: We will only use commerical grade ingredients
purchased from wholesalers and provide top quality design and
service. This will allow us to provide food that looks tastes
great, while keeping costs as low as possible.

Expenses: Beause 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. I've attached a suppliers' letter listing prices. Our
research has shown that this supplier offers the best value for
start-ups.

To wrap it up, you should include a breakdown of both projected
profit and loss per month (in graph form)for the first year in
business. Show one-time and day-to-day expenses versus
projected profit to indicate how you will pay-off your loan.
Your business plan should show you making enough of a profit
each month to live on – if it doesn't, then it may be
considered unfeasible.

Study a Few Real-World Business Plans
The best way to get a real a feel for the dos and do nots of a
business plans is to find real-world plans that have already
been approved and study them. A good place to start is 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. Remember, until your business exists for real, the
business plan is the only tool you have to sell prospective
backers on how great your business is going to be.


About The Author: Kevin Erickson is a contributing writer for:
http://www.work-at-homedepot.com and
http://www.eyeonsubprime.com and http://www.total-forex.com.
This article may be reproduced only in its entirety.