How To Write A Business Plan
Financial Plan
Even the smallest of home businesses requires some start-up capital. Creating a financial plan which includes start-up capital, operating costs and a general budget is essential to achieving success. This section should contain the following points.
- How much capital will be initially invested in the business? What is that source of the capital, is it equity or debt financed?
- Provide a detailed breakdown of the initial investment including start-up costs and a monthly operating budget.
- What is the break even point of your business?
- How long will it take for the business to become profitable? (Not the same as the break even point, this includes writing off start-up expenses).
- Produce a predicted income statement and balance sheet for the first two year period.
- What systems will you use to gather and maintain accounting records? Who will be responsible for these records?
Management And Operations Plan
Your management plan should contain answers to the following questions.
- How will you run your business on a day to day basis?
- What is the staff make up of your business? Will you run it alone, with partners or with partners and staff?
- What procedures will you have in place for hiring and managing personnel?
- If you have partners or staff, how will responsibility be delegated?
- What are the job descriptions of everyone in the company, how will responsibility be delegated? (The responsibilities of partners in part depends on what legal entity you register your company as)
- What salaries, leave and benefits are each employee entitled to?
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