Why You Need a Business Plan
You maybe ask now: “Why do I need a Business Plan when I work from home?” My answer to this is: to be clear in what direction you are going and to stay focused. Most people think a business plan is only for big companies or when you are a startup company who has to raise money for their business. But the fact is, even when you are your own boss and you work from home is it helpful to have a business plan. The plan hasn’t to be a sophisticated one, a simple one works as well.
A Plan versus No Plan
When you write a business plan you get more clarity about your business. You see more clear where you are now and where you want to go. You think more about the needs of your potential customers and about how to reach them. You get also more clarity about the financial situation of your business, your products or/and services and in what price range you position your product or service. From my point of view is it important to know the numbers.
When you don’t have a plan, then it’s more difficult to measure if you are on track with your business and to find the week points. And also you are more aware which part works better and which one you run into problems.
What Contains a Business Plan
Here I have the major point you should include into your business plan:
- Purpose, Values and Vision of your company
- Products and Services
- Action Plan
- Financial Plan
The plan has not to be huge, but it should all contains all major point in each topic. Personally think that the strategy and the finances are the most important part.
With the strategy you decide how you get in contact with your potential customers. How the will know about you and your product and services. Because when nobody knows you, you don’t make any business.
For me the financial plan is the heart of the whole thing. You should always know your numbers. Most business fail not because they have a bad product or service but the don’t know their numbers and run out of money and are out of the game.
So you now have a bit of an overview about Business Plan. In my next blog post I will go a bit deeper to each point in your plan.