So you have found that the Internet is a vast resource of templates for various business forms, including business plan templates. If you think you can use some of them and you are looking at downloading, take extra caution. You need to be sure that they will serve your particular purpose, especially if you are eying to use a business plan template. Not all businesses are the same, so you need to make sure that while you use the template, you should also customize templates enough so that they speak on your behalf, and communicates your identity and value proposition accurately.

To help you work on a business plan, it pays to know the major parts that business plans typically contain. A business plan is touted as the most crucial document that a business owner or entrepreneur will ever develop before he launches his business. The business plan sets the direction of the company, especially during its start-up years. It is also the document that investors look at when they are deciding whether or not to put their money in the business venture. As such, business plan templates should contain the structure of the company, its revenue and growth goals, as well as its future plans.

So what are the parts of an effective business plan?

The first section should contain the executive summary. Here, you sum up the important points of the entire business plan in such a way that it piques the interest of investors who don’t have the luxury of time to read through the entire document. The gist of the business plan should be laid out in a three- to five-minute read, underscoring the key issues and should not be more three pages. While it is presented first, the executive summary is prepared last, when the rest of the plan has been drafted.

The next section is a description of the business. The purpose of this section is to provide detailed information about the company, as well as the products or services that it plans to offer. This is also the place for putting your company’s mission statement and milestones.

The third section contains the market analysis, which aims to present the company or business venture in the light of the market situation. Here, you talk about how you position your company in the market landscape so that your readers will have a better understanding of the prospects of your business. Make sure to include a discussion of your industry, your target markets and your competition.

Next, your readers, especially the investors, need to know that the people who will lead the company can be trusted with their money. As such, the business plan has to have a section on the management team. In addition, investors also need to have an understanding of the process of your business. As such, your plan has to have a section on your operations, including your go-to-market strategies.

Investors also have to apprised of the risks that they will be taking if they do decide to put their money on your business venture. As such, have sections on critical risks and financial projections, where you describe in detail the risks that are avoidable and expected, as well as how these risks relate to your ROI projections.

Finally, the best business templates are those that have room for appendices. These appendices provide supporting documents to the claims that you made in the entire business plan. They come in handy once the investors have initially decided favorably, and would like to scrutinize the plan better before they sign on the dotted line.

Writing a business plan isn’t optional just because you consider this simply a home business. You are a small business owner. A written business plan is required to secure finances or investors in your new home business. Starting a home business with your own funds and ideas doesn’t mean you don’t need a business plan.

A written business plan is critical to every home business. The thought process and research involved in writing your business plan will reveal the blue print for your home business.

There are numerous paid and free business plan products that you can use to develop your own home business plan. Unless you are seeking investors in your small business, you can learn how to write a business plan that keeps your business working toward your goals. To have a well written small business plan, you will find your goals easier to reach and keep track of your progress both with building your customer base and sales.

Starting a home business without a writing a well thought out business plan is like building a house without a blue print to guide you every step of the way.

Your home business foundation built on these eight areas will give your business a strong identity and focused sense of direction to help you plan and manage your business effectively.

#1) Business Summary.

Write out a description of your business. What kind of company do you want to build? A well written description or summary of your business often propels you through each step of how to write a business plan. Writing the summary first means you will always have the basic premise of your home business idea at the top of everything you put in your business plan.

#2) Name Your Business.

You may think that your direct sales business already has a company name but that is not the name of YOUR business. Creating a distinct name for your business will help make your plan. Does your business name reflect what you offer? Is it easy to remember? Does it have strong branding potential? Should you reconsider your current business name if it not working with your product? Make sure the name of your business fits not only your product or services but your mission statement.

#3) Itemize Your Products or Services.

Write out descriptions of your products; how do they look, smell, taste, feel or how your services will help others reach their own goals in life. How will your offerings improve the lives of others? Sort through why others aren’t already doing it and if they are offering exactly what you are going to offer then what prevents the competition from doing it better or more cheaply than you are.

#4) Mission Statement.

Your mission statement is a concise clear summary of the goals of your business. In your mission statement, you will define exactly what your business does, the products or services offered and what makes your business unique above the competition. Writing the bottom line of your business goals into your mission statement will guide the rest of your business plan.

#5) Business Assessment.

A major portion of your home business plan is a detailed assessment of four areas: your strengths, your weaknesses or limitations, business and marketing opportunities and threats or barriers to your potential success. At this stage of your business plan, you will be looking at your industry. Your work experience and talents that will add to your business would fall under your list of strengths. Your lack of knowledge or funds could be listed as your weaknesses. Take into account how broad your industry is when you are looking at your strengths and weaknesses. If you have little money for start up then you will need to be creative in your marketing and running your business. Will your weaknesses mean your opportunities for success are limited? Will your talent surpass your lack of funds?

Opportunities for business growth may be dependent on your networking contacts or website design. Every business owner should remain wary of all threats to business success. Planning for problems before they arise will make running a business easier and more successful in the long run. As you can see this aspect of business planning is critical to all of your vision, your mission statement, your goal setting and running your home business.

#6) Goal Setting.

Write your vision for your business. Be specific. You can revise this as your goals and mission changes. How do you envision your business a year from now then five years from now? Write out your goals and objectives. Break down each product or service into their own set of goals. Plan for expansion as your business evolves.

Goals are useless unless you can measure your progress towards them and plan to regularly assess which goals have been met or still need to be fulfilled. Make your goals specific and time sensitive. With each business goal, itemize what needs to be in place to reach each of your goals. Outline what steps you will take to reach the goals for your home business. Mark your calendar when its time to re-evaluate your goals and re-align your vision for your business to match the direction your business is going.

Celebrate when you reach your goals and regroup when you realize you missed the mark. It’s important to decide what you consider to be a major loss and what you will accept as unsuccessful. Knowing what you will accept and absorb as a business loss before it happens will help prepare you for when it actually happens.

#7) Target Market.

Research your desired target market. Identify who you expect to buy your products or services. Write a profile of your average customer. You need to know your target before you are able to aim. Study your potential customer’s behavior. Where do they shop? What do they read? Do they move in specific social circles? Who wants or needs your business? Who will benefit from your product? What type of people will find your business a necessity?

You cannot expect to fill a need or desire of a customer if you do not know what makes your offer unique and necessary. Look at those that offer similar products with success. Write out how you can rise above and differentiate yourself from the competition. At this stage of your business plan, describe how you can stand out from the crowd. Write down how and why your company is better than the competition. Study the competitions latest marketing strategies then outline here how you plan to counteract their business moves to give you the edge you need to stay unique and effective.

While studying your customers and competition, take the extra time to identify complementary products or services that may fit your current business plan that may give the edge you need to compete in the future.

#8) Sales and Marketing Strategies.

How will anyone know your business exists? What steps will you take to make your business known? How will your customers find you? What can you do to ensure that you attract the customers you seek? How will you track your efforts? How much money do you have to put these strategies in place?

List your strategies – press release, printed catalogs, business cards, open house, craft fairs, business, conventions, virtual expos, sales letters, etc.

Determine whether you will market exclusively online, locally to your warm market or a combination of both. If online marketing is part of your business plan then include an internet marketing plan to include your domain name and host, whether you will hire a professional website designer or do it yourself, your business logo and e-commerce set up.

#9) Business Start Up.

Determine what equipment and services you will need to run your business to include setting up your home office, equipment, supplies, product inventory, customer record keeping, and book keeping. Create a checklist of professionals you need to secure for legal and financial advice, advertising expertise, office assistance or tax expertise.

Starting a home business can be exciting and scary because it is Your dream that you are working towards with each work day. To write a business plan, means a great deal of commitment to the process. The process of writing a business plan will bring you closer to understanding yourself, your business goals, your company identity and reaching your potential customers.

Although these areas are critical to writing a business plan, there is much more that will be added to your plan over time. Each time you reach a goal or discover a barrier to making the sale ~ you will return to your business plan and revise your goals, strategies and techniques.

Business success is in the plan and implementation but also in the ability to adjust and redefine your business goals to meet your customers need or desire while letting you design your home business your way!

There are a very few reasons why you would want to write a business plan.

1. To evaluate initial startup costs.

2. To establish the fundamental viability of a project

3. To define your products, services and customers and assess competitors.

4. To map out the business model, the goals and the strategy used to achieve them.

5. To communicate to others (banks, investors, partners, etc.) the business idea.

A simple business plan can be written very quickly by just completing the following easy 10 step formula.

1. I am…

Introduce yourself. Tell the reader of your business plan who you are, your background, education, professional experience, your successes to date.

2. My product or service is…

Tell them what product or service is, what it does for the customer, any unique features or facets, how it is produced, etc.

3. My customers will be…

Describe your target customers and why you have chosen to market to these customers. Use any back-up evidence from your experience, reports, white papers, market research, etc.

4. My customers will buy from my business because…

Describe any unique selling points or advantages you have. Are you providing better value, guarantees, superior quality, reduced risk, better location, etc?

5. My customers will pay…

Explain how much your customers will pay for each of the products or services you will provide. Describe any up-selling or cross-selling opportunities and how many times a customer will buy from you in a typical year.

6. I can make…

Explain how many products you can produce or services you can provide in a typical year. Back this up with whatever evidence you have to support this.

7. To make each unit of product costs…

Explain how much each unit of product costs to produce. If your business is a service business describe how much it costs to provide the service.

8. The start-up investment I require is...

Detail how much start-up investment the business will require and what you require it for.

9.I have a viable business because

Explain why your business is viable and what evidence you have to support this claim. This will require some market research to demonstrate their is a viable market for your product or service.

10. In summary…

On a single page, list the main points of you plan in bullet point form. This is single most important part of your business plan. It will be read first by all readers of your business plan and will determine if they will read further and ultimately support you business idea or not. Write this summary last but put it at the front of you plan.

Now that you drafted a simple business plan you are in a great position to assess the initial viability of a business at a very high level. You may want to consider fleshing out this simple business plan into a more standard, detailed business plan format before presenting it to potential investors, partners or banks. They will want to see some detailed financials also – Income Statement (Profit and Loss), Cashflow Statement and a Balance Sheet.