Why do I need a business plan?
As with all businesses no matter how big or small it has to know the direction it is headed in from the start.
What initially starts out as a hobby can soon turn into a long term commitment and you may want to turn your hobby into a full-time career of business.
The purpose of this article is to make the reader aware of the type of information needed in a business plan of this type
Where do I start?
Start to Finish
The best place to start is with a short explanation of what your business is about. A mission statement if you like, just a few lines of what it is that you do in your business. It doesn’t need to be long winded just write what you think anybody looking in from the outside would like to know.
Next, as a result of your fledgling business tell your readers where you want your business to take you in 1 to 5 years.
This is your route map to your future so paint as detailed a picture as you can.
Imagine that you will be looking for someone to invest in your new company at the start up stage. You need to include what your goals are for the business.
– A breakdown as detailed you can make it of likely turnover for years 1 to 5
– Profitability projections based on what you estimate your turnover and expenses of the business are likely to be.
With an internet business it is highly likely that you will not need funding as you can start up with virtually no capital at first, particularly in writing and Blogging as there are so many free sites available today.
One expense you may encounter further down the line is if you decide to start your own web site and need a domain name of your own, along with web hosting.
This can be pursued at a later date.
Probably the most important thing for you as a start up is to know where it is you want to go and anticipate the stages you need to go through with your business in order to get there.
At present you probably have the vision of your business and what it will do for you but you need to put the building blocks in place to help you get the thing moving.
In order to get your business moving and create some momentum is to create a set of goals.
Goals need to be specific with date and time set for their achievement.
Remember that if you don’t set a date for their achievement you have nothing to work towards.
Probably the most important thing is to make your targets and goals attainable. Having said that don’t make them so easy that you don’t have to stretch yourself to achieve them
You will feel much better once a goal is achieved that you have had to work hard to get it.
Take time out everyday for reflection.
Taking time out everyday to reflect on your achievements to date is very important. Cross off jobs you have put on the list for action that day and look at the goals you set and check what you did in order to get a step closer to the deadline.
Reflection on your achievements is very important and you need to set time aside to do this exercise each day. It not only clears your head but allows you time to focus on the next steps of your business.
Brainstorming is another important part of the reflection process and will allow you to think of new ways to build your business as it is vital that you keep reinventing your business often to compete with newcomers into your marketplace or niche.
Look after your business and it will look after you.
In the early stages of your business you may not make a great deal of money until you start to build momentum Internet businesses need patience and take time to build slowly. Don’t then expect to be able to live off of what you earn initially. Look after your business by keeping cash earned in your business to help it grow. If you do this it will pay dividends in the future and will then pay you handsomely.
Your business will go through different stages rather like a child. Infancy, Adolescence then adulthood. Recognise the stages you are at and only take out of your business the bare minimum until you are confident that you have sufficient reserves of cash within the business to allow for any other type of spending / expansion.