Business Plan for Home based Business
Posted by admin on November 4, 2009 - (0)
After completing your initial research and planning, the next step is to execute some planning. In this regard, the first thing is to draft a business plan, which organizes all the different bits and pieces of information and ideas which you have gathered till now.
So, what exactly is a business plan? It is a blue print for startups and profitable organizations. Comprising details on the operational aspects of the business it also serves as a window to potential investors and lenders. In simple terms, it is a synopsis that describes the characteristics of your business and how it will be financed and managed.
Creating a business plan, helps you to critically assess the pros and cons of your business unemotionally before starting it. A business plan also serves as a means for communicating your ideas to others and provides the basis for financing your business.
There are several aspects which a business plans should address, some of them are:
1. Statement of Purpose
The statement of purpose in short underlines the reasons for why your business would be a success. It also highlights your business’s niche’ and how would it be turn out to be a successful venture.
2. Legal Structure and Function
After outlining the statement of purpose, the next thing the plan should address is the legal structure and the function of your business. In other words, what is your business’s principal activity, which are the segment it would operate and other such details. You should also mention as to how you intend to start your business- as a Startup, Franchisee or Expansion of an ongoing business.
3. Organization and Management
The next step head would be to write down the roles played by different people in the organization. In other words, get the management in place to run the business. This would again be subject to the number of people in the firm. It helps avoiding duplication of roles and provides each individual with a clear idea about his role.
4. Banking plan
After having determined the above heads, the penultimate head to touch would be the financial aspect. This would primarily involve you to choose the bank and its location. A bank which is at a short distance from the office makes life that much more easy with regard to fiscal transactions. This also lends credibility to your business. Once you decide and write down the back, zero in on the type of account which you would open in that bank.
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How to carry out Market Research for Small Business?
Posted by admin on November 4, 2009 - (0)
It may sound surprising but many entrepreneurs today start a home business without ever really understanding the market they plan on serving. Well, a manager cannot run a small business efficiently without understanding the needs and requirements of the market and consumers. In fact, it becomes kind of critical to know the potential size of your market and, in turn, what sort of response your service or product will attract.
The best of efforts trying to sell something without knowing if a buyer has any money in his pocket are sure to lead to failure. A good understanding of these numbers regarding your business gives you a clear advantage.
These numbers could provide you details about demographic distribution of a region, different age group of a locality or region, income levels of an area to be considered and other such aspects. Based on the number derived from such parameters, you can decide how to position your position in different segments.
There are primarily two ways to conduct a research, qualitative and quantitative. Both of these can be incorporated in any tools, a few of which have been mentioned below.
There exist numerous tools in the market which carry out market research. Based on your requirement you could choose the optimum method that caters to your requirement. Some of the tools of market research are:
- Feedback forms – This is the more conventional method and applies well for a small scale radius. You can compile a set of questions and circulate it in to prospective costumers in your locality or neighborhood. Based on the response proceed with setting up your business.
- Online Surveys – With the power of internet growing by the hour, online surveys have emerged as the most feasible and popular methods to get a feel of public opinion. The other advantage of this method apart from its cost effective nature is the speed with which data collected can be collected and collated o provide the necessary results. It has been concluded that online surveys are 10 % less expensive than surveys conducted through phones, according to Lee Smith of Insight Express.
- Focus group discussions – You could conduct focus group discussions if you know the base your business would look to target. The responses generated from the questions would provide you a clear idea of the do’s and don’t before setting up your business.
- E-Mails – Based on the operating radius of your business, you could also reach out to a group or a set of people using e-mails. This approach would ensure a speedy response and would be cost effective but collating the data might take some time.
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Building the base of your Home Business
Posted by admin on November 4, 2009 - (0)
Once you are through with the initial ground work and have got an idea for a winner of a home-based business, what next? Now follows the ‘building block’ stage which you could call as laying the basics or infrastructure for your business.
Before going on the overdrive, a few details need to be put in place to ensure a smooth launch and execution of your business. Some of them are:
1. Estimating the market for your product or services
If you haven’t done any homework on this aspect, halt your take-off, for this is first and the most crucial evaluation for your business startup. Many fall into this trap as says Jane Applegate, nationally known small-business author and advice columnist, “This is a critical first step, and it is amazing how many people set up a business without having a market for it”. In this regard a simple and feasible study could be a verbal evaluation or market study which would clear a lot of details regarding the different products and services operating in the market.
2. An office for your business
An office for your business would be another factor to consider although it is not mandatory. In this regard it goes without saying that many people run their businesses from their home. This may be arrived upon by calculating the fund allocation and budget of your business. If your pocket allows then a separate premises would be a preferred choice to make for it would provide you the space and place to store your stock. Also, a separate workplace would ensure that your house remains undisturbed.
3. Infrastructure
Having decided with the premises, the next thing would include, getting the right stuff in your workplace such as chairs, tables, computers etc. Again this would be specific to your needs and requirements, say for example of your work involves spending long hours in front of your PC or laptop then accessories pertaining to it such as proper chair, printers, cable internet etc become a pre-requisite. Also care needs to be given to the spending costs on such infrastructure so that it does not cut into your budget.
4. A separate bank account.
It is always better to open a separate back account because you never want to mix your business money with your personal money. Also it helps you keep a track of your finances and helps in building a good rapport with the back for future credits. Jane Applegate says, ‘Having a bank account in your business’s name is the way to go’.
5. An insurance cover
An insurance cover is near essential for your business. With the dangers of financial and social risk high in today’s changing world, such a measure comes in very handy and acts as a safety net for you and your business.
6. A Web site and e-mail account in your business’s name.
A distinct e-mail account with an attractive website would be perfect for marketing purposes. In today’s technology oriented world where much of the business happens on the web, its always better to have this in your arsenal.
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