Business Planning (RIIO)

business planningAlthough it may not seem important, it is imperative that you develop a business plan for your home based business. The first step you’ll want to take when writing a business plan is to create your executive summary This executive summary will be the first chapter in your business plan—it will explain what your business does, where your business currently stands, where you want to take your business in three to five years, and why you’ll be successful.business planning

A business plan needs costs as well as sales, and will show profit as well as revenue and gross margin, but the principle is the same: plan the detailed numbers and values of what the business performance will be, and what inputs are required to achieve it.

An appendix to your business plan isn’t a required chapter by any means, but it is a useful place to stick any charts, tables, definitions, legal notes, or other critical information that either felt too long or too out-of-place to include elsewhere in your business plan.

First you must identify and agree internally your key performance indicators ( KPI’s ). Identify every aspect of your service or performance that is important – then you need to be able to measure it and report on it, and where people are involved in performing to certain standards then the standards and the reporting needs to be transparent to them also.

Business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast That said, if you need additional help, there are plenty of tools and resources out there to help you build a solid financial plan.