Starting a home based business without a business plan is suicide. To sum up the Business Model – The business resources of technical staff and equipment complemented by business partners are able to offer a wide range of products and services with a particular billing rate to potential and existing clients, which are obtained through on-going marketing efforts of the company’s staff with an ultimate goal of presenting a proposal and an agreement between the client and the business to provide certain services and products for revenues.
And that’s precisely where a business plan comes in. This highly recognized management tool is basically a written document that describes who you are, what you plan to achieve, how you plan to overcome the risks involved and provide the returns anticipated.
In my experience, business leadership must prioritize business planning as a guiding light to competitive advantage – and back it with the right resources, focus, and technology – so big problems can be solved by skilled individuals and routine tasks can largely be automated.
While your type of company and business determines precisely which taxes apply to you, broadly taxes are due on sales (for VAT registered businesses in the UK, or your VAT equivalent if outside the UK), and on the profits of your business and your earnings.
In many cases, where business planning is a continuation of an ongoing situation, the most frightening spreadsheets can provide a very easy template for future plans, especially with a little help from a colleague in the acciounts department who understands how it all works.