Mompreneurs® Online - Business Plan Basics

By Patricia Cobe and Ellen Parlapiano
Authors of Mompreneurs® and Mompreneurs® Online
Founders, MompreneursOnline.com

Too many of us who are about to start a home business, a business plan sounds like a daunting document that can take months to draft and must include mountains of financial information. While this statement is true for the small percentage of work-from-homers seeking business loans or outside funding, the majority of us don't need anything quite so complicated or "official." In fact, you can begin with a simple mission statement, which you can expand on later as your business idea takes shape and grows.
A mission statement is relatively easy to create—it can be just a few sentences describing the purpose of your business. It should answer these questions:

To help you fill in the blanks, let's take an imaginary mom who is trying to start an event-planning business. Here's how she may answer the questions and formulate a mission statement:
"Best Events is a full-service party planning company for busy people who don't have the time or imagination to carry off a successful party. We will provide everything from the theme to decorations, food, entertainment and favors. Our target market is working parents and upscale empty-nesters. Party packages range from the very basic (theme cakes) to total glitz (catered dinners with lively entertainment)—events to fit every budget."
Once you have your mission statement written down, commit it to memory so you can quickly explain your business to friends, relatives, mentors, advisors, and future clients and customers without groping for words. Then you're ready to expand your mission statement into more of a business plan. Unless you're seeking outside financing, here's what you should then include:

How much will I charge for my services or products? Jot down your pricing structure and how much you'll be willing to negotiate.
How many hours a week do I want to be working? Set a tentative schedule of business hours.
How much money can I expect to make? Will some of my profits go toward child care?
What is my competition?
How will I market my business to attract my target audience? What kind of promotional materials will I need? How elaborate should my website be? Will I advertise?
What are my long- and short-term goals? Where do I want my business to be in three months? Six months? One year? Three years?
What future directions can my business take?

Remember, neither a mission statement nor a business plan is written in stone. Both are fluid pieces of information that can—and should—change as your vision and business evolve.