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If you've researched your market, thought over the pros and cons of a home-based business, and decided to go ahead, it's time to put together a business plan.

Developing a business plan forces you to take an objective and critical look at your business idea. Even more, the finished product is a tool that will help move your business toward success.

A business plan should be neat, written clearly, and should include several things. The cover page should list the business name, address, mailing address, telephone number and the name(s) of the owner(s). Identify your primary goals and objectives. Next, give an accurate and concise description of the business:

- What is the principal activity? Be specific. Give product or service descriptions.
- How will the business be started?
- Why will it succeed? Promote your idea. Use your market research.
- What skills and experience do you bring to the business?

Marketing is the core of your business. Carefully think about the following questions, then include your marketing strategy in the business plan:

- Can you market your business from home?
- Who and what is your market?
- What pricing/sales terms are you planning?
- How will you be competitive?

Money fuels all businesses. With a little planning, you'll find that you can avoid most financial difficulties. When drawing up a financial plan, don't worry about using estimates. The process of thinking through these questions helps develop your business skills and leads to solid financial planning.

Start-up costs: To estimate your start-up costs, include all initial expenses such as fees, licenses, permits, telephone deposit, tools, office equipment and promotional expenses. Business experts say you should not expect a profit for the first eight to 10 months, so be sure to give yourself enough cushion.

Projecting operating expenses: Include salaries, utilities, office supplies, loan payments, taxes, legal services and insurance premiums. Don't forget to include your normal living expenses.

Projecting income: It is essential that you know how to estimate your sales on a daily and monthly basis. From the sales estimates, you can develop projected income statements, break-even points and cash-flow statements. Use your marketing research to estimate initial sales volume.

Cash flow: Working capital, not profits, pays your bills. Even though your assets may look great on the balance sheet, if your cash is tied up in receivables or equipment, your business is technically insolvent ' in other words, you're broke.

Make a list of all anticipated expenses and projected income for each week and month. If you see a cash-flow crisis developing, cut back on everything but the necessities.