Home Business Plan Template, Write Plan For Success

Home Business Success Depends On Business Plan

A business plan is the key to success in all home party or network marketing businesses. It is as important for a home business consultant to have a written business plan as it is for a major corporation.

Do you have a business plan in place for your home party business? If not, then why not? A business plan is one of the best-business-practices that all successful businesses utilize. A home party or network marketing businesses should be no exception. You will have a much more difficult time achieving your goals without a road map to get you there.

How To Write A Business Plan

When you write your business plan keep in mind the three main goals of a business plan. It serves three very important purposes.
1. IRS compliance
2. Gives you a clear picture of why you are in business
3. Gives you a road map to business success

A well written business plan serves as a road map to guide you in achieving all three of the above purposes, so let’s take a couple of paragraphs and talk briefly about each one of the above points. The Power UP For Professional Results has a IRS home business accountant approved business plan template included in the training program.

The Home Office Tax Deduction

The home office deduction is one of the main reasons why many direct sellers stick with their business.  The home office deduction is also something that many home business owners are afraid to take advantage of.  A good business plan is written in such a way to be your shield that protects you from the IRS. This is usually foremost on peoples’ mind, especially between January and April. I often hear people say that they do not want to take the home office deduction because they do not want to send up a red flag to the IRS.

Well, that is hogwash… The IRS does not operate on a flag system. They have very specific rules and provided you follow them, then all will be well. The IRS looks at several factors when determining if you have a home business and are eligible for the home office deduction.

• One is an INTENT to profit. That doesn’t mean you have to have a profit, it only means you must show and intent to profit and not show expenses that are disproportionate to your income. A written business plan shows an intent to profit, even if you show no profit.
• The next area the IRS is looking for is ACTIVITY. Your mileage log, calendar, sales receipts and other records document activity.
• RECORD KEEPING is the third thing that the IRS is looking for.

These three things combined with your written business plan will insure that you are in compliance with IRS rules when you take the home office deduction.

Business Plan Is Your Goals

Your business plan helps you to clarify your goals. A clear picture of why you are in business is essential to success. Your business plan is a perpetual work in progress. It will change from time to time. The process of creating your business plan and updating it bi-annually will clarify your purpose in your own mind. I have found that frequently in the process of rewriting my plan annually that my focus has shifted either intentionally or inadvertently.

Sometimes I learn that I am putting more time into areas that are not as important as they used to be, and other times I find that I forgot what is important. The business plan will keep you focused clearly on why you are in business,

How To Reach Your Business Goals

Your business plan is a road map that lays out your plan on how you will reach your goals.  You wouldn’t leave Pennsylvania on a trip to Oklahoma without a map, so why would you head out onto your journey to fame and fortune without a road map to your future?  Your business plan gives you a path to follow and directions and turns to take along the way. Every successful business has a written plan.

Example Of Your Business Plan

When you start writing your business plan you should start with your Business Structure such as this: (Modify this example to your situation.)

I am operating as an Independent Representative of the Direct Sales Company. I started this business on April 15, 2003. I will operate as a sole proprietorship for income tax purposes. The name of my company is company xyz. This name is registered with the state of PA.  I have started my business with the intent to profit from sales of retail items as well as override commissions from xyz company for sponsored recruits.

Next comes your Mission Statement, followed by the Active Participants which may include family members whom you will pay out moneys to for work contributed to your business. Then put a section in on your Home office & Car, for example:

The Direct Sales company provides no office space to operate my business. Therefore, I will set up an office in my home. All marketing and sales functions will be performed from my home. I will have a designated area in my home in which to operate. Such essential items include, but are not limited to, a computer, desk, fax machine, internet connection, and a phone line. Products that can be purchased from my company will be used and displayed in my office and home. This shows potential customers that I use my products and support my company.

The following are other categories that you should include. Go into as much detail as possible thinking about who, what, when, where, why, how often, and how many, steps and actions to be taken in these categories:

• Start up Costs/Ongoing Costs
• Marketing & Sales
• Business Activity
• Documentation & Record Keeping
• Business goals

Business Plan Template

Your business plan is your pathway to the future. The more information in it the better chance you have for success. The Power-Up For Professional Results home business training program includes a full business plan template which was designed by a home business accountant who specialized in the home office deduction.

A business plan is a system of best business practice that work. A business plan worked for me and it will work for you too, because a system works the same for everyone. Do what the successful business owners do, put a business plan into place for your home party or network marketing business. You deserve success!