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There are two kinds of business, a product or hard-goods business and  a soft service-oriented business. If you decide to do a home-based hard-goods business, be sure you can manage it well from a home environment. As we all know, goods take up supply, assembly, and storage space. On the other hand, a soft, service-oriented business are newsletter writer, publicist, author, interior design. Translator,  web-page designer. This type of business takes up little space in comparison to hard-good product.

Business policy – Know your costs. Answer the following;

Now that you have defined your product you are better equipped to forecast your costs. Obviously, this is an important part of your business plan. Without it, how would you know what to charge your customers or how to set budgets and sales goals and determine overall profitability?

Take a moment now to determine your cost per unit. For instance, When I run my business YPC, I determined that my food costs per event run at about 50 percent of gross. To dine four people on five course meal my cost ran to almost $200. I therefore determined the client’s cost would be minimum, $100 per person or $400. it was therefore determined that my profit would be $200 plus tip. Not a bad income for a few hours of work.

14 Define your support staff needs and wages

Adding, labour costs to your business plan is a huge commitment, both financially and emotionally, to the individuals you hire. At one point I found myself more consumed with employee problems than with what I loved most: talking to customers and running the business.

If you still feel you do need help with running your business consider using temporary, contracted employees. There are many benefits to you when you do this.   In Britain most of the factory hiring temporary, contracted employees to save the company expenditure.

 

15 Prepare a first-year budget

Estimate number for the following

·        General operating expenses

·        Equipment and capital expenditures

·        Expected wages for support

·        Expected sales

·        Projected income from all sources

A successful business has a blanched budget, reflective of total costs against projected sales, leaving room for a profit as well. The following represents a list of expenses you should consider when preparing this port of your business plan.  Tick the items on the list that will be of concern to you. Fill the estimated monthly and annual expense for each item. Add to the list any expenses unique to your business that are not already listed.