Business ideas ? The big businesses you see today come from a simple business proposal that got the support it needed to thrive. The importance of starting a home-based business cannot therefore be underestimated. You become your own boss, you determine how far you go in achieving your plans and you are independent of thought. You only need a workable home-based business proposal to put your financial destiny into your hands.
Coming up with business ideas.
You can generate business ideas from several sources. In some cases, the ideas are actually provided, and your task is to set up the modalities (means experience) of putting them into practice. Business proposals ideas are normally submitted to the government, venture capitalists and other business support organizations for funding.
This means that the easiest way to generate a business ideas is to look for a product or a service that the government is unable to provide to its citizens for one reason or the other. You can also interview a random group of people on the products and services that they wish they have, and come up with an idea that revolves around these products or services.
Time creates the need for some commodities, and whenever looking for a business idea, it is important to factor in the time aspect of business. Entrepreneurship and proper timing are actually inseparable. An occurrence at a given time can give you a business idea. For instance, during this era of global warming, everyone is looking for alternative sources of energy, and that is why solar-related companies are flourishing.
Creating a business ideas.
If you have got a business idea, you can create a business proposal and present it to venture capitalists or government agencies for funding. Here are a few steps that can help you create your business proposal:
Determine what you can give to the business. As you create your business proposal, you have to determine how much money, energy and time you will devote to the resulting business. This will help you figure out how much help you may need from financial institutions, family and friends.
Conduct a market survey. The available market gives an idea of the net worth of the business. You must therefore conduct a market analysis to identify what portion of the market you will control, considering that there are other businesses that are similar to yours. It is important to think of how to market your products in such a way that your business will still succeed despite the dominance of already existing businesses.
Determine the costs of running the business. Whatever business you wish to start, you will incur a lot of start-up costs, and you must be well prepared financially. If it is a limited company, you may also need to consider registration and taxation, according to the rules of your area.
Determine the required startup capital. A business proposal should clearly document the financial requirements that will make it successful. Even if you expect to raise the capital from your savings and donations, you need to indicate how much you will need to make the business start and make its way to successful resource mobilization.
Determine the expected profits. If everything goes as expected, there should be a substantial profit margin to motivate you or anyone who may lend you start-up capital.
Write the business plan.
Write down whatever you have planned. A business plan is a roadmap that will guide you from the beginning of the business to the maturity stage.
Tips of writing a successful business proposal
Writing a business plan or proposal is not as straight-forward as you may think, especially if you expect to get external financing. Here are a few things to consider
Ensure that your plan has all the sections that are required. A business proposal is not complete without the executive summary, mission statement, product and services, market analysis and marketing and promotion sections. Each of these sections should be elaborate to ensure that everything is clear to the reader.
Be realistic. Entrepreneurs get over ambitions some times. While it is true that you can achieve the goals you have set for yourself whatever the circumstances, it is also true that you can fail to achieve even a single objective, because of one reason or the other. There should therefore be tradeoff between your objectives and the forces of nature.
Be creative. There are businesses all over the world, and if you are not creative, only a few people will know that your business actually exists. Your creativity should this be clearly seen in your business proposal. You should point out what will make the business different from the rest. Why will people buy from you and not the rest?
Be brief and concise. Business language does not love beating around the bush. You need to use the fewest words possible to explain your ideas. If the proposal is too long, it may be too boring to read, and you will miss out on an opportunity you possibly deserve.
Use graphs to explain your ideas. Visuals are good in a business plan. They aid in the understanding of a specific aspect. For example, as you explain the way you expect your business to grow, you can sketch a graph of the income/asset increase in a period of, say five years. This graph makes it to compare the growth from one period to the other.
Let a business expert review the proposal. Before coming up with the final draft, get the input of a business expert. This should be someone who has previously succeeded in business or has experience in proof-reading business proposals. This will assure you that you proposal will be appealing to all those who will read it, and this will make the probability of getting external funding very easy.
In summary, as long as you have a good business proposal, you can successfully begin a home-based business and steer it to success, even if you don’t get external funding. What matters is how viable your idea is.