Are you a Hobbyist or a Business owner?
The most significant difference between a hobbyist and a business owner is that a business owner’s main purpose is to produce and sustain profitability. By achieving this goal, on a regular basis, they are able to pay themselves, their employees and grow their business. There is no question behind their driving force that propels them forward each day. Money speaks volumes for the return on investment of time, energy and money in their case.
On the other hand, the hobbyists do indeed make sales. They also invest enormous amount of time, energy and money into their business to turn a profit. The main difference that separates a business owner from a hobbyist is the hobbyist may never be able to create the experience of being able to pay themselves for what they rightfully and financially deserve. A hobbyist tends to support the endeavor until they have to declare bankrupts and close up shop.
Where do you see yourself in terms of your home based business? A business owner has a business plan. Do you have business plan? Below is an outline of what the plan entails.
Here's an outline of a basic business plan for a small startup:
Table of contents
I. Your Business
D. Operating procedures
II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis (Home Based Business Development Center)
E. Pro-forma income projections and(profit & loss statements)
F. Three-year summary
G. Detail by month, first year
H. Detail by quarters, second and third years
I. Assumptions upon which projections were based
III. Supporting Documents
A. Tax returns for the last three years
B. Personal financial statement (all banks have these forms)
C. For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
D. Copies of licenses & other legal documents
E. Copy of your resume
F. Copies of letters of intent from suppliers, etc.
Review the Outline-Above
Before you start writing your home based business plan, review our Writing Business Plan Basics
(To use this template, simply modify it to suit you.)
You'll find tips and suggestions to help you fine-tune your final draft.
Before you begin, read the section titled: Refine Your Plan.
Completing this process could take several weeks....
However, if you'll do the work, the payoff is tremendous!..
(Keep good notes regarding your financial assumptions, and where you collected your information.)
If you need assistance with your home based business plan, leave us a comment below.
You can also contact the SCORE office in your area to set up a business counseling appointment with a SCORE volunteer or send your plan for review to a SCORE counselor at www.score.org. Call 1-800-634-0245 to get the contact information for the SCORE office closest to you.
After reading through the above do you really think a hobbyist would have the inclination to begin such a comprehensive task of compiling the above information?
If so I think there would be enough research collected to do one of two things…become a educated online business builder or not!
You decide. If you are “All In” in building a strong business online let us be your “Come to group”
Leave your comments below.
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