How does the business plan for a side business differ from a business plan for a pure start-up that's going to be your day job, not an ancillary revenue stream? The answer depends less on the circumstance than on how you personally intend to treat the side business. If you want to remain unnamed or have it run by a silent partner so as not to alert your boss or upset your current employees, then the management team section drops out and you lose a little credibility in the executive summary where it's typically helpful to talk about your background and how it will influence the success of your new venture. Your plan should address:
• The relation of the "new co" to your current enterprise
• The overlap in markets, if any
• The similarity in sales channels
• The potential for dual marketing initiatives
• The corporate structure and how it impacts your bottom line at both companies
The business plan for a side business also needs to show a full financial model, including a baseline for sales assumptions and market penetration rate. The tables that a banker or investor will look for include a start-up summary and highlights sheet, sales forecast, break-even point, the profit and loss, cash flow and balance sheet, and probably a month-by-month appendix, at the back, detailing how the pivotal first year post-funding will look. The plan still needs a compelling market overview as well and a marketing strategy section with key start-up phase initiatives and promotions identified. MasterPlans can help you draft this document or, better yet, take the whole project off your hands so you can focus on your first business. Call a development expert today toll-free at 877-453-2011.
