How to Write a Hobby Business Plan
To write a business plan for a hobby business you should follow the general guidelines of the typical business plan, although some sections may not need to be dealt with in great detail. The subsequent steps can serve as a guide.
Examine the Product or Service in Relation to the Market
This section of the business plan looks at your hobby as a part of an identifiable market. It is here that the product or service as it is envisioned is described in detail and the outlook of the industry should form the backdrop of this statement.
Document the Findings of Your Market Research
When you have identified what aspect of your hobby will be turned into a business you need to make sure it is a feasible prospect. To do this you must conduct market research; find your competitors, ask questions of people in your target market and make notes on what you discover. These notes will be used to form your pricing and marketing strategy.
Create Plan for Marketing the Hobby Business
This section simply provides some structure for how you will price the product or service and how you will spread the word to potential customers. Marketing forms an important part of any hobby business plan because, more often than not, the business is run from home and cannot rely on walk-in traffic to propel its revenue.
Specify Details of Day to Day Operations
Here you address where the business will be located, your plans for expansion or improvement, the process for meeting clients or creating your stock-in-trade and if you will need to hire staff to make your plan feasible.
Identify a Management Team
If you will be the sole-proprietor of your hobby business, and you plan to remain a one-person operation, this section could focus on how much you will pay yourself and how often.
Get Down to the Money Matters
It is wise to draft forecast profit and loss statements as well as cash flow statements for your business idea. This helps you to see what the income potential is and can affect your decision to go part-time or full-time into the business. This section is also of interest to financiers if they are going to be sought for help in the venture.