HOME BASED  

PROFESSIONAL  

SERVICES  

Business Plan  

TABLE OF CONTENTS  

Introduction  

3

5

1. Executive Summary  

2. Company Overview  

3. Business Description  

4. Market Analysis  

5. Operating Plan  

6

7

8

10  

11  

12  

15  

6. Marketing and Sales Plan  

7. Financial Plan  

Appendix  

Instructions for Getting Started with  

Estimated Start-Up Costs ...................... 16  

Instructions for Getting Started on Profit &  

Loss Projections .................................... 18  

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Business Plan  

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INTRODUCTION  

Creating an extensive business plan is unnecessary for most businesses to get started. However,  

creating a short business plan offers several benefits that more than outweigh the investment of time:  

• The process of thinking and writing the plan provides clarity for the business.  

• If capital is needed from outside sources, investors want to see a plan that demonstrates a solid  

understanding and vision for the business.  

• The plan will help prioritize tasks that are most important.  

• With growth, the plan offers a common understanding of the vision to new leaders.  

A simple business plan for a start-up service company can be completed rather quickly. Keeping in  

mind who the intended audience is, write simply. The plan needs to be understandable, readable, and  

realistic.  

This template is organized into seven sub-plans or sections to be completed.  

1. Executive Summary  

2. Company Overview  

3. Business Description  

4. Market Analysis  

5. Operating Plan  

6. Marketing and Sales Plan  

7. Financial Plan  

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It is recommended to complete the Executive Summary last, after all of the other sections have been  

completed. As information is filled in, from the Company Overview to the Financial Plan, the writing  

should tell the story of the motivation and vision behind the business. Be sure to include what will  

make the business successful, how success will be achieved, and how success will be measured.  

It is important to keep the business plan updated in order to see progress, celebrate success, and  

adjust where issues arise. This is best done on a quarterly, if not monthly, basis.  

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Business Plan  

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1. EXECUTIVE SUMMARY  

The Executive Summary should be written last after the remainder of the plan has been finished.  

It is an overview (with a suggested length of no more than one page) of the business, including the  

problem the business aims to solve, why this business’ solution is different, the business’ ideal  

customer, and the expected results. The Executive Summary should provide a high-level and  

optimistic description of the company.  

If the business requires outside investment or external investors, include how much is needed, how it  

will be used, and how it will make the business more profitable. Think of this section as the first thing  

a potential investor reads, thus, it must capture their interest quickly.  

Suggested headings to organize this business plan include the following.  

• Opportunity: What problem will the business solve?  

• Mission: What do we do? How do we do it? Whom do we do it for?  

• Solution: How will the service uniquely solve the problem identified?  

• Market focus: What market and ideal customers will the business target?  

• Competitive advantage: How does the business intend to succeed against its competitors?  

• Ownership: Who are the major stakeholders in the company?  

• Expected returns: What are the key milestones for revenue, profits, growth, and customers?  

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2. COMPANY OVERVIEW  

The Company Overview is a brief summary of the intended business, including what it uniquely  

delivers, the mission, how it got started, market positioning, operational structure, and financial goals.  

After reviewing this section, the reader should have a broad understanding of what the business is  

setting out to do and how it is organized.  

This section is not meant to be lengthy. Keep it short and succinct. This is the snapshot of the  

business. The type of business will determine what of the following sections will be required for the  

business plan. Only include what is needed to properly represent the business and remove anything  

else.  

• Company summary: This is the introductory section to the company, also known as the ‘elevator  

pitch’ of what the company stands for and is setting out to do. Include the company’s goals and  

some of the near-term objectives.  

• Mission statement: This is a concise statement on the guiding principles of the company and  

what the company aims to do for customers, employees, owners, and other stakeholders.  

• Company history: This provides the back story, especially the personal story, of why the  

business was founded. Use this section to give the overarching history of the company from its  

start and bring the reader up-to-date on where the company is now in terms of sales, profits, key  

services, and customers.  

• Markets and services: This outlines the target market and related needs that the company will  

address. Include brief descriptions of offered services and targeted markets and customer types.  

This section can be a general overview as more details will be suggested in a later section of this  

plan.  

• Operational structure: This describes the operational details of the business. List any potential  

employees needed on the payroll to make the business run.  

• Financial goals: This describes the start-up capital needed, projected revenue and profits,  

forecast, and budget of the business.  

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3. BUSINESS DESCRIPTION  

This section will first frame the business opportunity and should answer the question: what problem(s)  

is the company trying to solve? Use a case example to describe the customers’ pain point and how it  

is solved today. If the business’ service addresses something the market has yet to identify as a  

problem (for instance, a new mobile app or a new clothing line), then also describe how the business’  

solution reduces stress, saves money, or brings joy to the customer.  

After framing the opportunity, describe the service in detail and how it is the solution the business  

offers, how it solves that problem, and what benefits customers will receive.  

This section also describes in more detail how the services will be rendered and the pricing structure  

(e.g., fixed rate versus an hourly fee). Describe how the company plans to differentiate from its  

competitors. What is the target market and how can the customer capitalize on your unique offering?  

Depending on the type of business, the following sections may or may not be necessary. Only include  

relevant sections and remove everything else.  

• Opportunity: Describe the current market for the business’ offered service. At a high level, what is  

the market and who are its participants; is it business customers or consumers; what is the  

specific geography, etc.? More details on the market will be provided in the next section of the  

plan. Next, describe the current state of available services and how the business will offer better.  

Also discuss any additional services the company plans to offer in the future.  

• Product overview: Describe the service offerings of the business in as much detail as possible. If  

it is effective to include pictures, this would be a good place to place them.  

• Key participants: Identify any strategic partners in the business, such as critical suppliers,  

distributors, referral partners, or any others. In some businesses, products are custom-made and  

any break in their supply will impact the business. There may be key contributors to the services  

offered, so it is important to identify them.  

• Pricing: Provide pricing of the service, gross margin projects, and upgrade paths. Describe why  

the company’s pricing will be attractive to the target market. Have a gauge on the competitor’s  

pricing and explain how the business’ service is unique to justify its pricing structure.  

o Note the difference between working hours and billable hours. All working hours are not  

billable. If the business has employees with differing skill levels (for example, in a law practice,  

there are associates, paralegals, lawyers, partners, etc.), indicate the various billing rates.  

o Communicate rates clearly to clients and customers. If there are potential additional fees which  

will be passed on to clients or customers, define and establish them up front.  

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4. MARKET ANALYSIS  

• Industry type: Begin with the broader descriptions of the market opportunity. For instance, if the  

intended business is a home-based travel agency, the industry type would be service industry. In  

this particular market, the global revenues are projected to exceed $183 billion, but the local  

agency will have a much smaller market. Identify the potential clientele in the company’s local  

geography that might fit into the target demographic group. This section will also identify any  

industry regulations and evaluate trends in market growth and stability.  

• Market segmentation: This section defines the main market segments and those the business is  

targeting now. A market segment is a group of people (or other businesses) within the industry,  

identify smaller segments, such as luxury travel or exotic cruisers. The market can also be  

segmented by criteria such as quality, price, range of products, geography, demographics, and  

others. Consider answering questions such as: Is the segment growing, shrinking, or will it be flat  

for the next few years? What percentage of the market will be reachable? What share of the  

market is anticipated within the next 2-3 years? Graphics are best used in a section like this to  

either show growth (line graph) or percentages of markets or groups (pie chart).  

• Competition: All businesses compete in one way or another. It may be with specific, direct  

competitors or it may be with the way customers have been doing things for a long time. When  

identifying the competition, identify who else is providing services to solve the same problem the  

business seeks to address. What are the business’ advantages over these competitors? How will  

the company’s voice be heard over the noise of competitors? Sometimes a business plan includes  

a matrix of features and compares how each business offers or does not offer those features. This  

section reflects how the company’s solution is different and better suited for the identified target  

market compared to the competition.  

• SWOT analysis: A SWOT analysis may be included by completing the boxes below to assess the  

business’ current environment’s strengths and weaknesses (internal) and opportunities and  

threats (external). This is a good exercise to go through on an annual basis. After completing the  

analysis, provide thoughts on: how the business’ strengths can help maximize opportunities and  

minimize threats; how its weaknesses can slow the company’s ability to capitalize on the  

opportunities; and how the business’ weaknesses could expose it to threats.  

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STRENGTHS  

WEAKNESSES  

• Advantage  

•

•

•

•

•

•

•

Disadvantages  

Gap in capabilities  

Cash Flow  

Suppliers  

Experience  

Areas to improve  

Causes of lose sales  

• Capabilities  

• Assets, people  

• Experience  

• Financial reserves  

• Value proposition  

• Price, value, quality  

OPPORTUNITIES  

THREATS  

•

•

•

•

•

•

Areas to improve  

New segments  

Industry trends  

New products  

New innovations  

Key partnership  

• Economy movement  

• Obstacles faced  

• Competitor actions  

• Political impacts  

• Environmental effects  

• Loss of key staff  

• Market demand  

SWOT  

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10  

5. OPERATING PLAN  

Additionally, it is necessary to outline how the company currently and will continue to develop and  

maintain a loyal customer base. This section includes management responsibilities with dates and  

budgets and making sure results can be tracked. What are the envisioned phases for future growth  

and the capabilities that need to be in place to realize growth?  

The operating plan describes how the business works. Depending on the type of the business,  

important elements of this plan should include how the company will bring services to market and  

how it will support customers. It is the logistics, technology, and basic blocking and tackling of the  

business.  

Depending on the type of business, the following sections may or may not be necessary. Only include  

what is needed and remove everything else. Remember: try to keep the business plan as short as  

possible. Excessive detail in this section could easily make the plan too long.  

• Order fulfillment: Describe the company’s procedures for delivering services to its customers. As  

a service company, determine how to keep track of the customer base, form of communications,  

and how best to manage sales and data.  

• Payment: Describe the standard payment terms and the payment methods accepted. Describe  

the pricing plans (one-time service fees, hourly-based fees, markups, and any other fees) and any  

impact on cash flow.  

• Technology: If technology is critical to the business, whether it is part of the service offering or is  

fundamental to delivering a service, describe the key technologies used that are proprietary. If the  

business data (company or customer) is at risk, describe the data security plan in place, as well as  

any backup or recovery in the case of a disaster or outage.  

• Key customers: Identify any customers that are important to the success of the business due to a  

partnership, volume, or pathway to a new market. Also identify any customers who bring in more  

than 10% of the company’s revenues.  

• Key employees and organization: Describe unique skills or experiences that are required of the  

current team. If necessary, describe any proprietary recruiting or training processes in place. List  

key employees that are necessary for success. Include an organization chart to support this  

section.  

• Facilities: As a home-based business, be educated on legalities and tax filings for such business  

types.  

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Business Plan  

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6. MARKETING AND SALES PLAN  

Promoting the business, whether through generating leads or traffic to a website or store, is one of  

the most important functions of any business. In this section of the plan, provide details of intended  

marketing of the business. Describe the key messages and channels used for generating leads and  

promoting the business. This section should also describe any sales strategy. Depending on the type  

of business, the following sections may or may not be necessary. Only include what is needed and  

remove everything else.  

• Key messages: Describe the key messages that will elevate services in the target customers’  

eyes. If there is sample collateral or graphical images of some messages, include them.  

• Marketing activities: Which of the following promotion options provide the company the best  

chance of product recognition, qualified leads, store traffic, or appointments?  

o Media advertising (newspaper, magazine, television, radio)  

o Direct mail  

o Telephone solicitation  

o Seminars or business conferences  

o Joint advertising with other companies  

o Word of mouth or fixed signage  

o Digital marketing such as social media, email marketing, or SEO  

• Sales strategy: If needed, what will be the sales approach? Will there be full-time commissioned  

sales people, contract sales, or another approach?  

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Business Plan  

12  

7. FINANCIAL PLAN  

Creating a financial plan is where all of the business planning comes together. Up to this point, the  

target market, target customers, and pricing have all been identified. These items, along with  

assumptions, will help estimate the company’s sales forecast. The other side of the business will be  

what expenses are expected. This is important on an ongoing basis to see when the business is  

profitable. It is also important to know what expenses will need to be funded before customer sales,  

or the cash they generate, is received.  

At a minimum, this section should include estimated start-up costs and projected profit and loss,  

along with a summary of the assumptions being made with these projections. Assumptions should  

include initial and ongoing sales, along with the timing of these inflows.  

• Projected start-up costs: The table below shows a sample of ongoing and one-time cost items  

that the business might need in order to open. Many businesses are paid on credit over time and  

do not have cash coming in immediately. It is necessary to make assumptions about how many  

months of recurring items, in addition to one-time expenses, to estimate when cash will begin to  

flow into the company. To begin with, the company will have to fund out of savings or an initial  

investment. There is a blank table in the Appendix to complete potential start-up cost projections.  

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Business Plan  

13  

START-UP COSTS  

Your Home-Based Agency  

January 1, 20XX  

COST ITEMS  

MONTHS  

COST/ MONTH  

ONE-TIME COST  

TOTAL COST  

Advertising/Marketing  

3

$300  

$2,000  

$2,900  

$2,002  

Employee Salaries*  

4

$500  

$2  

Employee Payroll Taxes and Benefits  

4

$100  

$1,500  

$1,600  

$5,500  

Rent/Lease Payments/Utilities  

4

$750  

$2,500  

Postage/Shipping  

1

$25  

$25  

$50  

Communication/Telephone  

4

$70  

$280  

$560  

Computer Equipment  

$0  

$1,500  

$1,500  

$300  

Computer Software  

$0  

$300  

Insurance  

$0  

$60  

$60  

$0  

Interest Expense  

$0  

$0  

Bank Service Charges  

$0  

$0  

$0  

$0  

Supplies  

$0  

$0  

Travel & Entertainment  

$0  

$0  

$0  

Equipment  

$0  

$2,500  

$2,500  

Furniture & Fixtures  

$0  

$0  

$0  

$0  

Leasehold Improvements  

$0  

$0  

Security Deposit(s)  

$0  

$0  

$0  

Business Licenses/Permits/Fees  

$0  

$5,000  

$5,000  

Professional Services - Legal, Accounting  

$0  

$1,500  

$1,500  

$0  

Consultant(s)  

$0  

$0  

Inventory  

$0  

$0  

$0  

Cash-On-Hand (Working Capital)  

$0  

$1,000  

$1,000  

Miscellaneous  

$0  

$2,000  

$2,000  

ESTIMATED START-UP BUDGET  

$26,472  

*Based on part-time employees. This may change once you hit your growth benchmark.  

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Business Plan  

14  

Projected profit and loss model: The model below shows a sample of the projections a small business is forecasting for their first 12  

months of operations. The top portion of the table shows projected sales and gross profit. This is a good place to begin creating the  

company’s sales forecast. The next section itemizes the recurring expenses the business is projecting for the same months. These  

should be consistent with the estimated start-up costs completed in the prior section. At the bottom of this model, it will possible to see  

when the company is becoming profitable and what expense items are the most impactful to its profitability. There is a blank table in the  

Appendix to complete the business’ own start-up cost projections.  

START-UP COSTS  

Your Home-Based Agency  

January 1, 20XX  

REVENUE  

JAN  

FEB  

MAR  

APR  

MAY  

JUN  

JUL  

AUG  

SEP  

OCT  

NOV  

DEC  

YTD  

Estimated Sales  

$5,000  

$13,000  

$16,000  

$7,000  

$14,500  

$16,400  

$22,500  

$23,125  

$24,549  

$22,000  

$25,000  

$27,349  

$216,423  

($6,270)  

Less Sales Returns &  

Discounts  

$0  

($350)  

$0  

($206)  

($234)  

$0  

$0  

($280)  

($1,200) ($1,600)  

$0  

($2,400)  

Service Revenue  

$0  

$0  

$0  

$0  

$0  

$250  

$350  

$100  

$0  

$0  

$1,245  

$1,360  

$3,305  

$1,500  

Other Revenue  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$1,500  

$0  

$0  

$0  

$0  

Net Sales  

$5,000  

$12,650  

$16,000  

$6,794  

$14,266  

$16,650  

$22,850  

$24,445  

$23,349  

$20,400  

$26,245  

$26,309  

$214,958  

$86,569  

Cost of Goods Sold*  

$2,000  

$5,200  

$6,400  

$2,800  

$5,800 $6,560  

$9,000  

$9,250  

$9,820  

$8,800  

$10,000  

$10,940  

Gross Profit  

$3,000  

$7,450  

$9,600  

$3,994  

$8,466  

$10,090  

$13,850  

$15,195  

$13,529  

$11,600  

$16,245  

$15,369  

$128,389  

EXPENSES  

JAN  

FEB  

MAR  

APR  

MAY  

JUN  

JUL  

AUG  

SEP  

OCT  

NOV  

DEC  

YTD  

Salaries & Wages  

$2,500  

$2,500  

$3,500  

$5,000  

$5,000  

$5,000  

$8,000  

$9,000  

$9,000  

$9,000  

$9,000  

$9,000  

$76,500  

$9,550  

Marketing/Advertising  

$400  

$450  

$450  

$450  

$900  

$900  

$900  

$900  

$900  

$900  

$1,200  

$1,200  

Sales Commissions  

$250  

$650  

$800  

$350  

$725  

$820  

$1,125  

$1,156  

$1,227  

$1,100  

$1,250  

$1,367  

$10,821  

$15,000  

Rent  

$1,250  

$1,250  

$1,250  

$1,250  

$1,250 $1,250  

$1,125  

$1,125  

$1,125  

$1,125  

$1,125  

$1,125  

Utilities  

$250  

$150  

$200  

$200  

$200  

$250  

$250  

$250  

$200  

$200  

$250  

$250  

$2,650  

$2,200  

Website Expenses  

$175  

$175  

$175  

$175  

$175  

$175  

$175  

$175  

$175  

$175  

$225  

$225  

Internet/Phone  

$110  

$110  

$110  

$110  

$110  

$110  

$110  

$110  

$110  

$110  

$110  

$110  

$1,320  

$1,980  

Insurance  

$165  

$165  

$165  

$165  

$165  

$165  

$165  

$165  

$165  

$165  

$165  

$165  

Travel  

$100  

$0  

$0  

$250  

$0  

$0  

$0  

$0  

$675  

$800  

$0  

$0  

$1,825  

$2,400  

Legal/Accounting  

$1,200  

$0  

$0  

$450  

$0  

$500  

$0  

$0  

$0  

$0  

$0  

$250  

Office Supplies  

$125  

$125  

$125  

$125  

$125  

$125  

$125  

$125  

$125  

$125  

$125  

$125  

$1,500  

$0  

Interest Expense  

Total Expenses  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$0  

$6,525  

$5,575  

$6,775  

$8,525  

$8,650 $9,295  

$12,100 $13,131  

$13,827 $13,825  

$13,575  

$13,942  

$125,746  

Income Before Taxes  

($3,525)  

$1,875  

$2,825  

($4,531)  

($184)  

$795  

$1,750  

$2,064  

($298)  

($2,225)  

$2,670  

$1,427  

$2,643  

Income Tax Expense  

($529)  

$281  

$424  

($680)  

($28)  

$119  

$263  

$310  

($45)  

($334)  

$401  

$214  

$396  

NET INCOME  

($2,996)  

$1,594  

$2,401  

($3,851)  

($156)  

$676  

$1,488  

$1,754  

($253)  

($1,891)  

$2,270  

$1,213  

$2,246  

*In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.  

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APPENDIX  

START-UP COSTS  

Your Home-Based Agency  

January 1, 20XX  

COST ITEMS  

MONTHS  

COST/ MONTH  

ONE-TIME COST  

TOTAL COST  

Advertising/Marketing  

Employee Salaries  

Employee Payroll Taxes and Benefits  

Rent/Lease Payments/Utilities  

Postage/Shipping  

Communication/Telephone  

Computer Equipment  

Computer Software  

Insurance  

Interest Expense  

Bank Service Charges  

Supplies  

Travel & Entertainment  

Equipment  

Furniture & Fixtures  

Leasehold Improvements  

Security Deposit(s)  

Business Licenses/Permits/Fees  

Professional Services - Legal, Accounting  

Consultant(s)  

Inventory  

Cash-On-Hand (Working Capital)  

Miscellaneous  

ESTIMATED START-UP BUDGET  

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Instructions for Getting Started with Estimated Start-Up  

Costs  

Determining a business' startup costs is critical to ensure enough cash is available to begin business  

operations within the budgeted time frame as well as within the cost budget. Startup costs typically  

fall within two categories: monthly costs and one-time costs. Monthly costs cover costs that occur  

each month during the startup period, and one-time costs are costs that will be incurred once during  

the startup period.  

Steps for preparation:  

• Step 1: Enter the company name and the date this estimate is being prepared.  

• Step 2: Enter the number of months and the monthly cost for each cost item that is recurring. For  

one-time costs only, skip the monthly costs. If there are cost items that have both recurring and  

one-time amounts, enter those as well.  

• Step 3: Once all of the costs are entered, review the individual items and total amount to see  

where the budget can be fine-tuned or move something out into the future when more revenue is  

coming in.  

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START-UP COSTS  

Your Home-Based Agency  

January 1, 20XX  

REVENUE  

JAN  

FEB  

MAR  

APR  

MAY  

JUN  

JUL  

AUG  

SEP  

OCT  

NOV  

DEC  

YTD  

Estimated Product Sales  

Less Sales Returns & Discounts  

Service Revenue  

Other Revenue  

NET SALES  

COST OF GOODS SOLD  

GROSS PROFIT  

EXPENSES  

JAN  

FEB  

MAR  

APR  

MAY  

JUN  

JUL  

AUG  

SEP  

OCT  

NOV  

DEC  

YTD  

Salaries & Wages  

Marketing/Advertising  

Sales Commissions  

Rent  

Utilities  

Website Expenses  

Internet/Phone  

Insurance  

Travel  

Legal/Accounting  

Office Supplies  

Interest Expense  

Other 1  

TOTAL EXPENSES  

INCOME BEFORE TAXES  

INCOME TAX EXPENSE  

NET INCOME  

* In the service industry, Cost of Goods Sold is the monetized value of the time spent on the client.  

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Business Plan  

18  

Instructions for Getting Started on Profit & Loss  

Projections  

Completing projections for Profit and Loss of a new company is a good exercise to understand and  

communicate when the company will begin to break even and see how sales and profits will grow. The  

top portion of the model to the left, Revenue, is a good way to forecast sales, month by month for the  

first year. The lower portion then applies estimated expenses for the same period of time to derive the  

business' profitability.  

Steps for preparation:  

• Step 1: Enter the company name and the date this projection is being prepared.  

• Step 2: For each month, beginning in January or whenever the start is estimated, enter the  

expected sales to be. This could be for a single service or multiple services. Add lines to this model  

for additional offerings. From this, subtract any product returns or discounts that are to be tracked  

(these should be shown as negative numbers, for example, -10). Below Net Sales, enter the Cost of  

Goods Sold. This refers to the monetized value of the time spent on a particular client.  

• Step 3: For each month, enter the estimated salaries, marketing, utilities, and other items that are  

projected.  

• Step 4: Once all of the costs have been entered, review the individual items and total amount to see  

where projections can be fine-tuned or move something out into the future when more revenue is  

coming in. The objective is to get to profitability and positive cash flow as quickly as possible.  