Every home based business needs a plan to be successful. It isn't enough to have a great idea for a home based business and just hang out your shingle. Which is a something that many home based business owners learn too late. So even if you aren't going to be borrowing money for your start up home based business, you still want to take some time to create a thoughtful, realistic business plan.
first step in creating a home based business plan is to clearly define
your goals. It isn't just a matter of saying you want to make a certain
amount of money in, say, five years or to leave your competition in the
dust. These are certainly lofty goals, but they are vague. You want
to define what your home based business really is at the beginning and
where you want it to be. It's a good to break this into segments.
Where do you want your home based business to be in six months? A year?
Eighteen months? Two years? A home based business plan that
outlines your objectives this way gives you a road map to refer to and
will ensure you're on the right track and that you stay there.
you have to know the market potential for your home based business.
After all, there has to be a demand for the product and/or service you
are offering or you have no business. If your home based business is
going to provide business cleaning services, for example, you'll want to
be sure that there are companies and offices in your immediate area
that need your service. You will also want to look at surrounding areas
for opportunities to grow your home based business in the future. The
amount and type of competition for your service needs to be taken into
consideration too. If your area is already saturated with business
cleaning services, you may need to consider a different service
altogether. Without some planning and research, however, you won't know
this in advance, and your home based business won't be as likely to
succeed as it could be.
Next, you want to consider all the costs
your home based business will incur. A lot of times when people work at
home at their own home business, they fail to consider the small
expenses. Printer ink, paper, postage, long distance phone calls and
cell phone bills are easily missed when considering the cost of
operating a home based business. And these seemingly small amounts add
up in a short amount of time for most business owners. So realistically
look at all the costs involved with owning and operating your home
business. This way you'll know how much you have to bring in to meet
expenses and hopefully, to make a profit.
Now you want to think
about how you will market your home based business. Again, you can have
the best product and/or service going, but it won't do you any good if
you don't market it. You need a marketing strategy for your home based
business, and you need to plan for the costs involved in making it a
reality. You may only be thinking about flyers, circulars and posters
to begin with, but they do cost money to produce. And you need to think
about other ways as well. Radio, billboards, direct mail, email, Web
advertising are all great ways to promote and market your product and/or
service. It's wise to do some research into what type of marketing
tools work best for your type of home based business and use a
combination of offline and online advertising. You may want to start
with more inexpensive marketing methods and work up as you go. To do
this, you'll need to, yes, plan for that. Plan for how much you can
spend at the beginning and how much you want to add to your home based
business marketing as it grows--which, with the proper planning, it will