Starting a home based business is one of the popular business choices throughout the world. The main reasons behind the popularity of the home based business include:
- Low investment
- High comfort
- And a widespread reach of the customers through internet.
However, home based business is not as easy as it sounds and like any other form of business it requires a strong and well worked out business plan.
Most of the home based entrepreneurs think that a business plan is required only for generating funds and in the initial it’s not that important. Well, that’s the biggest mistake of all. You need a business plan even for starting a home based micro business.
Following are some of the major reasons why you should draw a business plan before starting any business venture :
1- It’s the road map for your venture; Having everything clearly written on paper makes it easy to devise a step by step plan and execute it accordingly.
2- You can benchmark effectively only when you have a business plan; And when you do not have one, you actually don’t know what you wanted to achieve and whether you are going in the right direction or not.
3- It brings seriousness to a business; A lot of people think that in home based business they can be much more relaxed, as they are in the comfort of their homes. A business plan helps to keep them on their toes and constantly reminds them of the various procedures and goals of the business.
4- Helps to create professionalism; A business plan with well drawn policies and procedures helps to create an office-like atmosphere within the boundaries of your homes, which goes a long way in strengthening the point that is mentioned above.
5- SWOT analysis of the business; Even though the locations of home based or office based business might vary their goal is the same, ie to make money. Irrespective of what type of business it is, a good plan will make everyone involved aware of the various SWOT’s of the business and help to generate greater returns.
6- Calculating ROI; Even if you plan to start a no-cost business, anything you invest your efforts in you need to be able to calculate the ROI - which is not possible without a business plan.
7- And, of course when you are going to pitch it to the investors; The first thing they will ask you for is the business plan.
A business plan is a must before starting any business. Even starting with just a one page plan to outline the business goals effectively can help you to create a successful business plan.
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