Why Do I Need a Business Plan, Even for Starting a Home Based Business?

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, 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.

without business plan

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 pretty much relax, as they are in the comfort of their homes. A business plan helps to keep them on their toes and constantly reminds them of various procedures and goals of the business.

4- Helps to create professionalism; A business plan has got well drawn policies and procedures and 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 but their goal is the same, i.e., to make money. Irrespective of whether it is any form of business, a good plan will make the staff aware of 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, you invest your efforts in and at the day end you need 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 is the business plan.


A business plan is a must before starting any business. Starting with writing one page business plan and outlining the business plan effectively can let you create a successful business plan.


If you enjoyed this content, please consider sharing it with others!

You might also like

Home Based Business Ideas
Home based businesses are popular almost anywhere in the world. Low cost, flexibility of working hours...
How to Start a Home Based Bakery Business
Starting a home based bakery is an ideal option for baking geek housewives. Besides that all those who...
Cost of Starting and Running a Consulting Business
Knowing the exact costs of starting and running your business is very much important before you take...
Bakery Business Plan Sample & Writing Guidelines
For some people, it is very important to put everything on paper before starting any business, so that...

Other Interesting Posts in the Category

Some Older Posts That You May Like