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
- Low overhead costs
- High comfort
- Immense flexibility
- Work life balance
- And a widespread reach of the customers through internet.
However, home based business is not as easy as it sounds. One can encounter tens of challenges when working from home , 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.
Every startup needs a business plan even if you are planning to start 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. So, you can have everything planned, i.e. from how to kick start your business to how to avoid running out of money while working on your idea.
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, or else you are planning to invest in a startup idea of someone else, 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 For Fundraising;
When you are going to pitch it to the investors; The first thing they will ask you is the business plan.
Wrapping it up!
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.