Plan Your Home Based Business

In this step of the home based business plan, you will

• Select a home based business
• Research the business you selected
• Select the legal structure
• Select your business name
• Write your business plan

You have an idea or ideas for your home based business. You feel that one or more may be a viable business for you.

Review each idea carefully. For each one, make notes on a sheet of paper about your idea:

• The type of business
• The skills needed
• How you will deliver your product or service
• How you will finance your business
• What your objectives are
• What the mission of your business is
• Whether you will have a partner or employees

Again, review each idea for a home based business and select the one that is best for you.

Next, you should research your idea. The level of research you do should be based on the risks and costs you will incur. The detail of your research depends on how complex your idea is and your target market.

With your initial research complete, you have notes to begin your home based business plan. The length and detail of your business plan is dependent on whether you will seek financing or investors.

If you plan to use your own funds, your business plan may include only the information you need to implement, manage, and grow your home business.

Either way, it is always best to write out your ideas. Read them aloud to yourself. This is one area we are familiar with. We wrote our ideas down and created a simple plan. As we proceeded with our first venture, the plan was not reviewed and updated. We made mistakes we would not have made had we stuck to our plan and reviewed it and updated it as we went along.

Create a marketing plan. Write down how you plan to get and retain customers and the media you will use. Add this information to your business plan.

Your home based business plan is a tool for success.

You have decided on your product or service. You have done your research and your idea is a good one. You know what you are going to do, how you are going to do it, and what it is going to cost you.

In this step of your home based business plan, you choose the legal structure for your business. There are five basic legal structures:

• Sole proprietorship
• Partnership
• Corporation
• S-Corporation
• Limited Liability Corporation (LLC)

Decide on your legal structure. You should seek legal advice from an attorney if you have questions regarding the legal structures and which one is best for you.

At the end of this step, you should have a basic plan for your home business opportunity.