Depending on the type of home-based business you have or plan to start, you may not need a formal business plan.  If you aren’t approaching a lender for funding, you probably won’t be required to have a written plan.  But that doesn’t mean you shouldn’t have one.

A business plan is like any other plan - it allows you to take into consideration future needs and to map things out accordingly.  Your business plan can contain a number of components, depending on your particular enterprise.  Here are a few to consider.

1. Statement of Purpose - Describes your business and summarizes your goals
2. Executive Summary - Includes product or service, competition, location, management structure
3. Marketing Plan - General market overview, target market, customer demographics, competition
4. Financial Data - Funds needed for start-up costs, funding sources, financial analysis
5. Miscellaneous Documents - Resumes, business paperwork and contracts, etc.

Do you think you need a business plan?  While it may not be a requirement for running a successful business, having a business plan in place can help you to better forecast the future of your endeavor and clarify your intentions.  It can also give you peace of mind that you’re on the right path or let you know that you may need to tweak certain elements.  In any case, writing down your plan can help motivate you to achieve it, increasing your chance of business success.