do you have to have a business plan for a small business out of your home?

Answer 1

No. But, everyone should have a business plan. That's the most important first step for any business.

Answer 2

Why do you want a business plan? You already know the obvious reasons, but there are so many other good reasons to create a business plan that many business owners don't know about. Building your small business into a viable competitor in the marketplace takes skill and dedication. Having a plan for growth--a business plan--will help you focus your efforts.
Set specific objectives. Good management requires setting specific objectives and then tracking and following up. Be strategic. Develop a plan; don't just wing it.
Decide whether or not to rent new space. Rent is a new obligation, usually a fixed cost. Do your growth prospects and plans justify taking on this increased fixed cost? Shouldn't that be in your business plan?
Hire other people. This is another new obligation (a fixed cost) that increases your risk. How will new people help your business grow and prosper? What exactly are they supposed to be doing? The rationale for hiring should be in your business plan.
Decide whether you need new assets, how many, and whether to buy or lease them. Use your business plan to help decide what's going to happen in the long term, which should be an important input to the classic make vs. buy. How long will this important purchase last in your plan?
Develop new business alliances. Use your plan to set targets for new alliances, and selected portions of your plan to communicate with those alliances.
Deal with professionals. Share selected highlights or your plans with your attorneys and accountants, and, if this is relevant to you, consultants.
Valuation of the business for formal transactions related to divorce, inheritance, estate planning and tax issues. Valuation is the term for establishing how much your business is worth. Usually that takes a business plan, as well as a professional with experience. The plan tells the valuation expert what your business is doing, when, why and how much that will cost and how much it will produce.
Seek investment for a business, whether it's a startup or not. Investors need to see a business plan before they decide whether or not to invest. They'll expect the plan to cover all the main points.
Back up a business loan application. Like investors, lenders will want to see the plan and will expect the plan to cover the main points.
Grow your existing business. Establish strategy and allocate resources according to strategic priority."
Who are your customers?
Where are they?
Why do they buy?
What do they buy?
Is the demand for your product rising or falling?
Who is your competition?
What effect does the economy have on your business?
What new customers and markets can you reach?

yes most definately you need a business plan even if it is a home based small business.

Answer 3

You never HAVE to have a business plan. Your business plan is like the foundation of a sturdy home. It gives you the outline upon which you are going to build your business, and the structure to build onto in the future. A good business plan gives you something to refer to down the road, not only financially, but ideally, it will remind you in a year or so of where you were, and where you wanted to be. It can be a major road marker, and a map to the future of your business. No business is too small to have a good foundation.

Besides, if your business grows as big as your dreams, you will be prepared to show your growth pattern to financial institutions for funding, or to a potential buyer, or a new partner at a moments notice. Just think of how professional you will look with your prepared numbers under your arm!

Good luck in your endeavors, whatever they may be!

Answer 4

It would be wise to. My husband has his own landscaping business and his office is our home. He writes everything down that he intends to have for the business {materials,tools so on} he also writes his goals for the business. If you are looking at getting a loan for your business, more than likely they will want to know what your business is about and where you see it going in the years to come. Usually libraries and other community places will hold small business meetings giving you a chance to get free info and ask any questions you may have. Also find someone that is already successfully running a small business and ask them questions about how they got started most people would be eager to share that with you! Good luck to you!

Answer 5

You will fail at almost anything you attempt if you do not have a plan...

It need not be complicated. Plain i
English you understand....

First and most important...deice where you want to be in twelve months...now...work backwards

do I need money? How much?

do I need a product? What?

What is the business? can I find other same or similar businesses on the Internet or elsewhere to compare and to get ideas

Is there another business like the one I want..if so...apply, find out as much as you can...

Look in the classifieds under business Opportunities....call some of the offerings...get their plan...see how it fits your needs....use materials from these plans...all the great marketing people do.

If you take someones idea...that is stealing...if you take a little from a lot of ideas...that is research....

Get business plans from other companies...see how they structure them....then...from all the research use the ideas you like most and design yours.....without Alan...you will fail....

Most important..once you make the plan...follow the plan...

Answer 6

NOT NECESSARILY -- especially when we are talking of the written business plan. If you will not ask for a loan or invite investors to the business, there's really no point spending 2 months or more writing a business plan

What you need, however, is to go through the process of creating a business plan -- even if you don't write it. Analyze what you what your business to be, who your target market is, how you are going to reach them, and what your resources should be, among other things.

In fact, a Wall Street journal article http://startup.wsj.com/columnists/enterprise/20070110-spors.html found that:

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A study recently released by Babson College analyzed 116 businesses started by alumni who graduated between 1985 and 2003. Comparing success measures such as annual revenue, employee numbers and net income, the study found no statistical difference in success between those businesses started with formal written plans and those without them. The study concludes that "unless you need to raise external start-up capital from institutional sources or business angels, you do not need to write a formal business plan."
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The important thing is that you UNDERSTAND your business well enough to formulate effective strategies to make it work. A written business plan is optional.

Answer 7

You don't have to have a business plan, but one is always helpful because it helps you see upfront what your start-up costs will be, what your profit centers are, your marketing strategies, identifying your competition, and overall fitness of your business structure.

I've been in business (out of my home) for a little over a year, and the business plan has helped me to map out my expenses, monthly cash flow, profit and loss information, and helped me even write copy for my flyers and brochures.

I say, just have one (doesn't have to be elaborate) so that if an investor comes along suddenly, you won't be scrambling trying to get one together.

If nothing else, write down:
-your vision, mission, and goals
-The market you serve and why
-The different ways you plan to make money
-Your known expenses to even start the business
-The ongoing expenses that you can expect (payroll, phone, internet, petty cash, software and supplies, etc.)
-Create a marketing plan
-Come up with a customer service policy (if you're selling products)
-File for a business license with your local government
-Get a logo and name for your business. Register them for legal purposes

Hope this helps!

Heather

http://www.print-ovations.com
http://www.hitechprosperity.com

Answer 8

yes. you need some type of game plan what you are going to do and how you will do it.