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Every home based business needs a plan to be successful. It isn't enough to have a great idea for a home based business and just hang out your shingle. Which is a something that many home based business owners learn too late. So even if you aren't going to be borrowing money for your start up home based business, you still want to take some time to create a thoughtful, realistic business plan. The first step in creating a home based business plan is to clearly define your goals. It isn't just a matter of saying you want to make a certain amount of money in, say, five years or to leave your competition in the dust. These are certainly lofty goals, but they are vague. You want to define what your home based business really is at the beginning and where you want it to be. It's a good to break this into segments. Where do you want your home based business to be in six months? A year? Eighteen months? Two years? A home based business plan that outlines your objectives this way gives you a road map to refer to and will ensure you're on the right track and that you stay there. Second, you have to know the market potential for your home based business. After all, there has to be a demand for the product and/or service you are offering or you have no business. If your home based business is going to provide business cleaning services, for example, you'll want to be sure that there are companies and offices in your immediate area that need your service. You will also want to look at surrounding areas for opportunities to grow your home based business in the future. The amount and type of competition for your service needs to be taken into consideration too. If your area is already saturated with business cleaning services, you may need to consider a different service altogether. Without some planning and research, however, you won't know this in advance, and your home based business won't be as likely to succeed as it could be. Next, you want to consider all the costs your home based business will incur. A lot of times when people work at home at their own home business, they fail to consider the small expenses. Printer ink, paper, postage, long distance phone calls and cell phone bills are easily missed when considering the cost of operating a home based business. And these seemingly small amounts add up in a short amount of time for most business owners. So realistically look at all the costs involved with owning and operating your home business. This way you'll know how much you have to bring in to meet expenses and hopefully, to make a profit. Now you want to think about how you will market your home based business. Again, you can have the best product and/or service going, but it won't do you any good if you don't market it. You need a marketing strategy for your home based business, and you need to plan for the costs