The question is frequently asked if you need a “business plan” for your home based internet business?

The simple answer to this often asked question is: it depends.

If the purpose of the internet site is an extension of an existing business–especially a “brick and mortar” business, you may be well to incorporate the addition of your internet business arm into your existing  business plan.

If, on the other hand, you are beginning or creating a new at home internet business then the answer may be no!  The answer here has more to do with how detailed and encompassing your at home web business is going to be.   This may sound like a “cop out” answer, but there is truth in what is being said.  If your business is planned to be a major distributor of a several products you plan to produce, you may well be in need of a more formal business plan.

Both business models need a plan, map or guiding directions, to help them succeed.  Pointing your car in the direction of where you want to go doesn’t mean you’ll get there without navigating the “detours” you’ll find along the way.  If you’ve never been where you want to go, you definitely need some directions to help you get there.  That’s what a business plan offers, as does a marketing plan/strategy.

Most home based businesses have little need for a formal business plan.  The primary purpose of a business plan is to address the overall vision of your business to satisfy the needs of potential bankers and/or investors in raising capital for your business.  Home based business have little need to raise significant capital to begin or operate their internet business–most fund their beginning business from their wallet.  Should a “home based business” grow significantly to warrant consideration for major expansion, where raising capital could become a factor, then a formal business plan should be created.

More than a business plan, a marketing plan or strategy would fill the need for most home based internet businesses.   There are some similarities in a marketing plan versus a business plan.  Without a “plan” of some sort you would fill like you’re in a garden maze.

The real spirit of a business’s success is in the execution–not the ideas!  If you have written directions to follow, and are steadfastly committed to following them, you will succeed.  BUT YOU NEED SOME PLAN or STRATEGY,  as basic and simple as it may be, to follow and direct you!

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This entry was posted on Monday, August 31st, 2009 at 4:20 pm and is filed under Affiliate Marketing, E-Commerce & Internet Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.