A simple business plan can start as a vision in your mind. However, you will need a concrete roadmap to use as a reference in managing your business. Write down the following:

- your purpose in going into business
- vision and mission (if you have them)
- the products and services you will be offering
- your business marketing plan (how you plan to sell, promotions, ads, etc.)
- your target market
- suppliers of materials
- your budget plus capital (include an assessment of your assets)
- guide for expansion (in case you want to spread out but don't want to stray too far from your vision and mission)
- your competitors and their business and marketing style
- the industry you will be entering, including information about how it behaves and potential for growth
- how your business will compete in the industry
- contingency measures (what you will do in case of mistakes)
- how you will sustain your business

It doesn't have to be a sophisticated business plan. The easier it is to understand, the better it is. This is your guide to help you keep track of the activities and business decisions you make. In case you lose your way or need to change something in your marketing or business style, your business plan will come in handy.

The important thing to remember in ensuring that your business structure is sound is that it should make sense. You should be able to look at the general picture and say you understand and that you'll know what to do. If it's too complicated or confusing, it's easy to lose interest and simply give up or worse, make a bad mistake.

Knowing the basic structure of a home-based business will help you design an effective business plan for a proprietorship. Many businessmen, even experienced ones, have to pay for costly mistakes because they have a faulty business plan.

However, there are also some who make a bad business plan work because they are able to think on their feet and make the proper corrections at the right moment. Be flexible and learn everything you can. You'll find it handy in the future.

Now that you know the basics of proprietorship and how to create a business plan for a home-based business, what are you waiting for? It's time to make your entrepreneurship dreams come true.