If you are thinking of setting up a home business, writing a business plan is crucial. Many people who are operating a small business on a shoestring from their spare room may think this is unnecessary, but a well structured business plan will help you in a number of ways.

Most newly self-employed people write a business plan because they have to come up with a set of facts and figures to present to the bank manager when they ask for a loan. This gives an estimate of the amount of money the business is expected to make from sales of products and services and a total of outgoings likely to be incurred.

Not everyone starts out with a bank loan and those who don