Home based business owners have learned to flourish in all kinds of markets. Due to the small size of businesses in this model, it becomes easier for people to be flexible and change according to needs of the market when compared to larger businesses. When you are in a home business, you must periodically review the market and adapt your tactics according to its needs.You:Where do you stand in your home based business now? What are your strengths and weaknesses? What are your goals, where do you want to reach 5 years from now? These are the questions you need to consider before you chalk out a strategy.If you current strategy is not working, don’t stick to it for long. Perseverance is important, but you should persevere on the right strategy.For example, if you website does not have enough visitors, all the money that you spend on ads for your website goes down the drain. You’ll first need to identify the reasons why the visitors do not stay on your website for long. What is it that is missing? Maybe you are not advertising to your target customers.Only then should you spend money on advertising.Your competition: Your home based business strategies are incomplete without the proper research on your competition. You must remember that in any market which you enter, there are a lot of other businesses which offer the same products or services like you do. You should determine where your product stands when compared with others.All you competitors do not necessarily fish for clients in the same pond. You need to find out about those that are competing directly against your niche in the market. These are your real competitors. if your product is as good as your competition, you must concentrate more on value added services, so that you gain credibility in your business.Your clients: Does your business cater homes or to offices? If you serve offices, how large are they?These questions will help you determine the quantity and quality of the product or service which you will need to deliver. If you are catering to homes, then you requirements may be less. Offices, depending on their size may require larger quantity of your product.Over-production will result in wasted efforts since not all of it may materialize into income. On the other hand, if you produce less than the required amount, your home based business may lose its credibility. At the same time you cannot forget that you must choose your market according to you capabilities.Considering all the above factors, before you start out on a home based business will give you a proper direction with respect to your strategy, which will lay a good foundation for your success.