Thousands of business owners have started their business in their home. Even home-based businesses have to be carefully planned and it is important to check local (city and county) zoning and licensure regulations. The business planning for a home-basesd busienss is the same as for a small business, you just need to also take into consideration how the presence of a business in your home will impact your family and how family members will impact the business.
For more information on developing a home-based business plan, go to SBA Pub MP-15, or visit Cooperative Extension's Small and Home-Based Business Virtual Library maintained by the University of Maine Cooperative Extension.