The truth of the matter is, that until your home business has made its first sale, you do not have a home business. The only thing that you have at that point is a business idea.
You must determine in advance if there a strong demand for your home based business product or service and how many people are willing to purchase it? You can do this very cheaply and effectively online, in internet forums and discussion rooms.
You must know who your potential home based business customers are and which market group are they in? Test a representative sample of your target market and determine if your potential buyers would buy your product or service from you.
You must decide what is the best market price to sell your business products or services for? Try to determine how much the potential customers would be willing to pay for it. A very good option to do market research is to hold a survey or public poll. You must determine whether or not you can sell your products or services to the public at a reasonable cost. With the power of the internet you could effectively market your home based business products and services to the whole world.