Starting and developing small and medium home businesses can have many positive effects. This type of business can act as one of the solutions of economic development and is a suitable field for earning money. The research method is quantitative and in terms of the way of collecting information, it is a descriptive-survey research. In order to achieve the purpose of the research, the combined approach of strategic analysis and hierarchical analysis was used. First, in order to identify weaknesses, strengths, opportunities and threats through library studies, and then with the aim of collecting qualitative data, free and guided interviews were conducted with a number of experts in this field. Also, to collect more documented information, two questionnaires were used to prioritize and measure the relative importance of effective factors. According to the analysis of the results of this research, the possibility of transforming the family's potential into an actual power in the category of strengths, lack of expertise, skills and basic experience in the category of weaknesses, the possibility of advertising products and services cheaply in the category of opportunities and lack of stability in the price of materials. Primary and other materials needed by home businesses were placed in the category of threats as the most important factors in the four categories of the SWAT method using the hierarchical analysis method. Also, the determined strategies were chosen as strategies for the development of small and medium home businesses, diversification strategies.