Starting a Home Based Business

By Article Specialist

A home based business is very appealing – very low overhead costs, absolutely no travel time and provides greater flexibility in balancing time for work and family.

For decades, home based businesses have continuously played a pivotal role in the economy. It greatly contributes to a household’s purchasing power for people who cannot be employed on a regular schedule for whatever reason. In fact, some of today’s big businesses had their humble beginnings from the home.

Just like any other type of business a home based business requires comprehensive preparation, assessment, start-up proceedings, registration and marketing.

The following basic checklist covers the most important points that you will need to consider and will help you stay focused.

1. Create a Business Plan
It is advisable to create a business plan, which contains your mission statement and targets that you hope to accomplish. It is your road map that will lead you towards success and a concrete yardstick against which you can measure your progress. Moreover, having a business plan ensures you get to where you are going.

2. Set up your Web Site
Majority of home based businesses offset their physical absence by having a virtual presence via the Internet, 24/7. In creating your business plan, you also need to purchase and register a domain name, set up and test your web site. The Internet has spawned a truly global community allowing you to conduct business in all corners of the globe.

3. Establish your Business Entity
One of the most important decisions you will make is to decide if you want to set up your business as a sole proprietorship, a partnership, or a corporation. Choosing your particular business type depends on several factors like available capital, your ability to do business on your own, and the scope of your business. Some of today’s big business corporations began as sole proprietorships or partnerships.

4. Get your Business License
Register your business name – get a business license and other compliance requirements that may be required by your city or state. Make sure that your type of business is allowed under your local zoning regulations. It is a waste of time to set up a business without registering your business name to find out later that zoning regulations in your area do not allow your particular type of business.

5. Obtain Insurance
If available, obtain and purchase insurance for your business. Find out what the insurance requirements are for your type of business, besides business insurance is one of the requirements of lending banks if you plan to borrow money for startup operations.

6. Purchase Equipment Requirements
Make a list of basic office equipments you will need such as computer, fax, printer, stationary supplies, and business cards. Once you have your list, go ahead, purchase them, and familiarize yourself in using and operating each one of your equipment.

7. Plan your Schedule
Your clients are not aware of the physical location of your business; however, make sure that they can get in touch with you, and more importantly, that you can get in touch with them. Make a regular schedule of when to open your e-mail and reply to your clients.

8. Organize your Work Area
Even if you work under the stairs, in the attic or the basement, make sure that everything is in its proper place. Make sure that your home office is well-organized. It is easier to work when everything you need is just at arm’s reach away.

9. Organize your Inventory
If your type of business requires you to stock merchandise in your home, make sure your floor stocking is well-organized based on FIFO (first in, first out); establish a reorder quantity so that you are continually able to supply clients’ requirements with no lead time lag. Make sure your merchandise is easily accessible and free from dirt and debris. Have all your shipping materials such as packing cartons, tape, address labels and bubble wrap ready nearby.

10. Ready, Set, Go!
As soon as you have everything ironed out, permits and licenses taken cared of, website up and running – you are now ready to open your business to the public.