8 Steps To Start A Home Business And Be Successful

Over Seventy million home-based businesses are currently operational worldwide, according to a Resource's National Work-at Home Survey. All around the country, people who want more control over their lives are starting home businesses. 

These people live the new dream of owning a business, but avoiding the high overhead and start-up costs of a commercial location. If the idea of working from home is appealing, but you don't know where to begin, here is a step-by-step guide.

STEP #1 Decide What Part Of The House To Use

Select an area away from family activity. The perfect space is a separate room (or perhaps the garage), but any area will do, if it can hold all the business supplies and equipment, and also provide enough work space for desks, tables, or counters.

STEP #2 Determine How Much Time You Can Spend On The Business

Many people start a home business on a part-time basis while raising children or working outside the home. Others start full-time when family and finances allow. However you begin, figure out how may hours per week you can devote to the business. Make a weekly chart of your activities, examine it, and determine where the business fits. Don't assume you have time and find out later you don't.

STEP #3 Decide On The Type Of Business

Make a list of things you like to do, your work and volunteer experience, and items you own that can be used in a business. Look over this line-up, and using ideas from it, list possible businesses to start. Eliminate any business that isn't appealing or doesn't fill a need people have. For ideas on different types of businesses,  consult the List of business ideas on this article. Other ideas can be found in the source material listed in other articles on this blog.

 

STEP #4 Choose A Legal Form

The three basic legal forms are sole proprietorship, partnership, and corporation. The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one individual. It is the oldest form of business, the easiest to start, and the least complicated to dissolve.
Here are some of the advantages of this business form:
1. You own all the profits
2. Your business is easy and cheap to organize.
You don't need any government approval, although you may be required to carry a city, state or county license. Your  only other obligation is to notify the Internal revenue Service (IRS) for the purposes of sales tax.
3. You're the boss
4. You enjoy certain tax savings.
You must pay regular individual taxes on your income, property, and payroll, but these are not levied as special taxes, as with a corporation. You will also have to pay sales tax which you have received from your customers.
5. Greater personal incentive and satisfaction. Since you have your investment to lose if your business is not successful, you should be more willing to put time, thought, and energy into the business.
And when your business is successful, you enjoy maximum sense of accomplishment since you know its success was dependent upon your decisions about your management ability alone.
It outlines the advantages and disadvantages of each legal type of structure. If after reading it you are still uncertain what form of the business should take, consult an attorney.

STEP #5 Determine Where The Money Will Come From

There are three ways to finance start-up costs: use your own money, obtain a loan, or find investors. If possible, it is better to start small, use your savings, and not worry about repaying a debt. Also keep in mind that since you are a home-based, chances of qualifying for a loan or finding investors are slim until the success of your idea is proven.

STEP #6 Gather Reliable Information

Spend a few weeks researching home-based businesses.The Internet, A library or bookstore can provide numerous books on business basics, and on the specific type of business that interest you. This Blog is an excellent place to start with. 

If you are considering a computer business, get in touch with the association,To keep informed of what is happening in home business world, for subscription information;

STEP #7 Check On Business Location Restrictions

Find out how your property is zoned, ask what regulations apply to home businesses in that zone. Also, if you rent or live in a condominium, check the lease or homeowner's association rules to be certain a home business is allowed. 

Generally, if you do not annoy your neighbors with excess noise, odors, and traffic, you will not be deterred from running a business at home. The neighbors may not even be aware of the business, but it is necessary to know exactly what you can and can't do before you start. This is important should any problems or questions arise later.

STEP #8 Pick A Business Name And Register It

If the business you choose is different form your name, file an assumed (or fictitious) name certificate with the county. You are notified if another business already has that name, so you can select a new one.
Do this before investing in expensive stationery and brochures. 

It costs only a few dollars to file, and it protects the business name from being used by someone else in the county. Read more here.