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How to Start a Home Based Business
Not too many years ago, going to work meant traveling from home to a plant or office. Now more and more individuals are seeking out ways to do their work (either some or all of it) from the comfort of their own home. Some folks increase their work hours by ‘taking work home with them,’ some telecommute using technology to connect with their offices and customers, some work as independent contractors using their homes as their base of operation, and still others start and run their own homebased businesses.
Each and everyday people are entering the home business arena bringing with them their skills and creativity. They are turning their home office, kitchen, garage, basement or other available space into their own center of operations for their home-based business. Since the introduction of the internet, there has been the added opportunity of running a business online.
Getting Started
Before you take off and jump into a home-based business, you need to remember that it is still a business and will require your time and attention if it is going to succeed. You need to make sure that you have the time; skills and energy to get the business started and to keep it going once it have begun.
If you are working at home with a family, you need to be sure that your family is supportive of your enterprise and that you will be able to have space and time to accomplish the work you need to do to run your business. You will also need to have the self-discipline to maintain your work schedule and to be able to stay on top of your businesses activities.
Finding Your Niche
Before you put in your valuable time, effort and money, you should carefully consider the steps you are planning to take and whether the product/service you are planning to provide has a market. Do you have the time needed to invest in a business? Does your home have the space you need to start your? Can you clearly tell others about your business idea? What is your business's product or service? Who is your customer – do they need or want your product? How many others are selling your product/service (competitors)? What advantage or selling point do you have to attract customers to you versus your competitors? Do you have the skills, knowledge and talent to compete successfully in this area? Can you successfully run the business from your home?
Legal Requirements
Don’t forget that a home-based business is still a business and is subject to many of the same laws and regulations that affect other businesses. Here are some things to consider as you are starting out, but you should do your own research and don’t be afraid to consult professionals (attorney, accountant, business consultant, others) and your state to determine that laws and regulations that you will need to follow as you start and run your business.
- What are your city or town’s zoning regulations?
- Are there any limitations about the products you plan to market? States may impose restrictions products produced in a home environment. These may include, but are not limited to fireworks, drugs, poisons, explosives, sanitary or medical products and toys.
- Do you need to obtain a work certificate or license from the state?
- Does your business's name need to be registered with the state?
- Do you need a sales tax number in order to operate your business?
- Do you need a separate business telephone and bank account?
If you plan to hire employees, you are responsible for:
- Withholding income and social security taxes.
- Complying with minimum wage and employee health and safety laws.
Once you' have carefully considered the pros and cons of starting your own home-based businesses, then you are ready to begin putting together your plan of action for bringing your idea to fruition. This is typically a Business Plan.
There are a variety of resources that are helpful in gathering information about and putting together your business plan. Don’t skip over this step, being prepared will improve your chances for success. Talk to others who have been successful in home-based business, join a home-based professional association or "moonlight" at a similar business to learn the ropes. Success doesn't just happen, you have to make it happen.
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