How to Prepare for a Home Based Business

How To Prepare For A Home-Based Business

-         By Deborah Lee Lott

It has been estimated by the Small Business Administration that more than 300,000 people start their own business each year.  The following is a guideline to help you to join those ranks of the home based business owner. 

Some of the first things you need to think about and plan for are:

The type of business you are interested

If the business has adequate income potential

Whether or not you will need some sort of training for the business

What kind of equipment or materials you will need

What to price for your product or services

How you want to market or advertise

And of course, costs to get the business up and running

If you are able to start the business part time while you a are working at your regular job, instead of jumping in full force, you will be able to take the time needed to do things the correct way the first time around.  This will save you a lot of frustration and keep the urges to give up at bay. 

Keep in mind that starting your own business will not be easy.  You’ll have to wear many hats when you first start out and it may be a little overwhelming.

It’s important to choose a business that suits your personality, but above all else make sure it’s something that you enjoy.  Too many people spend the majority of their lives doing work that they don’t like because they feel like they have to.  Doing something that you enjoy or are passionate about is the key to not feeling like you’re working.  Finding something that suits you may take some soul searching.  Taking a hard, long look at yourself may not be easy, but believe me it’s important.  A good way to start is to think about some of the jobs you’ve held in your past and list which ones you liked and what you liked about them.  You can also try turning a hobby into a business, which is what a lot of people do. Try to visualize yourself doing this business, not only now, but in five years from now.

After you decide what kind of business you want to start, you’ll need to check with local authorities to make sure you can do this out of your home.  Some states have regulations and require licensing for certain types of businesses.  The Small Business Administration  (SBA) for your area may have pertinent information on such regulations and licensing as well as other useful information for getting started.

Setting up an area for your office is the first step in helping you feel like a professional.  You need to have a dedicated area to work in whether it’s a corner, a closet or a whole room.  Setting aside specific hours in which to do business is also very critical.  Whatever household chores that can wait, need to wait.

Unless you have some knowledge about bookkeeping, you’ll want to find a good accountant or bookkeeper who is knowledgeable about current IRS criteria and can help you with quarterly filings and other such requirements. 

If your business is going to be service related, you may want to check into getting additional business insurance to protect yourself as well as your clients.

There is a lot to think about before jumping into a business and we haven’t even covered half of it.  There’s also the prospect of a partnership.  If you are going into partnership with anyone, even if it is your best friend, it will be in your best interest to have a lawyer draw up a partnership agreement.  A lot of friendships have been dissolved over business disagreements, so protect yourself just in case.  In speaking about relationships, make sure you talk to your family about your plans, because whatever you do will affect them in some way.  Ask for their support and include them if at all possible. Let them know how much of your time will be required to run the business and how you are going to adjust it to your other responsibilities.  Make sure to let them know that you can schedule your time around their needs. Keep in mind that it will take more time than you anticipate to get up and running.  You’ll need to set goals for yourself, but at the same time be willing to be flexible if something unexpected comes up with your families needs.  It will take some balancing and juggling at first.  Know that this isn’t going to be an easy road, but if you stick with it, the payoffs will be phenomenal.