Getting Started In a Home-Based Business
There are many reasons people start a home-based business. Some of those are:
1. Laid off or downsized from their job.
2. Dissatisfied with their present employment.
3. A desire to be their own boss.
4. A need to be home more with young children or aging parents.
5. An entrepreneurial spirit burning to be released.
Whatever your reason for exploring a home-based business, there are several steps you need to take in order to make this desire a reality.
First, be realistic in your expectations. Too many people read advertisements that imply quick money and lots of it from a home-based business start-up. It may take up to three years before you begin to truly make a profit from your business. It also takes a lot of time to market a new business. If you are planning a home-based business in order to spend more time with young children or tend elderly parents, a full-time business (and income) may not be realistic.
Third, learn as much as you can about small business. Take courses at your local community college, contact the nearest Small Business Development Center for advice and assistance, and contact your local Chamber of Commerce for other resources. Find out if there is a home-based business group meeting as part of the Chamber or other small business group. Ask if you can attend a meeting as a guest. If so, share your business idea with the group and get feedback.
Fourth, write a business plan. It is your roadmap to reaching your destination. There are numerous articles and archived Small Business Advocate radio shows available to you that will help you with your business plan as well as the many other issues of starting and operating a business from home.
Fifth, contact an accountant for advice. I know your first reaction is you can’t afford an accountant right now; but, the reality is, you can’t afford not to seek an accountant’s advice from the very beginning of your business start-up. You should think about taxes, licensing, and insurance information. An accountant can advise you on issues such as the best form of business for your business. Should you incorporate or form an LLC (Limited Liability Company), or is a Sole Proprietorship right for you? They can also advise you about spend money for painting, carpeting or remodeling your home office and other ways you may be able to reduce the amount of taxable business income at the end of the year. Paying for an hour or two of their time now will save you much more than that amount later.
How do you find an accountant? Ask other business owners you know who they use, and contact the local Chamber of Commerce for a recommendation. If all else fails, look in the yellow pages and make appointments to interview 3 or 4 accountants.
There are many good books available that can help you consider the issues of running a business from home. Two that I personally recommend are Working From Home by Paul and Sarah Edwards and The Complete Idiot’s Guide to Starting a Home-Based Business by Barbara Weltman.
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