Home Based Businesses: What You
Need To Know
By John Williams
Chances are you already have a good idea for what type of business you’d
like to run out of your home. If you don’t have a clue, you can find ideas
for home based businesses online, by doing some serious thinking, and by
talking to other people who are operating them. A lot of businesses have
associations and organizations and there are also community business groups.
Visit some of these to find some ideas for home based businesses or to
learn more about a specific interest.
Once you’ve decided on some ideas for home based businesses, you need
to come up with a business plan. Even home based businesses need a plan
in order to be successful. If you need to borrow money to get started,
it will be required by your lender. Business plans can be extremely complicated,
so you’ll be better off making one that you understand and will follow.
The main point of business plans, for big companies or home based businesses,
is to give you a road map to follow and meet your goals. If you haven’t
written a business plan before, you can find many examples on the Internet.
The main points should include:
* Your motivation
* Product or service
* Target customers
* Revenue goals
* Time frame
* Knowledge of competitors
* Marketing plan
* Logo or your personal style
* Plan one year at a time; adjust as needed
As you get into the flow of things, you may decide to tailor your plan
a little differently. This is normal in home based businesses.
Think about financing as you peruse home based businesses. Something
like a secretarial service wouldn’t require a huge investment. If you’ll
need heavy marketing, you may need to borrow. Home based businesses are
cheaper than founding a huge corporation, but often there is a capital
investment involved.
General expenses in home based businesses may include:
· New computer or upgrade
· High speed Internet access
· Fax machine with dedicated line
· Copier
· Website
· Printed business materials (cards, stationery, invoices, purchase
orders, etc.)
· Inventory if required
· File cabinets or other storage
These items will vary, depending on types of home based businesses but
the ones listed are fairly standard.
Home based businesses are subject to regulations and taxation just as
their bigger counterparts are. You’ll need to check your local zoning commissions
to find about the need for permits for home based businesses. If little
traffic is coming to your home, you shouldn’t have to do anything. If heavy
car or foot traffic will visit home based businesses, there may be issues.
Unless you’re well informed about tax law, you should probably consult
with an accountant. Home based businesses undoubtedly will have write-offs,
especially during your first year. You’ll also need to know about incorporation
and business licensing.
If you do plenty of research on home based businesses before you get
started, you’ll be able to start with confidence.
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