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Step By Step How To Start Your Own Home Business Steps 1-11

Guest post by: Teresa Bohannon

Article Overview: Does the economy have you scared, or does the idea of owning your own internet, turnkey or home based business or just working from home appeal to you? Either way this is an easy step by step guide to help get you started.

Step By Step How To Start Your Own Home Business Steps 1-11

STEP #1 DECIDE WHAT PART OF THE HOUSE TO USE

Select an area away from family activity. The perfect space is a separate room 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. Depending on the type of business you plan on operating you may even be able to fit it into an old fashioned armoire, wardrobe or similarly sized home office/computer cabinet combination. This solution works especially well for an Internet based business operating out of a small home or apartment, since it allows you to figuratively close the doors on work when it is time to finish your work day.

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, see my articles on Low And No Budget Home Based Businesses Any Woman Can Start.

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.

For more information about this and other forms of business, send for the U.S. Small Business Administration (SBA) Publication MP25. Selecting the Legal Structure for Your Business . 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 INFORMATION Spend a few weeks researching home-based businesses. A library or bookstore can provide numerous books on business basics, and on the specific type of business that interest you. An excellent place to start would also be with my articles on:

Low And No Budget Home Based Businesses Any Woman Can Start

STEP #7 CHECK ON ZONING RESTRICTIONS

Find out how your property is zoned, the call City Hall and ask what regulations apply to home businesses in that zone. Also, if you rent or live in a condominium, check the lease or Homeowner 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 or even with the State. You can generally check this out by accessing the Secretary of State's website in your State, where you can instantly see what names are taken. In some states your chosen name can be reserved for as little as $20.00.

You will also want to find and reserve a domain name for your business, even if you cannot put up a website just yet, you can put up a placeholder "Coming Soon" style page with a clickable email link so you can start building your contact list.

Do this before investing in expensive stationery and brochures. It costs only a few dollars and it protects your business name from being used by someone else.

STEP #9HAVE A PROFESSIONAL ONLINE PRESENCE

Purchase a domain name and inexpensive hosting and either build a website using a template, or have a custom website built. Never, ever use an email address that is not directly tied to your domain. Nothing looks more unprofessional then using a Hotmail or Yahoo address for business. You can still check your mail using these online services, but always have your email sent directly to yourname@yourdomain.com and then blind forwarded or carbon copied to your online email account.

STEP #10 WRITE A BUSINESS PLAN

A good business plan clarifies your ideas and establishes a plan of action. A good business plan should include a description of what you are selling, your background and qualifications, who the prospective customers are and where they can be found, what is needed to build the business, how you plan to promote, and how much money is need for start-up costs.

If you do not know how to write a business plan, just type free sample business plans into your favorite search engine, some will pop up.

STEP #11 GET AN IDENTIFYING NUMBER

If you are the sole proprietor of the business and have no employees, you may either use your Social Security number or an Employee Identification Number (EIN) as the business number on official forms. If you have employees, or the business is set up as a partnership or corporation, you must obtain an EIN. To do this, complete IRS Form SS-4 (Application for Employer Identification Number) and file it with the nearest IRS Center.

Also see my Article Step By Step How To Start Your Own Home Business Steps 12-22
And my articles on Low And No Budget Home Based Businesses Any Woman Can Start

****
It is not wealth one asks for, but just enough to preserve one’s dignity, to work unhampered, to
be generous, frank and independent.
– W. Somerset Maugham (1874 - 1965) Of Human Bondage, 1915

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Article Tags: armoire wardrobe, business form, business supplies, computer cabinet, desks, full time, home based businesses, home business, home office computer, internet based business, legal forms, part time, profits, sole proprietorship, step 1, step 3, time basis, types of businesses, volunteer experience, work space



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