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Step By Step How To Start Your Own Home Business Steps 12-22
| Guest post by: Teresa Bohannon |
Article Overview: If the idea of owning your own internet, turnkey or home based business or just working from home appeals to you but you just do not know where to begin? This is an easy step by step guide to help get you started.
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Free Download - The ABCs and 123s of Self-Promotion For Independent and Self-Published Authors Part 5 Successful Blogging By Teresa Bohannon |
Step By Step How To Start Your Own Home Business Steps 12-22
STEP #12 OBTAIN A SALES TAX PERMIT
If the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect sales tax. If you do, they will send you the necessary information and forms to complete. You also use this tax number when your purchase items for resale.
STEP #13 OBTAIN LICENSES & PERMITS
It's very important not to overlook any necessary license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food.
Call City Hall to find out what is need for your particular business. In addition, Chamber of Commerce provide information on city, county and state licenses and permits.
STEP #14 SELECT BUSINESS CARDS, STATIONERY, BROCHURES
Spend time on the color, design and paper for these items. They make a definite impression-good or bad-on the people who receive them. If you are not certain what is most suitable and effective, you can consult a graphics designer or a creative printer whose work you like; however most stationary suppliers and home office software packages have easy to use free business card and brochure software that you can use. The office supply stores also have packages of preforated business card paper and matching brochure paper that you can inexpensively purchase to make your own until you settle on exactly which type you like--but do not purchase the cheapest quality.
STEP #15 OPEN A BUSINESS CHECKING ACCOUNT
Call several banks to find out what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service charge. Also ask about credit card if you plan to offer this convenience to your customers. Bank fees can be significant, so shop around for the best deal.
If your personal checking account is with a credit union, see if it can also provide a separate business account. when you open your account, you may need to show the assumed name certificate and business license.
Finally, investigate obtaining a credit card in the business's name. If this is not possible, set aside a personal credit card to use for business expenses.
STEP #16 SET UP RECORD-KEEPING SYSTEMS
Since you are reading this online you are probably computer literate so you can simply use your favorite bookkeeping program for recording keeping and tracking your income and expenses. There are several programs available for free if you do not have one.
You can also put together a simple and effective bookkeeping system with an 8 1/2 x 11" three-ring binder, columnar pad sheets and twelve pocket dividers from the office supply store. For each month, set up columnar sheets for income and expenses. Use a pocket divider for each month's receipts, bank statement, deposit tickets, and canceled checks.
In addition, an automobile log for business mileage, and filing system for correspondence, invoices, supplier catalogs, client records, etc. are two other useful tools.
For more information on record-keeping, see IRS publication #583, Information for Business taxpayers.
STEP #17 CHECK IRS REQUIREMENTS
If you comply with basic IRS guidelines, you can deduct a percentage of normal household expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc.) as a business expense. see the box accompanying this article and, for more detailed information, IRS publication #587, Business Use of the Home.
Also become familiar with these IRS forms: Schedule SE (compensation of Social Security Self-Employment Tax) and Schedule 1040 ES (estimated Tax for Individuals). Depending on circumstances, you may have to file them.
STEP #18 OUTFIT THE BUSINESS
Make a list of everything needed to start the business, but before you buy anything, look around the house for things you already own that are usable.
When you are ready to start purchasing, check the classified ads, online auction sites such as Ebay, craigslist, flea markets and garage sales. All are good, inexpensive sources for office furniture, typewriters, computers, answering machines, etc. However, purchase only what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.
STEP #19 DECIDE ON TELEPHONE REQUIREMENTS
Call the telephone company to find out the cost of a business phone in your area. If you cannot afford a separate business line, investigate the availability of signal ring. Signal ring provides you with one line, and two phone numbers that each has a different ring tone. Designate one number as your business number and advertise it as such. Then when a telephone call comes in you (and your children) will know that which ones are business calls and that only you are allowed to answer the business ring. Keep a record of long distance business calls and any phone expenses beyond your one basic no frills land line as they are a deductible expense.
Finally, absolutely consider the benefits of having of cell phone in addition to your land line. In today's world it is expected that you will be available even when you are mobile, and if you do not want the world to know that you are a one person office you can always forward the home phone to your cell phone when you are out of the office.
STEP #20 CHECK OUT THE POST OFFICE & UPS
Using a post office box as the business address down plays the fact you are home-based. It also prevents customers from dropping in at all hours.
While looking into box rental, ask for information on the various postal rates, particularly bulk rate, if you plan to do large or specialized mailings. If you mail many packages, check out United Parcel Service (UPS), as it is less expensive than the Post Office.
STEP #21 PURCHASE THE NECESSARY INSURANCE
Check with your homeowners insurance agent about a rider for your existing policy or the need for a separate business policy. Also make sure you have adequate personal and product liability coverage. Shop around, as each company has different rules regarding home businesses
To save money on medical insurance, join an association and participate in their group plan.
STEP #22 ORGANIZE THE HOUSE & YOURSELF
To have more time for business, organize and simplify household routines. Start by holding a garage sale to get rid of unnecessary possessions. Next, have a family conference and divide household duties, making sure each person does his or her part. The, set up a planning notebook to keep track of appointments, things to do, calls to make, errands to run, shopping, etc. Finally, set up a work schedule so you will not get sidetracked by TV, neighbor's visits, snacking, telephone calls, and random unproductive web surfing.
Creating and operating a home business is a wonderful and rewarding challenge. The satisfaction is not only in the money earned, but in doing what makes you happy.
Also see my article: Step By Step How To Start Your Own Home Business Steps 1-11
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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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Related Forum Posts
Re: Your choice between...
- I will take the $100,000 and double it on it becomes millions before I spend it. Though I am crazy about information, yet I would rather take the money and turn it into a million before I spend a dime out of it. I will do it in 4 steps.
Step 1 turn $100,000 to $200,000
Step 2 turn $200,000 to $400,000
Step 3 turn $400,000 to $800,000
Step 4 turn $800,000 to $1600,000.
After getting the goal of step 4, I will spend the $600,000 on myself then continue to double the millions again. I could then by the book for $1,000,000
Step by step approach
- Here's what I would do;
Step 1 - Observe Wal-Mart’s target customers, what does Wal-Mart offer them? How long do they stay? Discover what it is that they might want or need that Wal-Mart doesn't offer, and then write those ideas down. Some ideas to get you started are - A cafe or fast food venue, something for the kids to do while the parents shop, etc
Step 2 - Take that list, and weigh up the pros and cons of each idea, and then select the best one for you. Don't worry about not using all the space.
Step 3 - Start the best business for you, and then release the other ideas to the general market and sublet the rest of the space to those who could fill some of the niches you've come up with, plus any they can come up with. If money isn't a factor then developing the building to suit multiple small leases may be a better option, as it's a diversified income, which is potentially more stable than one big income stream.
Need a book recommendation for writing better
- I'm always looking for ways to improve my writing skills, so I was just wondering if anyone could recommend a good copywriting or copyediting book?
I was actually thinking of reading "The Copywriter's Handbook : A Step-by-Step Guide to Writing Copy That Sells" by Robert W Bly [u:w3cg00nn]OR[/u:w3cg00nn] "The Copyeditor's Handbook: A Guide for Book Publishing and Corporate Communications" by Amy Einsohn. Would anyone know if these books are any good?
Thanks
Re: Video conference system for families living in different cou
- 1) How much will someone pay for the service?
2.1) What costs are involved on the business end?
2.2) What percent on top of that do you think you deserve as profit?
3) How many people will sign up for the service?
These three will give you a rough estimate of the value of your idea.
use the equation below with respect to the questions above to figure out the value of your idea.
((1 - (2.1 + 2.2)) X 3)
You have alread identified major problems for your idea -- you have competition that is free! Computers are easy to hook to televisions, and it is becoming easier at very fast rate.
(For free stuff other than skype, look up NetMeeting if you have Windows XP.)
The video conferencing systems do a poor job of creating the feel of a physical presence.
Even high dollar systems with dedicated internet bandwidth and extremely nice tracking video cameras do a poor job, especially for long distance runs. I have the experienced the disappointing performance of some of these systems on our campus.
Video can not recreate the connection felt when in the same room with another person.
Step 1, Quickly and roughly calculate the cost of the system you propose.
Step 2, Compare that with what you think someone will pay and the cost of your current compeition.
Step 3, Go / No-Go.
Books for Women Entrepreneurs
- There's a thread for good books in the Resources folder, but it doesn't target books for businesswomen particularly, so I figured I'd start such a thread here.
It doesn't matter how successful you are in your business - it's always possible to learn something new.
In subsequent posts I give Table of Contents and brief descriptions for various titles - most of them devoted to the businesswoman - and sometimes a review. If anyone else has read a review, or has read the book and found it useful, please comment!
1. The Old Girl's Network
2. Mother's Work
3. The 7 Greatest Truths About Successful Women
4. Pitch Like A Girl
5. Workplace Warrior
6. Treasure Hunt: Inside the Mind of the Modern Consumer
7. Contingency Planning & Disaster Recovery
8. She Wins, You Win
9. Napoleon On Project Management
10. Why Good Girls Dont' Get Ahead, But Gutsy Girls Do
11. Comeback Moms: How to Leave Work, Raise Children, and Restart your Career even If you Haven't Had a Job in Years
12. The One Minute Millionaire
13. Talking From 9 to 5
14. Soloing: Realizing Your Life's Ambitions
15. 101 Best Home Based Businesses for Women: Everything You Need to Know About Getting Started on the Road To Success
16. Work With Passion: How to Do What You Love for a Living. Revised and Expanded
17. Fail-Proof Your Business: Beat the Odds and be Successful
18. Confidence: How Winning Streaks and Losing Streaks Begin and End
19. Women Don't Ask: Negotiation and the Gender Divide
20. Millionaire Women Next Door: The Many Journeys of Successful American Businesswomen
21. Start Small, Finish Big: Fifteen Key Lessons to Start - and Run - Your Own Successful Business
22. Rewired, Rehired or Retired: A Global Guide for the Experienced Worker
23. The Martha Rules: 10 essentials for achieving success as you start, build or manage a business
24. The Essentials of Entrepreneurship: What it takes to create Successful Enterprises
25. Net Ready: Strategies for Success in the E-conomy
26. The Promotable Woman
27. Leave The Office Earlier: The Productivity Pro shows you how to do more in less time and feel great about it
28. The Work At Home Balancing Act: The professional resource guide for managing yourself, your work, and your family at home
29. Secrets of Six-Figure Women
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