How to Operate a Business From Home

Home-based businesses have exploded largely due to the marketing and sales venues offered by the Internet. Traditional home based jobs like child daycare and professional services continue to lure people away from the daily commute, too. The dream of being your own boss can be intoxicating, but there are many down to earth issues you have to face when you decide to operate a business from home.

Difficulty: Moderately Easy

Instructions

Discover How to Operate a Home-Based Business

1. Take stock of your abilities. Even if you have a passion which has resulted in your decision to take the home business route, you will still need to have business knowledge.

2. Find resources to fill the gaps in your abilities. You may want to partner with a friend whose talents complement yours. Check your community college for classes in starting a home business or consult with the Small Business Administration (SBA) or the Service Corps for Retired Executives (SCORE).

3. Analyze your finances. The majority of small businesses fail because they run out of money. Have enough money on hand to fund your enterprise for a minimum of 3 months, although funding for 6 months is ideal.

4. Replace your benefits. If you are leaving a job where you currently have health benefits, inquire about continuing them. Paying for your own benefits through your previous company's plan will be costly, but if you terminate benefits even temporarily, it can be more expensive and perhaps difficult to find coverage.

5. Investigate the zoning laws in your community. Many neighborhoods prohibit having even one worker other than yourself in your home unless the home has been properly zoned. Attempting to work underneath the zoning radar can turn out to be very expensive if you are caught doing so.

6. Develop a business plan. No matter how small the business, even if you will not be asking for financing, a simple business plan is mandatory. A business plan gives you goals and aids in mapping out the steps you need to take to reach those goals.

7. Present a professional face for your business. Business cards, stationery and even a basic website can be easily produced at home with just a computer, Internet access and printer.

8. Devise a marketing plan. It is no longer enough just to throw up a website or list products on an Internet auction site. Brainstorm multiple ways to market your services. Consider unusual markets as well as commonplace ones.

9. Network with other home-based business owners. Become involved in community activities and business organizations. Join the Chamber of Commerce and the Better Business Bureau.

Tips & Warnings

• For many home-based businesses you'll need a license to operate out of your home. You may also want to incorporate your business. Licensure and incorporation can take weeks, even months of lead time, so start the process as soon as you have decided upon your business.
• Checking into the income tax laws for your state should be at the top of the list if you decide to operate a home business. In some states there are substantial penalties for not setting up your home-based income status at the beginning of the year.

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