How to Start a Home Based Business

You found out through researching that renting a commercial business would be too expensive; therefore, you decided to start a home based business. Yes – starting a home based business has some similarities to renting or purchasing a commercial building; however, there are some differences. Below are the steps to start a home based business.

Difficulty: Moderately Easy

Instructions

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   home-based business

   First – identify business opportunities that you can do in your home. Ask yourself these questions:
   
   1. What I am interested in?
   
   2. Is there a need for what I am interested in?
   
   3. Do I have the necessary equipment to operate from my home?
   
   4. If not, how much capital do I have, and is it enough?
   
   5. Where will I get additional capital, if needed?
   
   6. Since this is a home based business, will my zoning status allow me
   to operate this type of business? This is important because some
   residential areas will not allow certain businesses.
   
   7. Even if your zoning allowed your type of business, would you be
   inconveniencing your neighbors? For example, you could have
   excessive parking.

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   how to start home business

   Second – study or research your proposed business. Ask yourself these questions:
   
   1. Who are my competitors?
   
   2. What will make my product or service different from their
   product/service?
   
   3. Who are my consumers?
   
   Note: Even though your business is home based, a business plan can help
   you analyze your potential business venture.

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   how to start home based business

   Third – decide on a name and logo Try to select a name and logo that is innovative and easy to remember. Before making a final decision on your name, check with the U.S. Patent & Trademark Office to make no one else has your name. You can also research steps to getting a registered trademark. Look in the resources column for the website.
   
   Note: Remember – just because you are currently home based does not mean you have to think small. Your name and logo still matter.

4. 
    
   home business

   Fourth – apply for two businesses’ licenses, the state corporation commission and city you live in
   
   Note: To do this, you need to have decided on your business structure, sole proprietorship, partnership or LLC. Talk to an accountant and decide the best one for you. Because you are home based, talk to your accountant about business deductions, such as having a home office.

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   Fifth – get your tax identification number from the Internal Revenue Service (IRS). Look in the resources column for the website.

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   Sixth- get a DUNS number. A DUNS number identifies your type of business. Look in the resources column for the website.

7. 
    

   Seventh – make sure you have proper insurance. Even though you are home based, you still need business insurance and vehicle insurance. Check with your insurance agent.

8. 
    

   Eighth – make sure that you have any additional licenses needed, specifically, to your industry.

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   Ninth – research various certifications for your business. For example, you may qualify as a small disadvantaged business (SDB). Look in the resources column for the website. (Small Business Administration)

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    Tenth – if you want to do business with the government, you must register your business with Central Contractor Registration. Look in the resources column for the website.

Tips & Warnings

• Even though it is home based, run your business like a business.
• This means not having friends come over or call and talk for long periods of time.
• This also means not sleeping until noon, but getting up as if you are going to work outside of your home.
• This means having a separate business line. Do not allow your kids to answer this line, for it is strictly for business.

Resources

• • Small Business Administration
• • U.S. Patent & Trademark Office
• • Small Disadvantage Business Certification
• • Central Contractor Registration
• Duns Number
• Tax Identification Number