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Here's a simple checklist you can use to determine if you're ready to start your home based business.
Feel free to add additional checkpoints of your own!
Assess your personality. Are you the entrepreneurial type that will do well
with your own business?
Appraise your skills, knowledge and experience. These are what will help you
determine what type of business to start.
Know your interests. If you're doing something you love, you are more likely
to work harder and enjoy yourself.
Figure out what type of business you want to run. Out of the huge number of
possibilities, select one that works well with your skills and your interests.
Do some market research. Is there a market for the product you plan to sell,
and at the price you plan to sell it? Can you produce the product efficiently enough
to turn a profit?
Check out your competitors. How will you distinguish yourself from them? Why
should customers come to you instead of to them?
Select a business name. Try to choose something that's indicative of the type of
products or services you are planning to offer.
Know the zoning regulations in your area. Make sure that your zoning
regulations allow you to operate a business from your home.
Research licensing and registration requirements and obtain what's necessary.
Find out what types of registration, licenses, and permits you are required to get
before you begin your home based business.
Research any additional regulations applicable to your product. Find out if there
are restrictions on the production of your product from your home.
Select a business structure, one of sole proprietorship, partnership, or corporation.
Assess your financial situation. Create a plan that will show your expenditures
against your income. Do you have enough to begin the type of home based business you're
planning?
Secure additional funds, if necessary. Get additional funding if you don't have
enough. Click here for
some options.
Prepare a business plan. Know what the focus of your business will be, and
have an action plan and timetable.
Purchase the necessary equipment, materials, and supplies. Only get what you need;
determine what is necessary and is not.
Talk to your local tax office. Ask for any relevant information on how your
home business will affect your tax situation.
Consider purchasing additional insurance. Think about getting extra coverage for
your business, or perhaps some liability insurance if necessary.
Set up your home office. Establish rules and "general" working hours [hours
slated for work, unless something of higher priority comes up].
Talk to your bank about possibly setting up a business account.
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