STEPS TO HOME BUSINESS SUCCESS

2006-10-26T05:53:00.000-07:00

18 STEPS TO HOME BUSINESS SUCCESS
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.
Millions of people are making the shift from traveling to the workplace to setting up businesses at home and millions of home-based businesses are already in operation. According to Link Resource's National Work-at Home Survey, all around the continents people who want more control over their lives and time are starting home businesses
A lot of people are living the wonderful dream of owning a business, while avoiding the high overhead and start-up costs of a commercial location.
Home based business releases you from the hassles and stress surrounding office employment, commuting in heavy traffic daily, office politics, non-control over your time and living pattern to mention but a few.

If the idea of working from home is appealing, but you don't know where to begin, here is a step-by-step guide.

STEP #1 - DECIDE WHAT PART OF THE HOUSE TO USE
Select an area away from family activity. The perfect space is a separate room (or perhaps the garage or basement or even a partitioned area of a room). 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. Designate the chosen area as your office and treat it as such in order to be more productive. Also ensure the security of the business area, preventing such hazards like home injuries, fire and electric shock and so forth.

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. Whichever way you begin, figure out how many 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. List possible businesses to start. Eliminate any business that isn't appealing or doesn't fill a need people have. If you have what people need, they will beat a path to your door, even if you live in thick forest.

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 have a form of license. You're the boss
3. 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 may also have to pay sales tax which you have received from your customers.
4. 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.

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. Your savings will include your personal savings, financial gifts from friends, relatives and other acquaintances, and other sources of fund devoid of placing stress on you. Also keep in mind that since you are a home-based entrepreneur, 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. Attend Self-Employment seminars as these also provide very good source and inspiration.

STEP #7 - CHECK ON ZONING RESTRICTIONS
Find out how your property i.e your home office location, is zoned, and ask what regulations apply to home businesses in that zone. 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
Do this before investing in expensive stationery and brochures. Business name gives your business state recognition and protects the business name from being used by someone else in the country.

STEP #9 - 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 and the services you render, 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 needed for start-up costs.

STEP #10 - 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 and drugs. Visit the government agency in charge of licenses and permit and the chamber of commerce for details on what to do.

STEP #11 - 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, consult a graphics designer or a creative printer whose work you like. These items are also very good channels of promotion and advertisement of your business.

STEP #12 - OPEN A BUSINESS CHECKING ACCOUNT
Visit 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 find out the benefits they offer their customers. Shop around for the best deal.
It is advisable to always have a business account different from personal account.

STEP #13 - SET UP RECORD-KEEPING SYSTEMS
Put together a simple and effective book-keeping system propably 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.

STEP #14 - 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, Look for inexpensive but good sources for office furniture, computers and other basic needs. Get only what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.

STEP #15 - DECIDE ON TELEPHONE REQUIREMENTS
If you cannot afford a separate business line you may use your personal phone in a business but keep a record of long distance business calls as they are a deductible expense. Finally, consider the benefits of a professional voice mail or answering machine to catch calls when you are out.
Have specific hours you are available to answer your business phone calls as there are people who will not leave message on voice mail. Do not also do business on the phone with kids screaming or playing noisily in the background.

STEP #16 - CHECK OUT THE POST OFFICE & UPS
Using a post office box as the business address down plays the fact that 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) or other courier companies as better option.

STEP #17 - PURCHASE THE NECESSARY INSURANCE
Check with your 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

STEP #18 - ORGANIZE THE HOUSE & YOURSELF
To have more time for business, organize and simplify household routines. Start by getting rid of unnecessary possessions occupying your supposed home office. Next, have a family conference and divide household duties, making sure each person does his or her part, and setting necessary but informal boundaries around the home office. 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 regular work schedule and stick to it so you won't get sidetracked by TV, neighbor's visits, snacking, and telephone calls.
ANTIDOTES FOR SUCCESS IN ANY HOME BUSINESS
DEVELOP THE RIGHT ATTITUDE AND RIGHT MINDSET
HAVE A BURNING DESIRE FOR SUCCESS
INCULCATE SELF-DISCIPLINE AND RUN YOUR HOME BUSINESS PROFESSIONALLY
BE PERSISTENT; BE PATIENT; BE FOCUSED
KNOW YOUR JOB AND LIKE IT; CONSTANTLY DEVELOP AND IMPROVE YOURSELF IN YOUR CHOSEN BUSINESS
WORK SMART AND TAKE YOUR BUSINESS SERIOUSLY !
PROMOTE YOUR BUSINESS
SOME BUSINESS IDEAS