Starting a home based business is a dream that many people share and numerous businesses have evolved from this dream creating a thriving cottage industry. Starting a home business can be a challenge but having relevant information, a definite plan in place and following basic business rules will help start you off in the right direction. The success of starting a home business depends on how much time and effort you’re willing to provide.
Benefits of Starting a Home Based Business
Having the freedom of managing your own time and being the boss of your own company is a prime reason people are starting a home business. For some, starting a home business is the main source of generating income while for others it can provide a second income. Not only do you have the benefit of time management, depending on the type of business you have, you can save money on gas, clothes, food, car repair and in some cases, day care for children. Punching a time clock, sitting in traffic and long commute times will be a thing of the past allowing more quality time with family and friends.
Things Needed Before Starting a Home Based Business
Do your research before starting a home business. Everyone has an idea but is it a good business idea and one that is needed in your area. You will need a business plan to follow and if you require start-up funding, a lender will want to see a plan. The basic items needed for starting a home business include a quiet work area in your home that is equipped with a computer and appropriate software for business use only, dedicated phone line, fax and copy machine, business software to keep track of bookkeeping, payroll software if you have employees, a separate business account for account payables and receivables, business cards, contracts for customers if needed, a tax information package from the IRS, shipping cost information if needed and a gas mileage log if you will be driving for your business.
Things to Consider when Starting a Home Based Business
Before starting a home based business, check with the city and county where your home resides to find out if you can have a business operating out of your home and what type of license is required. For tax purposes, you will need business tax software unless you have an accountant do your quarterly/yearly taxes. You must file business taxes so be sure to keep all receipts. You will have to purchase your own medical insurance unless you’re covered by a spouse and you may need workers comp insurance if you have employees. You must be a well organized and disciplined person in order to succeed at starting a home based business. Treat your home business as though you were in an office. Have a start time, dress comfortably, let your friends and family know you’re “at work” and don’t allow unnecessary distractions or interruptions to prevent you from doing a good job.
