Starting A Home-Based Business
by Kirk Bannerman
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Articles
Published on this site: January 2004 - See
more articles from this month
There are numerous reasons why people choose to start a home-based business. Some
of those reasons include:
- Dissatisfied with their present employment
situation.
- Out of work due to being laid off or downsizing by
their employer.
- A need to be home more with young children, an
infirm family member, or aging parents.
- A yearning to be their
own boss.
Whatever your particular reason for exploring a home-based
business, there are a few common steps you need to take in order to launch your
business.
First off, you need to come to grips with reality...be realistic
in your expectations. Far too many folks read advertisements that are hype and
imply quick money, and lots of it, from a home-based business start-up. It will
certainly take a year, and in some cases it may take up to three years, before
you begin to truly make a significant profit from your business.
I have
helped a large number of people start up their own home-based businesses using
the Internet. Over time, I have come to recognize two of the most important factors
for identifying people that should NOT start a home based business. If a prospective
entrepreneur says something like...
- "I'm broke and need to make
some money, fast!"
or,
- "I want to start a home-based
business, but I don't want to spend anything on it until after I start earning
some money."
...it is certain that they have not addressed reality
and, with that mindset, they will most certainly fail.
It takes a lot of
time to successfully market and promote a new business. If you are planning a
home-based business in order to spend a lot of time with young children or care
for the elderly, a full-time business (and income) may not be a realistic objective.
Second, spend some time researching your business idea. Make sure there
is truly enough of a market for your product or service.
It's easy to fall
into the trap of having a hobby or passion for something that you like to do and
just assuming that you can turn it into an economically viable business.
Third,
learn as much as you can about small business. There is a wealth of information
available on this topic and the US Small Business Administration is probably as
good a place to start as any. Just go to http://www.sba.gov/ and navigate to the
sections dealing with home based businesses.
Fourth, write a business plan.
It is your roadmap to reaching your objectives. There are numerous articles on
the Internet and in libraries that can assist you in developing your business
plan as well as addressing the many other issues involved with starting and operating
a business from home. As a starting point, here are a couple of Small Business
Administration website locations that should prove useful:
ww.sba.gov
And
last, but not least, seek the advice of a tax professional. Your first reaction
may be that you can't afford such expenses right now; but, in reality, you can't
afford not to seek such advice from the very beginning of your home business start-up.
They can advise you about ways you may be able to reduce the amount of
taxable business income at the end of the year.
Paying for an hour or two
of consultation with a tax professional at the beginning will probably save you
much more than that amount later on down the road.
I never cease to be
amazed at the number of people that seem to think that some magic is somehow created
when you put the words "home based" in front of the word "business".
It's still business...it just happens to be based in the home.
Kirk Bannerman: Operates a successful home based business
and resides in California. For more
details, visit his website at http://business-at-home.us
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