This article walks you through all the necessary steps required to start a home based business. If you’ve never started a home based business before, you will likely feel a bit intimidated at first. However, once you’ve checked off all the things you need to do, you will be ready to get started. Create a solid business concept and do your research: When you’ve decided on a concept for your new business, research local businesses to see what they do to make themselves stand out from the crowd. Then, come up with an idea that you believe can’t be done by anyone else, and make a list of pros and cons.
Look into business structure and legal documents: You’ll have to create a complete set of business documents, including your company name, business name, Memorandum and Articles of Organization (or Memorandum of Association), and Operating Agreement, if you are using a separate accounting firm. You’ll also need to determine which business entity you wish to use, such as incorporation, limited liability corporation, or an LLC (limited liability entity). Your chosen business entity will determine the rest of the structure of your new business. Once this is decided on, you can move onto deciding on your business name.
Choose a location: Decide where you will run your business from. Is it better in your home or in a more traditional “brick and mortar” setting? Think about the local market you will be targeting and work to tap into that market. Will you offer your services remotely? Will you hire employees on a freelance basis? Be realistic in your expectations of your business structure and staff.
Get a unique identification number for your company: You will have to incorporate your business entity in order to register it with the appropriate government agencies, such as the Small Business Administration (SBA). You will want a unique identification number that reflects your business name, as well as a phone number for customers or clients. If you don’t already have an identification number, it may be a good idea to get one. An identification number will make it easier to find you and any complaints or success stories in the future.
Create an adequate insurance policy: Protect yourself, your assets, and your personal assets. Your personal asset protection would include insurance policies such as life, health, dental, and liability policies. The life policy is the most popular choice among small business owners. It provides death benefit and cash value coverage, and will help you financially through your retirement.
Get business references: A reference from an existing customer is a good idea, especially if the previous customer was very satisfied with your services. References are particularly important when hiring employees. Make sure your potential employees are knowledgeable about your products or service. It is also a good idea to provide your employees with training materials to make them familiar with the operations of your small business. Lastly, when you begin operation, do not forget to submit your articles to various directories. You will need to have a web site to accept your customers; this will ensure online marketing and you will begin receiving more customers.