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".
There are numerous reasons why people choose to start a
home-based business. Some of those reasons include:
1. Dissatisfied with their present employment situation.
2. Out of work due to being laid off or downsizing by their
employer.
3. A need to be home more with young children, an infirm
family member, or aging parents.
4. 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:
http://www.sba.gov/starting/indexbusplans.html
http://www.sba.gov/library/pubs.html
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.
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Kirk Bannerman operates a successful home based business and
coaches others seeking to start their own home based
business. Visit his website at
Legitimate Home
Based Business for more details. |
