Monday

Things to do before you start a home business

Whether you are a stay-at-home mom or a displaced worker, you may have considered starting your own home business. While there are many opportunities available, there are some things to do before you start a home business that will make things easier in the long run. Remember, that starting a home business is not a way to get rich fast and in most cases, your hours will be dictated by client needs. You can control some aspects of your working hours but you should do them up front.

Talk with your family

One of the most important things to do before you start a home business is to speak with your family. This discussion should involve allocating chores if necessary and establishing boundaries around your work area. Family members should understand that even if you are at home, if you are in your work area, it is time for work and you should only be disturbed for emergencies. Failure to do this could result in your home business failing as you may find yourself constantly interrupted.

Establish your plan

While many people do not feel that a home business requires a business plan, this does not mean that you should not establish goals. Running a business from home entails certain financial considerations that you may not have considered. You will need to plan for taxes, registering your business with your town (when required) and ensuring you have the necessary equipment and supplies. In addition, you will want to have a plan for growth and plan for what happens if you wind up with more business than you can easily handle on your own.

Check legal issues

Each state and town has different ordinances that govern businesses that are run from home. Depending on your individual business, you may need to register your home business with your state or your town. Some will merely require that you file a DBA (Doing Business As) registration which is very inexpensive. However, if you will be shipping products, storing products, etc., you may need to have special licensing arrangements. In addition, you will want to find out if you have to have any special types of insurance for your home business.

Set up an accounting system

Before you start a home business, decide on an accounting system. You may only need to use something simple for billing like PayPal or you may need a more complex system. There are numerous billing options available that you should study before deciding which one is right for you. In addition, you should draft agreements to use with clients for billing and receiving payments. It is a good idea to establish an agreement regarding late payments early for your home business. Otherwise, you may find that you are consistently receiving late payments and may have no recourse.

Starting a home business is very exciting and has great potential for many people. However, if you do not prepare well, you could easily fail. Understanding what things to do before you start a home business and taking the necessary steps to prepare can help build a solid foundation for long-term success in your home business.

Image credit: By Hellno2 (talk) 13:15, 23 August 2009 (UTC).Hellno2 at en.wikipedia [Public domain], from Wikimedia Commons