A 20-Point Checklist for New Home Businesses
© Copyright 2002, Angela Wu
You're eager to start your home business and bring in some extra
income. Although you're probably bursting with ideas and enthusiasm
and want to jump right in, take some time to plan and prepare
for your new venture.
Here's a simple checklist you can use in the startup phase of
your home based business. Feel free to add additional checkpoints
of your own!
1) Assess your personality. Are you the entrepreneurial type
that will do well with your own business? Are you self-motivated,
disciplined, and willing and able to put forth the effort, time,
and money? Are you the type that can get up after a failure and
try again? There are many quizzes available to help you decide
whether or not you're ready for a home business.
2) Appraise your skills, knowledge, and experience. Make a list
of businesses you think you would be capable of building.
3) Know your interests. If you're doing something you love,
you are more likely to work harder and enjoy yourself. A good
place to find unique business ideas is here: http://homebasedwork.com/cgi-bin/a/t.cgi?bizideas
4) Figure out what type of business you want to run. Out of
the huge number of possibilities, select one that works well with
your skills and your interests. An excellent manual with 16 different
Internet 'business models' that you can copy is available at http://buildyourhomebiz.com/rd/senze.html
5) Do some market research. Is there a demand for the product
you plan to sell, and at the price at which you want to sell it?
After your (projected) expenses, will you be profitable?
6) Check out your competitors. How will you distinguish yourself
from them? Why should customers come to you instead of to them?
What are they doing right or wrong, and how can you improve upon
them?
7) Select a business name. Make sure you don't infringe upon
someone's trademark! You can research trademarks at http://www.marksonline.com/
. Consult with a qualified legal professional for more information.
8) Know the zoning regulations in your area. Make sure that
you are permitted to operate a business from your home. Some areas
may also place restrictions on the type of business that can be
operated from your home.
9) Find out what licenses, registration, or permits you need
to operate your home based business.
10) Research any additional regulations applicable to your product.
Find out if there are restrictions on producing it from your home.
For example, if you're a caterer, the authorities may not allow
you to prepare food in your home if you have pets running around!
11) Select a business structure, such as sole proprietorship,
partnership, or corporation. Again, you may want to consult with
a qualified professional to determine what's best for your specific
situation.
12) Assess your financial situation. Do you have enough to finance
a business startup? How will you handle emergencies? Don't forget
about marketing expenses -- the success of your business will
depend in large part on how well you market it.
13) Secure additional funds, if necessary. Loans, lines of credit,
grants, savings, and employment income are some ways that entrepreneurs
can finance their businesses. The US Small Business Administration
has a useful list: http://www.sba.gov/starting/indexspecial.html
14) Prepare a business plan to help you define your goals and
stay focused. Again, the US SBA offers help at http://www.sba.gov/starting/indexbusplans.html
15) Investigate the costs associated with purchasing the necessary
equipment, materials, and supplies. Contact several suppliers
to compare quality, prices, and service.
16) Talk to your local tax office. Ask for any relevant information
on how your home business will affect your tax situation.
17) Consider purchasing additional insurance to cover your business
assets.
18) Set up your home office. Establish rules and 'office hours',
when customers can generally expect to reach you. Consider setting
aside a room specifically for your office space.
19) Talk to your bank about a business account, to keep your
business and personal income and expenses separate.
20) Consult with professionals. Depending on your situation,
you may need to use the services of lawyers, accountants or bookkeepers,
insurance agents or brokers, and others.
For additional information, read the US Small Business Administration's
'Small Business Startup Kit' available at http://www.sba.gov/starting/indexstartup.html
.
_____
Angela is the editor of Online Business Basics, a practical
guide to building a business on a beginner's budget. It's a proven
hit with beginners, for the down-to-earth style and loads of instantly
useable tips! For details, visit http://onlinebusinessbasics.com/article.html
OR request a series of 10 free reports to get you started: http://onlinebusinessbasics.com/freereports.html
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20-Point
Checklist for New Home Businesses
