Activities necessary for a successful home based business

Live the American dream of having a business, but avoiding the high overhead and start-up costs of a brick and mortar location. If the thought of working from home is attractive, but you do not know where to start, here is a procedural article.

Activity 1

Choose what portion of the home to use, choose an area distant from family activity. The ideal place is a separate room (or perhaps the garage), but any area will do, if it can provide space for all the business supplies and equipment, and furnish sufficient work space for desks, tables, or counters.

Activity 2

Decide how much time you will be able to spend on the business. many individuals begin a home business on a part-time basis while raising children or employed outside the home. Other people start full-time when family and finances allow. However you start out, work out how may hours per week you can commit to the business make a weekly chart of your activities, examine it, and ascertain where the business fits. Do not assume you have time and determine later you don’t.

Activity 3

Determine the type of business. Create a list of things you like to do, your work and voluntary experience, and items you own that can be used in a business. Look over this line-up, and using ideas from it, list potential businesses to begin. Eliminate any business that Is not appealing or does not fill a need individuals have.

Activity 4

Decide a legal form for your business. the three basic legal forms for business are, sole proprietorship, partnership, and corporation. The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one person. It is the oldest form of business, the easiest to start, and the least complicated to dissolve.

Here are some of the advantages of this business form:

1. You own all the profits

2. Your business is uncomplicated and inexpensive to organize. You don’t need any government approval, though you may be required to carry a city, state or county license. Your only other responsibility is to notify the IRS for the purposes of sales tax.

3. You are the boss

4. You enjoy certain tax savings. You must pay usual individual taxes on your income, property, and payroll, but these are not imposed as special taxes, as with a corporation. You’ll also have to pay sales tax which you have received from your purchasers.

5. Larger personal incentive and satisfaction. Because you have your investment to lose if your business is not successful, you should be more willing to put time, thought, and energy into the business. And when your business is thriving, you enjoy maximum sense of achievement since you know its success was dependent upon your decisiveness’s about your management ability exclusively.

 

Activity 5

Decide where the money will come from there are three ways to finance start-up costs: use your personal money, get a loan, or find investors. If possible, it is advisable to start small, use your savings, and not worry about repaying a debt. Also keep in mind that because you are a home-based, chances of qualifying for a loan or finding investors are small until the success of your idea is established.

Activity 6

Accumulate information spend a few weeks searching home-based businesses. A library or bookstore can provide numerous books on business fundamentals, and on the particular type of business that interest you.

Activity 7

check on zoning limitations determine how your property is zoned, the call city hall and ask what regulations apply to home businesses in that zone. Also, if you rent or live in a condo, check the lease or homeowner’s association rules to be certain a home business is allowed. Generally, if you do not bother your neighbors with excessive noise, smells, and traffic, you’ll not be discouraged from running a business at home. The neighbors might not even be aware of the business, but it is essential to know exactly what you can and can’t do before you start. This is important should any problems or questions come up later.

Activity 8

pick a business name and register it if the business you pick out is different from your name, file an assumed (or fictitious) name certificate with the county. You’re notified if a different business already has that name, so you’ll be able to select a new one. Do this before investing in expensive stationery and brochures. It costs only a few bucks to register, and it protects the business name from being used by somebody else in the county.

Activity 9

Compose a business plan a good business plan clarifies your ideas and establishes a plan of action. A good business plan should include a description of what you are selling, your background and qualifications, who the potential customers are and wherever they can be found, what is required to establish the business, how you plan to promote, and how much money is needed for start-up costs.

Activity 10

Acquire an identifying number if you’re the sole proprietor of the business and have no employees, you may either use your social security number or an employer identification number (ein) as the business number on official forms. If you have employees, or the business is set up as a partnership or corporation, you must get an ein. To do this, make out irs form ss-4 (application for employer identification number) and file it with the nearest irs center.

Activity 11

Get a sales tax permit if the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect gross sales tax. If you do, they will send you the necessary information and forms to complete. You also use this tax number when you purchase items for resale.

Activity 12

Get licenses & permits it is very crucial not to miss any necessary license or permit. For instance, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food. Call city hall to determine what is required for your particular business. Additionally the chamber of commerce provides information on city, county and state licenses and permits.

Activity 13

select business cards, stationery, brochures spend time on the color, design and paper for these items. They make a distinct impression-good or bad- on the individuals who receive them. Whenever you are not certain what is most appropriate and effective, consult a graphics designer or a creative printer whose work you like.

Activity 14

open a business checking account call several banks to ascertain what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service fee. Likewise ask about merchant credit card acceptance if you plan to offer this convenience to your customers, although expensive it may be preferable to pay-pal. Bank fees can be substantial, so shop around for the best deal. If your personal checking account is with a credit union, see if they can also provide a separate business account. When you open your account, you may need to show the assumed name certificate and business license. Lastly, investigate obtaining a credit card in the business’s name. If this is not doable, set aside a personal credit card to use for business expenses.

Activity 15

set up an accounting systems, put together a simple and effective accounting system Quickbooks offers a free downloadable http://quickbooks.intuit.com/product/accounting-software/free-accounting-software.jsp, version of there software. For each month, set up columnar sheets for income and expenses. Use a pocket divider for each month’s receipts, bank statement, deposit tickets, and canceled checks. In addition, an automobile log for business mileage, and filing system for correspondence, invoices, supplier catalogs, customer records, etc. Are two other valuable tools.

Activity 16

check IRS requirements if you abide by some basic IRS guidelines, you will be able to deduct a percentage of normal home expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc.) as a business expense. Also become familiar with these IRS forms: schedule se (compensation of social security self-employment tax) and schedule 1040 es (estimated tax for individuals). Depending on circumstances, you may have to file them.

Activity 17

Equip the business – Make a listing of everything required to start the business, but before you buy anything, look around your home for things you already own that are usable. When you’re ready to start buying, check the classified ads and garage/yard sales. Both are good, inexpensive sources for furniture, fax machines, computers, VOIP equipment, etc. Only acuire what is utterly essential for start-up, and wait until the business is off the ground to acquire the extras.

Activity 18

Determine telephone requirements call the telephone company to find out the cost of a business phone in your area. If you cannot afford an additional line for business, investigate the telephone company’s regulations on using your personal phone in a business. It may be feasible to do this if you follow certain guidelines. You can also use a cell phone for all your business needs. Finally, consider the benefits of voice-mail to catch calls when you are unable to answer.

Activity 19

check out the post office & ups using a post office box as the business address down plays the fact you are home-based. It also prevents customers from coming by at all hours. While checking into box rental, ask for information on the various postal rates, particularly bulk rate, if you plan to do large or specialized mailings. If you mail many packages, check out united parcel service (ups), as it is less expensive than the post office.

Activity 20

purchase the necessary insurance – Check with your homeowners insurance agent about a rider for your existing insurance policy or the need for a separate business policy. Also make sure you have sufficient personal and product liability coverage. Get quotes form multiple companies, as each company has different rules and rates regarding home businesses, join an association and participate in their group plan.

Activity 21

organize the house & yourself to have more time for business, organize and simplify family routines. Start by holding a garage sale to do away with unnecessary possessions. Next, have a family group discussion and divide family duties, making sure each person does his/her part. The, set up a planning notebook to keep track of appointments, things to do, calls to make, errands to run, shopping, and so forth. Lastly, set up a work schedule so you won’t get sidetracked by TV, neighbor’s visits, snacking, and phone calls. Creating and running a home business is a fantastic and satisfying challenge. The satisfaction isn’t only in the money earned, but in doing what makes you happy.

© 2009, Work At Home Covert Opps!. All rights reserved.

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