Home Business Success in 22 Steps

INTRODUCTION

Fifty million home-based businesses will be operational, in 1997, according to Link Resource’s National Work-at-Home Study. Across the country, people who want more control over their lives (at home and at work) are starting home businesses.

In New Orleans, Louisiana, Rick Hart’s home based Cajun Cargo ships seafood nationwide. In Palatine, Illinois, Stephaine Heavey works from home designing and selling original patterns for cloth dolls. And in Dallas, Texas, Lisa McElya published the Dallas Party & Event Planners Guidebook from the entire first floor of her two-story home.

These three people are living the American dream of owning a new company and their own business, but without the burden and overhead cost of having a physical business location. Virtual or Internet businesses are ideal because their start-up cost or initial investment to get set-up tend to be much lower. For example and in general, online affiliate marketing businesses do not require anything more than an Internet connection and perhaps a website. If the idea of working from home is appealing to you, but you do not know where to start, then here is your step by step guide brought to you by CompuLinear Software’s iMarketing Group.

STEP #1 DECIDE WHAT PART OF THE HOUSE TO USE

Select an area away from family activity, noise, and distractions. The perfect space is a separate room (or perhaps the garage, basement, or attic). Almost any area will do if it can accommodate all of your business supplies and equipment; in addition, you will need to provide enough workspace for computer hardware, desks, tables, etc.

STEP #2 DETERMINE HOW MUCH TIME YOU CAN SPEND ON THE BUSINESS

Many people start a home-based business on a part-time basis while raising children or working outside their home. Others start fulltime when family and finances allow or have been forced to do so in light of the recent recession, massive layoffs, and corporate downsizing here in the United States. However you begin, you must have a plan first and foremost; you will need to figure out how may hours per week you can devote to your new business; and how much seed money you have for your budding business venture. This is where a business plan and a little later a marketing plan are required. Make a weekly chart (see Step #22) of your activities so that you can examine it to determine where your niche business fits into the grand scheme of the marketplace. Do not assume that you will have time to devote to your new business only to discover later on that you that do not. Any new business requires commitment of one’s time especially if you are the sole proprietor who dons many hats daily!

STEP #3 DECIDE ON THE TYPE OF BUSINESS

Make a list of things you like to do, your work and volunteer experience, your knowledge base about a specific subject, and items you own that can be used in a business (see Step #17). Examine your list carefully; using ideas from the list, note all potential businesses to start. Eliminate any business that does not appeal to you or fulfill a need many people have. If you are considering an Internet business, then use Search Engine Marketing and Keyword Research to help you decide on a possibly viable online business.

STEP #4 CHOOSE A LEGAL BUSINESS FORM OR ENTITY  

The three basic legal forms are sole proprietorship, partnership (including LLP), and corporation (including C, Sub Chapter S, and LLC). The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one individual. It is the oldest form of business, the easiest to form start, and the least complicated to dissolve. However, keep in mind that the sole proprietorship’s personal liability exposure is unlimited; your risk depends upon the nature of your business operations, environment, local economy, cost of goods, trends, and a few other factors. Here are some of the advantages of this business form (entity):

1. You own or keep all of the profits after expenses are paid.

2. Your business is easy and cheap to organize. You do not need any state or federal government formation requirements or approval, although you may be required to carry a city, state or county business and/or excise tax licenses. Your only other obligation is to notify the Internal revenue Service (IRS) for the purposes of sales tax.

3. You are the boss.

4. There are some tax savings and advantages. However, you must pay regular individual taxes on your income, property, and payroll, but these are not levied as special taxes as with a corporation. You will also have to pay sales tax which you have received from your customers’ purchases. Check with the IRS and/or a tax specialist regarding Internet sales and purchases outside of your state of business operation.