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Starting a Home Business
When I started my first home business, I didn’t have any idea what was really required to get from an idea to having a working business. I really wish there had been someone who could have at least walked me through the basics.
To make it easier for you I thought a check list might at least keep you on target for your business startup. This check list is for the non-online business go to Internet Business Check List if you are interested in an online business.
How to Start a Home Business
Check List
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Decide what type of life style you want!
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Find a hot target market and research products that you want to sell.
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Do research on your hot target market. – Who are your competitors, pricing, vendors etc.
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Create a Business Plan - Set goals for your new business.
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Establish your product distribution method – drop ship, stock inventory, and or affiliate programs.
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Create a business name and entity.
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Set up a business bank account.
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Get a Business State Sales tax id.
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Get a product payment system in place.
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Market your products to your hot target market
Office Setup
Many people ask me why I put setting up your home office on the list at all. I did it because to me, that was a mental attitude and statement that I was ready to get to work. Make your home business office as friendly and work efficient as possible.
Hot Target Market
Find a hot target market and research products that may excite you and that have a high profitability margin. The key words here are “Find a Hot Target Market”. The reason I say this is that you may be excited about a type of product but the market isn’t growing or is way too saturated to make a profit. Research is the key to finding a hot market and deciding on the product.
Inventory?
Once you decided on your product you will want to sell, you will need to decide on how to handle inventory. Should I drop ship or stock inventory or run an affiliate program? What about all three?
Business Goals
Having an idea of the marketplace, products and method of inventory, you now can start to form your home business goals and model. Can your product be on the internet, do you want to sell on the internet as well? Check out my internet business info.
What’s In a Name?
You will need to create your home business name and entity. Many people create a business name without any regards to their product. Sometimes that is appropriate and sometimes not. What message do you want your business to convey? Will having your name in the title be a benefit or not? Would it be better to put your product into the name? Think seriously about this. Check my articleIs Business Image Important?
Type of Business
In regards to entity, I am talking about an S Corporation, C Corporation, LLC or Doing Business As (DBA) also know as fictitious name. This is a serious decision because it will depend on how you are taxed, how the money will flow to you and many other legal issues. Check with a qualified business tax accountant and lawyer. You want to get it right the first time! Read my article on Start a Corporation for more information.
Once you have the business name and company setup, you are ready to get a business account with the bank. It is really exciting to get your first business bank account. You are now officially a business!
Sales Tax Certificate
If you are going to be selling products retail, you will need to have a State Sales Tax number and certificate. It is a good idea to have it even if you don’t believe you will be selling in your home state. Many sales tax laws are changing and you will need this certificate sent to every vendor you will be doing business with.
Receipt of Payments
When accepting payments for your product and or service, there has to be a decision on what payment method you are going to use. Do you want to accept Visa, MasterCard, American Express and Discover? If so you will need a merchant account. There are many quality accounts out there. Check rates and commitment levels very closely so that you don’t get locked into unacceptable monthly payments. See my article on Merchant Accounts - Accepting Online Payments for more information.
