If you are feeling frustrated by working for a boss and feel the time has come to bite the bullet and live your dream you may be considering starting a home based business. It does require a bit of elbow grease but in the long run the relative freedom of making your own decisions on your own time and being your own boss will far exceed any of the slog of setting things up. Deciding to set up a home based business may seem a little daunting at first but all it takes is some planning and you will be on your way to a fantastic new career in the comfort and privacy of your own home.

It is a unique kind of freedom but you will need to be focused on what you want and how you are going to get there and it does help to have a solid plan so here are some questions you need to ask yourself before you begin:

What Do You Want to Do?

This is probably easier said than done. Most of us are interested in so many things and when faced with the idea that the choice really is yours and yours alone a form of ‘decision paralyses may set in. Relax and ask yourself: what is it that you can do really well? What is your true passion? Do you really want this to work and do you believe you can do it?

Your answers will narrow it down to a few options. Next, ask yourself if you would do either of your choices for free? The answer is, well. ‘THE ANSWER’ to your home based business strategy, so to speak!

How Do You Get Your Home Business Organized?

Yes, you DO need to get organized. What equipment do you need to carry out this career choice? It may be as simple as a desk, chair, telephone and computer or as complex as small machinery like a printing press or sewing equipment. Whatever you need to get started, try not to lend money to buy it. The idea may not take off immediately or at all and you will need to repay your loans either way. Start off small and work your way to success debt free.

If you need equipment for your home business that you simply can’t afford, you may want to apply for a small business loan from the Small Business Administration. Writing down a list of your needs and the cost to obtain them will form the basis of a business plan. A good home based business plan will smooth the way to obtaining funding and help you to feel more in control too.

Do You Know Your Home Business Market?

What do you have to offer your prospective business clients? Decide what it is you want to provide your clients with as a solution to their problems. Without this your product or service won’t earn you a profit.

Decide who your clients will be. Will you target housewives, business professionals or students, for example? Don’t try to sell to everybody. Choose your client base relative to your service and expertise.

Where Will You Conduct Business?

Will you work ‘virtually’ (online) or conduct your service ‘face to face’. These days it is rare to find a business that isn’t making use of the World Wide Web to conduct business. You may choose to set up your business in your home or convert a garage or tool shed.

Either way, you will need to be comfortable so spend some time planning your work space. A home business must be a professional environment whether or not you ever see your clients.

What’s In a Home Business Name?

This starts with a company name and ends with a fabulous profit if you get it right. File a DBA form to get approval for your company’s name. It may be a good idea to do a trademark search to make sure the name you choose is not already in use.

Choose a good, descriptive title for yourself. This title should tell your customers what you do or sell and sound professional.

Even a home based business needs to be branded. Design a logo for your company incorporating your name or the name of your business. Use it on all your correspondence, brochures, packaging and business cards.

Choose a Legal Business Structure

Uncle Sam needs to know what you are doing as does your state government. This is important for business classification and tax purposes. This is divided into several categories:

1. Sole Proprietorship

Just you and you alone make up the business structure. In this case you only need to state your business name or DBA and won’t have to file any official paperwork. Do bear in mind that you are personally liable for any debts incurred and any obligations related to your home based business.

2. General/Limited Partnerships

Consist of two or more people who have not filed papers to become a Limited Liability Company or corporation.

3. Limited Liability Corporation

The paperwork may be filed with the state by one or more business owners. This type of agreement limits the personal liability associated with business practices. Not a bad amalgamation of partnership and corporate structures.

4. Corporation

Exactly the same as an LLC except for the more corporate issues like requirement of ownership and management meetings.

How to File the Paperwork

Most home based business structures require you to file forms like trade name and sales and use tax. If possible, try to take a ‘Home Office’ tax deduction. (Generally – utilities and square footage for your office space).

What Will You Charge for Your Service or Product?

In general your price should be high enough to result in a profit but not higher than the current market trends. It may seem obvious but many of us forget that we want our clients to buy our services based on its perceived VALUE not on price. Be reasonable but know how much you are worth.

How Will You Market Your Home Business?

No matter how good your product or service is you won’t sell it if nobody knows you’re out there. You simply MUST promote yourself and your home based business! Here’s how:

Stand Out

Competition is intense in the small business market so you need to give your customers a reason to choose you over somebody else. Your pitch needs to reassure your customers that YOU are the best person for the job.

Never base your pitch solely on price, sell your superior skills, product and specialist credentials. Anybody can beat a price but can they beat you? Always concentrate on offering your prospective clients a solution to a problem.

Network!

You need to build a good network of resources to find business and keep up a constant flow. Start with your local Chamber of Commerce and professional organizations in your field. Volunteer on committees and make business contacts constantly. Spread the word to friends and family – they may well be the link to your next business opportunity.

Build a Website

Do it yourself or hire a graphic designer or web design specialist to do it for you. Either way it needs to be as professional as possible. Then, promote your home based business via the search engines and your business stationery. Provide as much solid information as you can on your site and list referees and credentials.

Free Marketing

You can market yourself with no cash outlay by doing the following:
Write articles, press releases and case studies for your business. Publish them on your web site or send out a newsletter or offer them to a related e-zine.

Arrange presentations and other engagements in your town at the local chamber of commerce or other organizations that would be interested in your product or service.

Compile e-lists of your articles and those of experts and distribute them free of charge to subscribers. This is free advertsising for your home based business.

How Do You Manage Your Time?

Don’t waste it! Always set goals for your business and make a to-do list based on priorities. Now sub-prioritize the list! This way the most important issues are dealt with swiftly. Structure your list from ‘crucial’ items to items of ‘no importance’.

Use your ‘free’ time to continue your education in your chosen field. You never know everything and a home based business may be dependant on your skills and knowledge staying up-to-date. Read books, go to a conference or browse the web – any way you look at it YOU are your business and you need to be as skilled as possible to remain competitive.

The Last Word in Starting a Home Based Business

If you can maintain self-discipline and stay focused on the success of your company there is a good chance you will succeed with your home based business.

After the initial set up work you will be able to say ‘I did it’ and start to reap the rewards of being your own person in the business world so don’t be tempted to give in to frustration and indecision.

You can make a success of your home based business but you have to really want it!

Determination, hard work and commitment are words you need to learn and practice each and every day.

I wish you all the success you deserve.

Good Luck in your new home business!