Practical Advice For Starting A Home-Based Business

If you are self-motivated, self-disciplined, good at managing your finances, and most importantly, tired of working in a job that doesn’t give you the freedom to live your life the way you want, then you’re a good candidate for setting up a home office, providing a product or service, and becoming self-employed.

More and more people are quitting their full-time, salaried jobs to start their own business than at any time in history. According to a 2002 report by the Bureau of Labor Statistics, approximately 27 million Americans are full or part-time self-employed, and because of corporate downsizing, a desire for greater job satisfaction, the opportunities offered on the Internet, concerns about raising children, that number is increasing by the month.

However, before you quit your job and decide to work out of your home, you would be wise to consider a number of factors and develop a business plan with short and long term goals and strategies.

The first thing you have to do is decide what type of business you want to start. The easiest way to do this is to develop a list a questions that will help you discover what skills, values, strengths, and weaknesses you possess. For example:

• Can you provide the same service out of your home that you’re currently doing at your full-time, salaried job?

• What is your dream job? Could you perform your dream job out of your home?

• What kind of work do you believe is fun and not stressful?

• Do you have a hobby that can be turned into a well-paying job?

The answers to these questions will help lead you in the direction of developing a home-based business.

In addition to self-evaluation, there are many other valuable resources to help you develop and establish a home-based business. Visit a bookstore or explore your local library for informative literature on self-employment. The Internet is a great place to conduct your research on home based businesses.

When you conduct your research into starting a home-based business you’ll run into many get-rich quick schemes, especially on the Internet. Don’t get into them because they don’t work, you’ll just end up losing your money

Next you’ll need to develop a financial plan. This part of your strategy is very important and should be given the utmost consideration. Consider the following two factors:

First, calculate how much it would cost to run your business by taking these elements into account:

• Overhead: How much rent will you need to pay for your office space? If you’re working from home, how much will you need to spend on new furniture and equipment?

• Computer: A computer is a must today for any type of business. Will you have to upgrade your old computer or buy a new one? What specific software will you need?

• Internet: You need to have Internet access. Will you have high speed, dial-up, DSL, Broadband or cable.

• Phone: Voice mail and a second line are good ideas to create a professional atmosphere.

• Business license fees: What kind of registration does your city and state require?

• Marketing costs: How much will it cost to print an advertising brochure and what are the postage costs? What other kinds of marketing can you do and what will it cost?

• Web site: Every business needs to have a web site. What will it cost to host your site, design it and market it?

• Inventory: If you are selling a product, how much of it will you keep in stock?

• Self-employment tax: How much tax will you be required to pay? What kind of tax breaks will you be entitled to?

• Independent retirement account: When and how much will you start saving for your retirement?

• P.O. Box: Like a second telephone line, a P.O. Box is a good way of making your business look more professional.

Second, you need to calculate how much revenue you can generate from your business. How you plan to charge for your product or service is entirely up to you. There are two basic ways; an hourly rate or a set fee per each unit sold or job performed.

If you’re not sure how to charge for your product or service you need to do some market research. Here are a few ways you can conduct your own effect market research:

• If you know who your target market will be, you can survey those people or companies and see how much they would pay for your product or service.

• You can explore what your competitors are charging and how they are charging.

• You can test market your product or service to see what the best price is and the best way to charge.

One issue you must consider before starting a home-based business is whether you plan on having clients come to your home office. If you rent your home, you first should review your lease or talk with your landlord, as some leases have clauses that make it illegal to operate a business out of a rental unit. If your landlord doesn’t permit you to bring clients into your apartment, there are many alternatives. For example:

• The public library, some of which have private meeting rooms.

• The client’s office, which should have a meeting room.

• Some retail stores and shopping malls rent meeting rooms for a nominal charge.

• A local coffee shop makes for a nice, informal environment.

It would be to your advantage to talk with a Certified Public Accountant and learn about the tax benefits of working at home. These task benefits may vary depending on the type of product or service you sell. Also, the amount of time you work in your home compared to working in a client’s office will have an effect on the amount you’ll be able to deduct from your rent or your mortgage.

You can accomplish your dream of being self-employed and working from your home. It’s a big job, but it’s not impossible if you take the time to research and plan your path carefully. Good luck!

Copyright©2007 by Joe Love and JLM & Associates, Inc. All rights reserved worldwide

Article Source: http://www.content.onlypunjab.com

Joe Love draws on his 25 years of experience helping both individuals and companies build their businesses, increase profits, and success coaching programs. He is the founder and CEO of JLM & Associates, a consulting and training organization, specializing in career coach training. Through his seminars and lectures, Joe Love addresses thousands of men and women each year, including the executives and staffs of many businesses around the world, on the subjects of leadership, achievement, goals, strategic business planning, and marketing. Joe is the author of three books, Starting Your Own Business, Finding Your Purpose In Life, and The Guerrilla Marketing Workbook.

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