Start Home Based Business

Develop A Marketing Plans

Written business plan

A written plan allows periodical review and flexibility to change when new information becomes available as you gain experience and your home based business grows. Most homebased business owners start a business based on experience gained from past employers. This experience provides an advantage of knowing challenges to be met and overcome, equipment needs, the competition and a network of contacts.

Research

If you don’t have knowledge, research. SCORE has an excellent Web site offering a great deal of information on start-up aspects. Individual help is available from SCORE volunteers. Templates of business plans are also available. As you read through these, you can get a grasp of how detailed your plan should be.

Financials

Should include available funds for the first six months, budgeting, projected earnings and what you plan to pay yourself and invest back into the business.

Marketing

Forecast costs for business cards, letterhead, envelopes, graphics logo design and marketing communications--everything produced that markets or advertises your business on paper, broadcast or on your Web site, networking costs, public relations, trade association memberships and trade media subscriptions.

Determine Operation Costs

Web site

• Monthly costs
• Initial investment
• Advertising
• Broadband provider.

Telecommunications

• Phones: office, cell, 2nd phone line dedicated to your business
• DSL provider
• Voice mail
• Fax
• Answering machine

Computer

• Capable model to handle software and operating system updates or changes
• Purchased (not pirated) multi-function software packages like MS Office
• Virus and spyware tools
• Backup power supplies
• Laser or inkjet printer, paper, toner, inkjet cartridges
• Scanner
• Power strips.

Data backup

• Data disks, CDs and off-site storage locations for these
• 3rd party data backup systems.

Office:

• Utilities
• Furniture: chair(s), desk, bookshelves
• Lighting
• File cabinets
• Copier
• Storage file boxes
• Office supplies
• Visitor waiting area and direct path free of kid or pet interference

Automobile:

• Licensing
• Insurance
• Fuel
• Maintenance: tires, repair
• IRS operating logs.

House:

• Landscaping
• Insurance: homeowner’s liability, theft and business coverage if you plan on having customers or associates visit your home office

Security:

• Window locks
• Dead bolt for your office door
• Use the police department’s portable engraving tool to mark all your equipment with a unique ID number that the PD can use to return recovered stolen items
• Window coverings that can disguise your office from passersby on the street at night
• Install a security system.

Start a Home Based Business: Capital Needed

Have six months of operating capital

covering all expenses with an additional 10% added to cover unknowns.

Open a business bank account

Start a home based business with a bank account separate from your personal account. This makes it easier to pay and record operating expenses and do quarterly and year-end accounting. The IRS will look more favorably upon your businesses if you have a separate account and be less likely to classify your business as a hobby.

Invest in business accounting software

• Quicken
• MS works
• MS Excel
• Learn how to use a spreadsheet: consult with your accountant and see how he would like his data presented and then set up your spreadsheet to reflect these specifications. It should reduce your costs and reduce the stress during the start of a home based business.

Select an accountant

Make sure that your choice is a professional whose main business focus is the small home based business owner and not a tax school graduate willingly to do it on the side.