Plan Before Starting Your Home Based Business

Operating your own home-based business is one of the most satisfying ways to work. That is, provided that you do your research ahead of time and lay the proper foundation. Most people think that starting a home-based business is convenient and easy. They're right in that it is usually convenient. But as for easy? It couldn't be farther from the truth. Starting up a home business takes a lot of work, but if you do your homework you can navigate around many of the common pitfalls of beginning a home business of your own.

First things first. What product or service are you going to offer that your target audience can't live with out? This is important folks, because no matter how much you love a widget, if your customer thinks they can easily live without a widget, your business is going to be slow, maybe non-existent. You have to have a product or service that can sell.

Secondly, from where in your home do you expect to run your business? It will take space to operate a business, so using the living room as your home office means that you're essentially kicking your family out of it. Try to estimate the amount of space you'll need, and make sure you settle your business in a location that's good for you, your family, and your clients. This is probably an area where you'll need to consult a legal expert to fill you in on tax laws. How much space can you deduct for business use? Your local zoning board will have information on the permits you need to make such deductions.

Now you have your permits and you know what you are going to sell, next make sure you know what you must charge to make a profit. Many home based business owners make the mistake of thinking they don't have much overhead so they price the product on the low side. Make a list of everything from a percentage of the mortgage payment and taxes to the cost of the hour you take to clean the office once every few weeks. Figure in utilities (don't forget the extra phone, fax and internet services you will need), furnishings, office supplies and equipment, even the cost of maintaining your drive way if clients will park there. Usually, the over head in a home based business is higher than you think. Price accordingly.

OK, now you are set for business, what are your hours going to be? You may think working at home means you can work any hours, but in fact it's not true. How can you work late at night if your average customer does business from 9 to 5? You can't. Your business hours must be convenient for your customers and, if you really want to be successful, your hours should be the same every week. Your customers want to feel confident that they can reach you when they need to. It's okay to switch on the answering machine while you are out to lunch (OK, Not out, but in the kitchen), it's probably not going to increase business if you switch on the answering machine while you go work in the yard because business is slow.

Now, tell me how your family is going to respect your business hours and not bother you while you work. Good Luck. I know it can be done, but you will have to communicate well with your family about what is acceptable and what is not. Some home business owners have a suite with a separate entrance that is not connected to the inside of the house. This works well, the family has to go outside and knock on the door to speak with the business owner during work hours. However you achieve it, the understanding must be clear that when you are working, you are working.

Last, you need to look into the future and plan for the time when your expanding business grows larger than your current home office. Will you hire an assistant to help you do administrative work? How do you plan to accommodate growth? Where is a good location to move to when you need more space and how will you handle the transition? Keep those thoughts in the back of your mind, because eventually they will become a reality. It's okay if that part of your plan is a little fuzzy right now - you can work out all the details when the day arrives.

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