Basics of Starting a Home Based
Copyright © 2005 Paul Jesse
There are many advantages to starting your own home based business. You
can become independent or just earn some extra supplemental income. Your
home business will create new tax deductions which you can take
advantage of thereby reducing your taxable income. Your own business can
also create a sense of purpose and accomplishment for having created
something of your own.
It really is fairly easy to get started and there are an endless number
of resources out there to guide you through the process.
1. Decide what type of business interests you. This is the most
difficult part of the process as you do not want to jump into anything
too quickly. Consider your interests and what things you are good at.
You may decide on a service that you can provide which people will pay
for. This might be consulting, child care, photography, or house
cleaning. Or you might be interested in a retail sales business. The
Internet now makes it possible for just about anyone to start an online
retail store and the marketplace is global. By using the internet you
can compete on a level playing field with huge companies. Are you a
collector? Maybe you would enjoy selling certain collectible items.
2. Develop a business plan. This does not have to be complicated.
Simply write down your plan for making your business work. Determine
what you will sell, how you will market your business, who your
potential customers will be, etc.
3. Decide on the name of your business. If you are going to name
your business something other than your own legal name then you wil need
to file a fictitious business name statement with the local Recorders
Office in your county.
4. Check with your county and state for local requirements for home
based businesses. If you will be selling merchandise then you will
need to contact the department of revenue for your state to obtain a
Retail Merchant Certificate or Sales Tax ID number. This will allow you
to collect sales tax on merchandise sold.
5. Set up a separate bank account for the business. This will
help you keep track of business income and expenses.
6. Set aside a place in your home where you will work on your
business. If you want to be successful you must treat your business
like a business.
7. Work, Work , Work.
Starting a home business can be an exciting venture. It can also be a
lot of work. Don't believe anyone who tells you that it is easy. When
you are researching ideas for your home based business you will come
across a lot of opportunities for sale. Some of these will contain
excellent information, while others will be a rip off. Consider these
offers carefully and remember, if it sounds to good to be true, it
Paul Jesse is a retired government employee and the author of several
articles on working from home. For articles and resources on starting a
home based internet business, visit his site at