FAT-WHYME

21 Steps to Success Principal

Fifty million home-based businesses will be operational in 1997, according to Link Resource's National Work-Study at home. Across the country, people who want more control over their lives are starting home businesses

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In New Orleans, home based cajun Rick Hart Cargo ships seafood across the country. In Palatine, Illinois, Stephaine Heavey works from home designing and selling original patterns for cloth dolls. And in Dallas, Lisa McElya published the Dallas Party and Event Planners Guide to the first floor of two story home.

These three people are living a new dream American to own a business, but avoiding high overhead and initial costs of a commercial location. If the idea of working from home is appealing, but do not know where First, here is a step-by-step.

STEP # 1 DECIDE WHAT PART OF THE HOUSE OF USE

Select an area away from family activity. The ideal space is a separate room (or maybe the garage), but any area is not, if you can keep all supplies and business equipment, and also provide sufficient work space for desks, tables or desks.

STEP # 2 to determine how long you can spend on ENTERPRISE

Many people start a home business on a part-time while raising children or working outside the home. Others start full-time when family and finances allow. But start, find out how may hours a week to go into business to make a weekly chart of your activities, examine it and determine where it fits the business. Do not assume you have time and find out later that they do not.

STEP 3 CHOOSE THE TYPE OF BUSINESS

Make a list of things you enjoy, their work and volunteer experience, and items of property that can be used in a business. Look over the training companies, and the use of ideas from him, be ready to go. Eliminate any business that is not attractive or not fill a need people have.

For ideas on different types of businesses, see at the end of this article. Other ideas can be found in the source material listed at the end of this article.

STEP # 4 CHOOSE A LEGAL FORM

The three basic legal forms are sole proprietorship, partnership, and corporation. The most common is the sole proprietor. As its name implies, a sole proprietorship is owned by an individual. It is the oldest form of business, the easiest to start, and the least complicated to dissolve. Here are some of the advantages of this form of business:

1. You own all the benefits
2. Your business is easy and cheap to organize. You do not need any government approval, although it may be necessary to lead a city, state or county license. His only other requirement to notify the Internal Revenue Service (IRS) for the purpose of sales tax.
3. You're the boss
4. You enjoy certain tax savings. You must pay regular individual taxes on your income, assets, and payroll, but these are not perceived as special taxes, as a corporation. Also have to pay sales tax has received from its customers.
5. Greater personal incentive and satisfaction. Since you have to lose your investment if your business does not succeed, you must be more willing to invest time, thought and energy into the business. And when your business is successful, you enjoy maximum sense of accomplishment because you know your success depends on your decisions about your management capacity alone.

For more information on this and other forms of business, to send U.S. Small Business Administration (SBA) MP25 publication. Selecting the legal structure for your business (50 cents). It describes the advantages and disadvantages of each legal type of structure. If after reading it, you remains unclear how the company should take, consult an attorney.

STEP # 5 to determine where the money will come from

There are three ways to finance the initial costs: use your own money, get a loan, or find investors. If possible, it is best to start slowly, using their savings, not worry about paying a debt. Also note that since he is a home, chances to qualify for a loan or finding investors are slim until the success of your idea is proven.

STEP # 6 COLLECTION OF INFORMATION

Spend a couple of weeks researching home-based businesses. A library or bookstore can provide numerous books on business basics, and the specific type of business that interests you. Homemade Money by Barbara Brabee (see sources) is an excellent book to start.

If you are considering a computer business, contact the Association of Electronics; Cottagers, PO Box 1738, Davis, CA 95617-1738. To stay informed of what's happening in the world of home business, national contact Principal Report, PO Box 2137, Naperville, IL 60566, for subscription information and Mothers Home Business Network, PO Box 423, East Meadow, NY 11554 (Send SASE for free information.)

STEP # 7 CHECK ON AREAS RESTRICTIONS

Find out how your property is zoned, the call City Hall and ask what regulations apply to home businesses in that area. Also, if you rent or live in a condominium, check the lease or homeowner's association rules to make sure a home business is allowed.

In general, if not to disturb neighbors with excessive noise, odors, and traffic will not be deterred from running a home business. The neighbors can not even be aware of the company, but it is necessary to know exactly what you can and can not do before. It is important that any problems or questions later.

STEP # 8 pick a name BUSINESS AND REGISTER IT

If the business you choose is different from your name, file an assumed (or fictitious) name certificate with the county. You are notified if another company that already has the name, so you can select a new one.

Do this before investing in expensive stationery and brochures. It only costs a few dollars record, and protects the company name being used by another person in the county.

STEP # 9 WRITE A BUSINESS PLAN

A good business plan clarifies your ideas and establishes a plan of action. A good business plan should include a description of your what you're selling, training and retraining so that customers potentials are and where you can find what you need to build the business, how you will promote, and how much money is needed for initial expenses.

SBA Publication # M925, The Business Plan Home Business ($ 1) is useful.

STEP # 10 OBTAIN IDENTIFICATION NUMBER

If you are the sole owner of the company and have no employees, you can use your Social Security number or employee identification number (EIN) as the number Business on official forms. If you have employees, or the company is set up as a partnership or corporation must obtain an EIN. To do this, complete IRS Form SS-4 (Application for Employer Identification Number) and file it with the nearest IRS Center.

STEP # 11 OBTAIN A SALES TAX PERMIT

If the product or service you sell is taxable, you need a permit from the state sales tax. Call the local tax office, explain the type of business you have and what sells, and ask if you have to collect sales tax. If it does, it will send the necessary information and forms to complete. You can also use this number tax identification when purchasing items for resale.

STEP # 12 OBTAIN LICENSES and PERMITS

It is very important not to overlook any license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food.

Call City Hall to find out what you need for your particular business. In addition, the Chamber of Commerce provide information on city, county and state licenses and permits.

STEP # 13 SELECT BUSINESS CARDS, stationery, brochures

Spend time in color, design and the role of these elements. They make a definite impression-good or bad, about the people who receive them. If you are not sure what is the most appropriate and effective, consult a graphic designer or printer whose work as creative.

STEP # 14 OPEN A BUSINESS CHECKING ACCOUNT

Call several banks to find out what services are offered, and what minimum balance, if any, must be maintained to avoid paying a service charge. Also ask about credit card if you plan to offer this benefit to their customers. Bank charges can be significant, so shop around for the best deal.

If your personal checking account with a credit union to see if they can provide a separate business account. when you open your account, you may need to show the certificate of assumed name and commercial license.

Finally, investigate obtaining a credit card company name. If this is not possible, set aside a credit card used for personal business expenses.

STEP # 15 SET RECORD KEEPING SYSTEMS

Build a simple accounting system and effectively with a 8 1 / 2 x 11 "three-ring binder, columnar pad sheets and twelve pocket dividers from the office supply store. For each month, set up sheets and income columns expenses. Use a pocket divider for each month's receipts, bank statement, deposit slips and canceled checks.

In addition, a car registration business mileage, and filing system for correspondence, invoices, supplier catalogs, client records, etc., two useful tools.

To more information about record keeping, see IRS publication # 583, information for business taxpayers.

STEP # 16 of IRS CONTROL REQUIREMENTS

If you follow the basic guidelines of the IRS, you can deduct a percentage of normal household expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc) as a business expense. see table accompanying this article and for more detailed information, publication IRS # 587, Business use of the home.

Also familiar with these forms from IRS Schedule SE (compensation of Social Security, Self-Employment Tax) and Schedule 1040 ES (Estimated Tax for Individuals). Depending on the circumstances, you may need to submit them.

STEP # 17 TEAM OF THE BUSINESS

Make a list of everything needed to start the business, but before you buy anything, look around the house things that you have to use.

When ready to start shopping, check the classified ads and garage sales. Both are good sources for inexpensive office furniture, typewriters, computers, answering machines machines, etc, but only what is absolutely necessary for start-up, and wait until the deal is off the ground to get the extras.

STEP # 18 DECIDE ON TELEPHONE REQUIREMENTS

Call the phone company to find out the cost of your company in your area. If you can not afford a separate business line, investigate the telephone company's regulations on the use of personal phone company. It may be possible do this if you follow the safety instructions. Keep a record of long distance companies because they are a deductible expense. Finally, consider the benefits an answering machine to catch calls when you are away.

STEP # 19 CHECK OUT THE POST OFFICE and UPS

The use of a section postal and business address down plays the fact that they are home. It also prevents customers dropping in at all hours.

Looking for rental of the boxes, ask about different postal rates, particularly bulk rate, if you plan to ship large or specialized. If you mail many packages, check out United Parcel Service (UPS), as it is less expensive than the Post Office.

STEP # 20 BUY INSURANCE IS REQUIRED

Ask your insurance agent ownership of a pilot your existing policy or the need for an independent trade policy. Also make sure you have adequate coverage of personal responsibility and product. Shop around, as each company has different rules regarding home businesses

STEP # 21 ORGANIZE THE HOUSE & YOURSELF

To allow more time for business, organize and simplify household routines. Start by holding a garage sale to get rid of unnecessary possessions. Then have a family conference and divide household duties, making sure each person does their part. The set up a planning notebook keep track of appointments, things to do, calls to make, errands to run, shopping, etc. Finally, set a work schedule that does not deviate by TV, neighbor's visits, snacks and phone calls.

Creating and running a home business is a wonderful and rewarding challenge. Satisfaction is not only earned money, but to do what makes you happy.

About the Author

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