If you are finding the job search to be rather fruitless or have been thinking about leaving the corporate workforce for a personal venture, do you have a good plan in place to start a home business?
As more Americans find themselves out of the workforce, seeking ways to make money and keep themselves afloat, it should not come as a surprise that many are considering starting a business out of their home.
Where to Begin?
First and foremost, you should have a solid business plan in place (even if you do not need major funding through banks and/or investors) so that you put yourself in the best possible situation to succeed. Starting a home business can cost one anywhere from a few hundred dollars to several thousand dollars, so be prepared for some start-up expenses.
Speaking of finances, in the event you will be seeking financial support to get things off the ground, a small business plan is by all means the route to go, especially if you need to work through an approved lender.
A brief synopsis of what your business plan should address includes:
- Talking to your reasoning for beginning the business in the first place, how your business will meet the needs of clients, and what product and/or service you will offer;
- Doing a detailed market analysis in order to determine who will be purchasing your product or service, including the gender and age of those you are targeting for business;
- Getting a good idea of who your competition will be in the market so that you know what you will be facing. How will you outdo your new competitors in order to keep your business afloat and growing? Remember, you need to be thinking about how you can set yourself apart from the competition;
- Knowing what your operational structure will be, including what your building needs will be, potential number of employees, necessary office equipment, along with start-up inventory requirements;
- Covering any legal needs so that you are not left with some nasty surprises. Even the smallest of home businesses must make sure they are legally in line with local zoning ordinances. Make sure you know what if any licenses you require to do business, acquire a state sales tax certificate in order to collect and pay state sales tax in the event you are selling goods. Also make sure you have the proper business and liability insurance in place in the event customers will be coming to your residence.
Lastly, your home business plan should include your thoughts on growth, so that you hopefully increase the size and scope of your business over time.
Home business plans will range in size and needs, but having one makes it easier to plan for success.
Photo credit: managementhelp.org
Dave Thomas, who discusses subjects such as sample business plans and business phone services, writes extensively for San Diego-based Business.com.