How to Start a Home-based Business

According to IDC, a top national research firm, there are between 34.3 million and 36.6 million home-based businesses in the United States alone. The Home-based Business Institute estimates that about 70% of home-based businesses will last over a 3 year period compared to 29% of other business ventures. Home-based business is a $427 billion a year industry as estimated by Entrepreneur Magazine.

Nowadays, more and more people are working from home. They do some or all of their work at home. Many people find that working at home is the “ideal working arrangement” and decide to formally set up businesses in their homes.

People are striking out and achieving economic independence by turning their skills and interests into dollars. With the technological advancement of the internet, the opportunities seem to be endless.

Getting Started

Before getting started, it is essential to know why you are doing it. To be successful, you have to know the reason(s), and it should be more than just a desire to be your own boss. It is also important for you to understand what this home-based venture involves.

Ask yourself these questions:

- Can I work under the same roof that my family lives in?
- Am I self-motivated to work on my own?
- Am I a self-starter?
- Can I deal with the isolation of working on my own from home?
- Do I have the self-discipline to maintain schedules?
- Can I easily switch from home responsibilities to serious business work?


Finding Your Niche

Choosing a home business is a very important decision. You must make your decision with great care and concern for the future.

Before you invest your time and money, first ask yourself these questions:

- Do you have what it takes to run a business successfully from home?
- Do you have the talents and skills needed to compete successfully?
- Can you identify and describe the business you plan on establishing?
- Is there a demand for your service or product?
- Can you successfully market your service or product?
- What advantages do you have over your competitors?
- Does your home have a space for a business?
- Does your family support your business goals/vision?


Legal Requirements

A home-based business is subject to the same laws and regulations affecting other businesses. Here are some of the general areas to watch out for:

- Be aware of your city’s zoning regulations. If your business operates in violation of them, you could be fined or asked to close down.
- Certain products cannot be produced in the home. Most states outlaw the home production of fireworks, poisons, explosives, drugs, sanitary or medical products and toys. Some states also prohibit home-based businesses from making food, drink or clothing.

In addition, there are registration and accounting requirements to consider:

- Your business name may need to be registered with the state.
- Your business may need an A.C.N and A.B.N and business tax file number.
- You may need to obtain a work certificate or licence from the state.
- You may need to register with some of the tax requirements.
- A separate business telephone and bank account normally are required.
- If you have employees, then you need to comply with minimum wage and employee health and safety laws.

Once you have thought about the pros and cons of a home-based business, it is time to start working on your business plan.

Feel free to use this article in your blog or website or you can even email it to friends BUT with this link intact http://smlbusiness.blogspot.com