21 Steps To Home based business Success
Fifty million home-based organizations will likely be in procedure by 1997this link according to Website link Resource's Countrywide Work-at Property Study. Throughout the country, people who want much more handle over their life are commencing dwelling corporations In New Orleans, Rick Hart's home centered cajun Cargo ships seafood nation huge. In Palatine, Illinois, Stephaine Heavey functions from home creating and marketing initial patterns for cloth dolls. And in Dallas, Lisa McElya published the Dallas Bash & Event Planners Guidebook from the entire first floor of her two-story property. These three people are living the new American dream of owning a business, but avoiding the high overhead and start-up costs of a commercial location. If the idea of working from home is appealing, but you don't know where to begin, here is a step-by-step guide. STEP #1 DECIDE WHAT PART OF THE HOUSE TO USE Select an area away from family activity. The perfect space is a separate room (or perhaps the garage), but any area will do, if it can hold all the business supplies and equipment, and also provide enough work space for desks, tables, or counters. STEP #2 DETERMINE HOW MUCH TIME YOU CAN SPEND ON THE BUSINESS Many people today start a household business on a part-time basis while raising children or working outside the property. Others start full-time when family and finances allow. However you begin, figure out how may hours per week you can devote to the business Make a weekly chart of your activities, examine it, and determine where the business fits. Don't assume you have time and find out later you don't. STEP #3 DECIDE ON THE TYPE OF BUSINESS Make a list of things you like to do, your get the job done and volunteer experience, and items you own that can be used in a business. Look about this line-up, and using ideas from it, list possible corporations to start. Eliminate any business that isn't appealing or doesn't fill a need individuals have. For ideas on different types of firms, consult 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 proprietorship. As its name implies, a sole proprietorship is owned by one 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 business form: 1. You own all the profits
2. Your business is easy and cheap to organize. You don't need any government approval, although you may be required to carry a city, state or county license. Your only other obligation is to notify the Internal revenue Service (IRS) for the purposes of sales tax.
3. You're the boss
4. You enjoy certain tax savings. You must pay regular individual taxes on your income, property, and payroll, but these are not levied as special taxes, as with a corporation. You will also have to pay sales tax which you have received from your customers.
5. Greater personal incentive and satisfaction. Since you have your investment to lose if your business is not successful, you should be extra willing to put time, thought, and energy into the business. And when your business is successful, you enjoy maximum sense of accomplishment since you know its success was dependent upon your decisions about your management ability alone. For much more information about this and other forms of business, send for the U.S. Small Business Administration (SBA) Publication MP25. Selecting the Legal Structure for Your BUsiness (50 cents). It outlines the advantages and disadvantages of each legal type of structure. If after reading it you are still uncertain what form of the business should take, consult an attorney. STEP #5 DETERMINE WHERE THE MONEY WILL COME FROM There are three ways to finance start-up costs: use your own money, obtain a loan, or find investors. If possible, it is better to start small, use your savings, and not worry about repaying a debt. also keep in mind that since you are a home-based, chances of qualifying for a loan or finding investors are slim until the success of your idea is proven.