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Local Business  » Home Based Businesses: What You Need To Know

Home Based Businesses: What You Need To Know

Chances are you already have a good idea for what type of

business you'd like to run out of your home. If you don't have a

clue, you can find ideas for home based businesses online, by

doing some serious thinking, and by talking to other people who

are operating them. A lot of businesses have associations and

organizations and there are also community business groups.

Visit some of these to find some ideas for home based businesses

or to learn more about a specific interest.

Once you've decided on some ideas for home based businesses, you

need to come up with a business plan. Even home based businesses

need a plan in order to be successful. If you need to borrow

money to get started, it will be required by your lender.

Business plans can be extremely complicated, so you'll be better

off making one that you understand and will follow. The main

point of business plans, for big companies or home based

businesses, is to give you a road map to follow and meet your

goals. If you haven't written a business plan before, you can

find many examples on the Internet. The main points should

include:

* Your motivation * Product or service * Target customers *

Revenue goals * Time frame * Knowledge of competitors *

Marketing plan * Logo or your personal style * Plan one year at

a time; adjust as needed

As you get into the flow of things, you may decide to tailor

your plan a little differently. This is normal in home based

businesses.

Think about financing as you peruse home based businesses.

Something like a secretarial service wouldn't require a huge

investment. If you'll need heavy marketing, you may need to

borrow. Home based businesses are cheaper than founding a huge

corporation, but often there is a capital investment involved.

General expenses in home based businesses may include:

· New computer or upgrade

· High speed Internet access

· Fax machine with dedicated line

· Copier

· Website

· Printed business materials (cards, stationery, invoices,

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purchase orders, etc.)

· Inventory if required

· File cabinets or other storage

These items will vary, depending on types of home based

businesses but the ones listed are fairly standard.

Home based businesses are subject to regulations and taxation

just as their bigger counterparts are. You'll need to check your

local zoning commissions to find about the need for permits for

home based businesses. If little traffic is coming to your home,

you shouldn't have to do anything. If heavy car or foot traffic

will visit home based businesses, there may be issues.

Unless you're well informed about tax law, you should probably

consult with an accountant. Home based businesses undoubtedly

will have write-offs, especially during your first year. You'll

also need to know about incorporation and business licensing.

If you do plenty of research on home based businesses before you

get started, you'll be able to start with confidence.

About the author:

John Williams writes about home based business

issues.