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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, 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.