A 20-Point Checklist for New Home Businesses

You're eager to start your home business and bringofbusiness that can be operated from your home.
in someextra income. Although you're probably9) Find out what licenses, registration, or permits
bursting with ideasand enthusiasm and want to jumpyouneed to operate your home based business.
right in, take some time toplan and prepare for your10) Research any additional regulations applicable to
new venture.yourproduct. Find out if there are restrictions on
Here's a simple checklist you can use in the startupproducingit from your home. For example, if you're a
phaseof your home based business. Feel free to addcaterer, theauthorities may not allow you to prepare
additionalcheckpoints of your own!food in yourhome if you have pets running around!
1) Assess your personality. Are you the11) Select a business structure, such as sole
entrepreneurialtype that will do well with your ownproprietorship,partnership, or corporation. Again, you
business? Are youself-motivated, disciplined, andmay want toconsult with a qualified professional to
willing and able toput forth the effort, time, anddeterminewhat's best for your specific situation.
money? Are you the typethat can get up after a12) Assess your financial situation. Do you have
failure and try again? Thereare many quizzes availableenoughto finance a business startup? How will you
to help you decide whetheror not you're ready for ahandleemergencies? Don't forget about marketing
home business. Try ests/areyouready.htmexpenses --the success of your business will depend
2) Appraise your skills, knowledge, and experience.in large parton how well you market it.
Makea list of businesses you think you would be13) Secure additional funds, if necessary. Loans, lines
capable ofbuilding.ofcredit, grants, savings, and employment income are
3) Know your interests. If you're doing somethingsomeways that entrepreneurs can finance their
you love,you are more likely to work harder andbusinesses.
enjoy yourself.The US Small Business Administration has a useful list:
A good place to find unique business ideas is here:14) Prepare a business plan to help you define your
.cgi?bizideasgoalsand stay focused. Again, the US SBA offers help
4) Figure out what type of business you want to run.at
Outof the huge number of possibilities, select one15) Investigate the costs associated with purchasing
thatworks well with your skills and your interests.thenecessary equipment, materials, and supplies.
Anexcellent manual with 16 different InternetContactseveral suppliers to compare quality, prices,
'businessmodels' that you can copy is available atandservice.
5) Do some market research. Is there a demand for16) Talk to your local tax office. Ask for any
theproduct you plan to sell, and at the price atrelevantinformation on how your home business will
whichyou want to sell it? After your (projected)affect yourtax situation.
expenses,will you be profitable?17) Consider purchasing additional insurance to cover
6) Check out your competitors. How will youyourbusiness assets.
distinguishyourself from them? Why should18) Set up your home office. Establish rules and
customers come to youinstead of to them? What'officehours', when customers can generally expect
are they doing right orwrong, and how can youto reachyou. Consider setting aside a room specifically
improve upon them?foryour office space.
7) Select a business name. Make sure you don't19) Talk to your bank about a business account, to
infringeupon someone's trademark! You can researchkeepyour business and personal income and
trademarksat . Consult with aqualified legalexpenses separate.
professional for more information.20) Consult with professionals. Depending on your
8) Know the zoning regulations in your area. Makesituation,you may need to use the services of
sure thatyou are permitted to operate a businesslawyers, accountantsor bookkeepers, insurance
from your home.agents or brokers, and others.
Some areas may also place restrictions on the type