Saturday, July 15, 2006

Starting A Home Based Business

There are many reasons to starting your own home based business.

You can become independent or just earn some extra income. Your home business will create tax deductions which will reduce your taxable income.

It is fairly easy to get started and there are an endless number of online and offline resources to help you get started.

1. Decide what type of business interests you. This is the most difficult part of the process as you do not want to jump into anything too quickly. Consider your interests and what things you are good at. The Internet has made it possible for just about anyone to start an online retail store and the marketplace is global.

2. Develop a business plan. This does not have to be complicated. Simply write down your plan for making your business work. Determine what you will sell, how you will market your business, who your potential customers will be, etc.

3. Decide on the name of your business. If you are going to name your business something other than your own legal name then you will need to file for a fictitious business name. Contact your State or County recorder’s office for the proper forms.

4. Check with your county and state for local requirements for home based business. If you will be selling merchandise then you will need to contact the department of revenue for your state to obtain a Retail Merchant Certificate or Sales Tax ID number. This will allow you to collect sales tax on merchandise sold.

5. Set up a separate bank account for the business. This will help you keep track of business income and expenses. Do not mix your personal and business finances together.

6. Set aside a place in your home where you will work on your business. If you want to be successful you must treat your business like a business.

7. Work, Work , Work.

Starting a home business can be exciting and it can also be a lot of work.

Don't believe anyone who tells you that it is easy. When you are researching ideas for your home based business you will come across a lot of opportunities for sale. Some of these will contain excellent information while others will be a rip off. Consider these offers carefully and remember, if it sounds too good to be true? It probably is.

Good Luck!

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