Planning for a Home-Based Business

If you want to start working out of your home in the next

You definitely want to have goals for your new home business, and you definitely want to make plans to help you achieve those goals. But try to avoid overplanning. Keep it simple.

There are three key things to consider as you get started: setting up your place of business, deciding on your price, and getting customers.

Here are some of the questions to answer as part of the planning process:

• Where in your home will you conduct business?
• Will you have to make any changes for it to be suitable for your business?
• Does your neighborhood or community require any special licenses or permits for you to operate your business out of your home?
• What equipment will you need to do your job properly?
• How much money do you want to make each week, month or year?
• How much business will you have to do to achieve that goal, and what will you have to charge customers?
• How will you reach potential customers — advertising, word of mouth, fliers distributed in your neighborhood, notices posted on public bulletin boards?

Answering these questions will help you create a plan to get your business started. When you're at the stage when you need financing, you'll have to consider the tactics of business planning and financing. Look at our article, Ten Tips for Financing Your Home-Based Business, to get a sense of how to proceed with the money angle.

When you're ready to incorporate, you'll want to consider the tax implications of different types of businesses. Our article, Choosing a Corporate Structure for Your Home-Based Business, provides an overview of your options and the factors in your decision.