Checklist for Starting a Home Business

Staples Home Office/Small Office Expert, Steven Strauss has put together this checklist to be used to get your home business started.

Do your research

You must first do some market research to determine if there is a market for your proposed business. The first law of business is (or at least should be): you must fulfill a market need. If no one wants, or is willing to pay, for your proposed product or service, the business will fail. It is as simple as that.
There are many organizations out there with plenty of information that will help you make some informed decisions about your potential business. Government departments, trade organizations and associations (particularly helpful), firms like Dun & Bradstreet and Robert Morris & Associates, public libraries, your local chamber of commerce, business departments at universities, and the Small Business Association will all have helpful information. It also doesn’t hurt to simply pound the pavement and talk directly to potential customers and competitors.
After you have concluded that you have a good idea and are convinced that there is likely a market for your business, the next step is to actually start that business. The steps you’ll need to follow are below. Please note that this list is chronological; you likely will be doing many of these things at the same time.

Choose a name

The first thing to do is name your business, and doing so should be fun. How do you pick a name? Begin with what your business is going to do and the image you want to express. Both must either be in the actual name of the business or at least be reflected in the name, so that when people hear it, they know what you are offering.

Register the name

Once you have your business name, you are probably required by your city, county, or state to register your business name, also known as a dba (doing business as). Registering your dba with the proper authorities puts the public on notice that you are the owner of the business.

Begin using the name

You will need to open up a checking account in the business’ name. Also, you’ll need stationery, business cards, signs, etc. made up with your new name.

Create a business plan

A business plan is your blueprint for success. In it, you describe exactly how you plan to make money at this business.

Consider your business structure

As a sole proprietor, you would be personally liable for any debts of the business. Because of that, and even though it is more expensive, you may want to consider incorporating or forming a limited liability company. These business entities legally protect you from personal liability. Consult your lawyer or tax professional to determine the most appropriate structure for your business.

Get financed

After you have created a business plan, you will have a much better idea of how much money you need and where you will spend it. The next step then is to find that money. The usual methods are your savings, home equity, family and friends, a loan. The option of last resort is credit cards. Learn more about landing a business loan.

Budget for the acquisition of equipment and supplies

Because of recent changes in the tax laws, the cost of equipment purchased in 2002 can be a deductible expense up to $24,000 a year instead of being depreciated over several years, even if you finance the purchase. Consult with your accountant for additional details. Also, be sure to properly insure you, you business, and your business assets.