How to Set Up a home based business

Home based businesses are fast becoming a popular way to serve small companies, while reducing expensive start-up costs such as leasing space, lease hold improvements, utility and phone deposits and major office equipment. Thousands of people across the country find that working from home gives them the benefits of an income with the flexibility to work when it best for them and care of family and other responsibilities that often arise throughout the day to take.

But before you start home based business, consider the following advice:

  • Determine local and state requirements for licensing and zoning regulations. Make sure you contact your local zoning office to find out how the zoning in your area may affect your business plans. Determine if your business requires any licenses and file the necessary forms.

  • Rent a PO box and use that address on your promotional mail and stationery, doing this will make it less obvious that you work from home. The professional image you portray is very important to your customers.

  • Install a telephone in your home dedicated to your business.

  • Use an answering machine for incoming calls business.

  • Organize your office with great care. Make sure you have enough space to meet your needs.

  • In planning appointments with clients, to consider your client's office or renting a meeting room with a professional image to maintain.

  • Establish contacts with your competitors and join associations relevant to your business. Have your clients suggest possible new clients and ask if they will recommend you.

  • Keep excellent records of entertainment and travel expenses. The Internal Revenue Service (IRS) tends to audit home-based businesses more frequently, especially when they write off a variety of costs, including the percentage of the mortgage or rent for your office. There are several good goalkeepers record as Day Timer, Franklin Quest and Day Planner that will help you keep track of your expenses. Your accountant, a CPA recommended, can advise you on deductions you can take and records you must keep for the IRS.

  • And above all, put some of your earnings into a savings account for those times when your business is in a crisis. And it will happen.

  • Discipline yourself. You need a self-starter and follow a routine, just like you work for other things. In many cases, you're the only person you can trust to get the job done. Unless it's an emergency, not baby-sit or chat with your neighbors.