General Business and Finance Blog

tartup Steps to Home Business Success” guide.

DECIDE WHAT PART OF THE HOUSE TO USE

Select an area away from family activity. The perfect space is a separate room (or perhaps the garage), but any area will do, if it can hold all the business supplies and equipment, and also provide enough work space for desks, tables, or counters.

DETERMINE HOW MUCH TIME YOU CAN SPEND ON THE BUSINESS

Many people start a home business on a part-time basis while raising children or working outside the home. Others start full-time when family and finances allow. However you begin your “Realistics startup steps to home business success”. Figure out how may hours per week you can devote to the business, make a weekly chart of your activities, examine it, and determine where the business fits. Don’t assume you have time and find out later you don’t.

DECIDE ON THE TYPE OF BUSINESS

Make a list of things you like to do, your work and volunteer experience, and items you own that can be used in a business. List possible businesses to start, eliminate any business that isn’t appealing or doesn’t fill a need to people.
For ideas on different types of businesses consult business professionals and expertise, to find out profitable and“Realistics startup steps home business success” that you can start up in your locality

CHOOSE A LEGAL FORM

A sole proprietorship is owned by one individual. it is the oldest form of business, the easiest to start, 
and the least complicated to dissolve. Here are some of the advantages of this business form:

1. You own all the profits
2. Your business is easy and cheap to organize. You don’t need any government approval, although you may be required to carry a city, state or county license. Your only other obligation is to
notify the Internal revenue Service (IRS) for the purposes of
sales tax.
3. You’re the boss 
4. Greater personal incentive and satisfaction. Since you have your investment to lose if your business is not successful, you should be more willing to put time, thought, and energy into the business. And when your“Realistice startup steps home business success” is successful, you enjoy maximum sense of accomplishment since you know its success was dependent
upon your decisions about your management ability alone.

DETERMINE WHERE THE MONEY WILL COME FROM

There are three ways to finance your “Realistics startup steps to home business success” start-up costs: use your own money, obtain a loan, or find investors. If possible, it is better to start small, use your savings, and not worry about repaying a debt. Also keep in mind that since you are a home-based business enterprenuer, chances of qualifying for a loan or finding investors are slim until the success of your “Realistics startup steps to home business success” idea is proven.

GATHER INFORMATION

Spend a few weeks researching home-based businesses. A library or bookstore can provide numerous books on business basics, and on the specific type of business that interest you. 

PICK A BUSINESS NAME AND REGISTER IT

for your “Realistics startup steps to home business success” if the business you choose is different from your name, file an assumed name certificate with your country. You will be notified if another business already has that name, so you can select a new one. Do this before investing in expensive stationery and brochures. It costs only a few dollars to file, and it protects the business name from being used by someone else in the county.

WRITE A BUSINESS PLAN

A good business plan clarifies your ideas and establishes a plan of action. A good business plan should include a description of what you are selling or the services that you are providing, your background and qualifications, who the prospective customers are and where they can be found, what is needed to build the business, how you plan to promote, and how much money is need for start-up costs.

GET AN IDENTIFYING NUMBER

If you are the sole proprietor of the business and have no employees, you may either use your Social Security number or an Employee Identification Number (EIN) as the business number on official forms. If you have employees, or the business is set up as a partnership or corporation, you must obtain an EIN. To do
this, complete IRS Form SS-4 (Application for Employer identification Number) and file it with the nearest IRS Center.

OBTAIN A SALES TAX PERMIT

If the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect sales tax. If you do, they will send you the necessary information and forms to complete. You also use this tax number when your purchase items for resale.

OBTAIN LICENSES & PERMITS

for your “Realistics stratup steps to business success” i t’s very important not to overlook any necessary license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the regulations and guides to setting up home businesses.

Call to find out what is need for your particular business. In addition, Chamber of Commerce provide information on city, state and country licenses and permits.

SELECT BUSINESS CARDS, STATIONERY, BROCHURES

Spend time on the color, design and paper for these items. They make a definite impression-good or bad- on the people who receive them. If you are not certain what is most suitable and effective, consult a graphics designer or a creative printer who will help you.

OPEN A BUSINESS CHECKING ACCOUNT

Call several banks to find out what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service charge. Also ask about credit card if you plan to offer this convenience to your customers. Bank fees can be significant, so shop around for the best deal. if your personal checking account is with a credit union, see if it can also provide a separate business account. when you open your account, you may need to show the assumed name certificate and business license.

Finally,for your “Realistics startup steps to home business success” investigate obtaining a credit card in the business’s name. If this is not possible, set aside a personal credit card to use for business expenses.

OUTFIT THE BUSINESS

Make a list of everything needed to start the business, but before you buy anything, look around the house for things you already own that are usable. When you are ready to start purchasing, check the classified ads
and garage sales. Both are good, inexpensive sources for office furniture, typewriters, computers, answering machines, etc. But only what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.

Have you ever dreamt of owning a successful home business? People all over the country are looking for more control over their lives by starting a home business. Home business success is becoming more and more recognized as times go by.

Success stories abound of people who have started home based businesses that have succeeded beyond their wildest dreams. Home business success is more achievable and ideal because it saves the start up and the overhead costs associated with running a commercial premise.

Home business success is within your grasp if you can comply with these 21 easy steps;

Get a physical location within your house to host your business. It can be a separate room, the garage, the attic or anywhere that can hold your business equipment and enough for you to work comfortably in.

Home business success requires time. How much time are you willing to devote to your business to ensure it succeeds? You need to make a weekly schedule of all your activities at home, outside the home and decide where and how to place your business.

What do you like to do? What need can this fill for your future clients? Home business success stems from natural talents that fulfill needs and are nurtured into reality and later into riches. We can help you with ideas at the end of this article.

Go solo. The legal form of this is sole proprietorship. This is the easiest way to start because you are the boss so the profits are all yours, the work is cheaper to organize, you enjoy some tax savings although you need to notify the IRS for sales tax reasons. You will ensure home business success because you will have to prove to yourself that you can succeed, hence you will be more driven to do so.

You can get more information on this from the U.S. Small Business Association (SBA) publication MP25 about other business forms available. You can also seek further clarification by consulting an attorney.

Start small, that is, start with your own money. This is because you and your idea are still new and unproven so you may not qualify for a loan or getting trusted investors.

Info, info info. Home business success is only possible with extensive research on your type of business. Visit your local library or book store and research information on the business that interests you.

Location, location, location. Find how the location of your home is zoned and what restrictions apply. Also reread your lease. Home business success here will depend on what your neighbors perceive so don’t upset them.

First things first. Before you begin anything decide on a business name and have it registered. This will keep your business name unique to you only.

See your business on paper first. Nothing ensures home business success like a well written business plan.  This plan covers all areas of the business. A good place to start would be SBA publication #M925, The Business Plan for Home-based Business.

You need a number to identify you always. If you are alone you can use your Social Security number or Employee Identification Number (EIN) as the business number on official forms. However, when you grow and get employees or you change into a corporation, you must apply for an EIN. The IRS centre nearest you can supply you with Form SS-4 (Application for Employer Identification Number) for filling and later filing.

If you are planning to sell something, you need to find out whether you need to include sales tax in the costing. Call your local tax agency to explain the procedure on acquiring a sales tax permit.

All cities and counties have their own regulations on obtaining the necessary license or permit to operate your kind of business. Consult City Hall and the Chamber of Commerce for this very important information.

How do you want people to see you? Good, of course. A graphic designer or a creative printer can make you look good on your business stationery, like cards, brochures and other business stationery. You can only ensure home business success if your first impressions last.

Separate your business money by shopping around for a checking account with good and flexible services. A place to start is at your local bank. Also find out about credit card services so that you can make buying from you easy for your customers. If the business cannot have its own credit card then you need to set aside a personal credit card for the business only. You can track your income and expenses this way to ensure home business success. Convenient buying procedures for your customers will accelerate your journey to home business success.

Records, records, records. Home business success will not materialize unless you keep meticulous records. You can start manually with efficient records for bookkeeping to track income and expenses, travel and mileage, correspondences, invoices, suppliers, clients etc. You will only reach home business success to the level that you keep your work records. Learn important information on record keeping from IRS publication # 583 Information for business tax payers.

The big bad wolf. Familiarize yourself with the entire IRS requirement for operating your business. You can actually save some money when using your home for business purposes by consulting IRS publication #587 Business Use of the Home. Other important forms are ;

Schedule SE (compensation of Social Security Self Employment Tax)

Schedule 104 ES (estimated Tax for Individuals)

You may need to file these when the time comes. Keep the IRS happy and your own home business success is assured.

Start with the basics. List all the things you need to start the business and then shop for inexpensive places to get them e.g. garage sales, classified ads etc. Beware of overspending here.

Are you reachable at all times? You can use your own personal phone but the best is to get a separate phone line for the business. The idea is to track business call expenses. Have an answering machine working when you are away. If your prospective customers can reach you at all times, they will assure your home business success, because you can respond to queries faster and stay ahead of competition.

Get a post office box to make your business look more official. Find out the rates especially bulk rates if you are doing bulk mail deliveries.  For packages, United Parcel Service (UPS) is cheaper than the Post Office.

How much liability can your home business take? Check with your homeowners’ insurance agent for a rider on your existing policy. You need to have adequate personal and product liability insurance. Shop around for the best deal.  You can save money on medical insurance by joining an associations’ group plan e.g. The National Association for the self employed on 800-527-5504. A home business success story can become a failed statistic because of inadequate coverage during the difficult times.

Clean up and shape up. Have a garage sale and clear all accumulated clutter. Have a family meeting and organize the team so that the home keeps running efficiently while you work. Have a note book to record all your daily tasks. The most important ingredient for home business success is a work schedule that is disciplined and result oriented.

Home business success is achievable and the journey enjoyable because you are doing the work you love and making money as a consequence. 

Fifty million home-based businesses will be in operation by 1997, according to Link Resource’s National Work-at Home Survey. All around the country, people who want more control over their lives are starting home businesses

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In New Orleans, Rick Hart’s home based cajun Cargo ships seafood nation wide. In Palatine, Illinois, Stephaine Heavey works from home designing and selling original patterns for fabric dolls. And in Dallas, Lisa McElya published the Dallas Party & Event Planners Guidebook from the entire first floor of her two-story home.

These three people are living the new American dream of owning a business, but avoiding the high overhead and start-up costs of a commercial location. If the idea of working from home is appealing, but you don’t know where to begin, here is a step-by-step guide.

STEP #1 DECIDE WHAT PART OF THE HOUSE TO USE

Select an area away from family activity. The perfect space is a separate room (or perhaps the garage), but any area will do, if it can hold all the business supplies and equipment, and also provide enough work space for desks, tables, or counters.

STEP #2 DETERMINE HOW MUCH TIME YOU CAN SPEND ON THE BUSINESS

Many people start a home business on a part-time basis while raising children or working outside the home. Others start full-time when family and finances allow. However you begin, figure out how may hours per week you can devote to the business Make a weekly chart of your activities, examine it, and determine where the business fits. Don’t assume you have time and find out later you don’t.

STEP #3 DECIDE ON THE TYPE OF BUSINESS

Make a list of things you like to do, your work and volunteer experience, and items you own that can be used in a business. Look over this line-up, and using ideas from it, list possible businesses to start. Eliminate any business that isn’t appealing or doesn’t fill a need people have.

For ideas on different types of businesses, consult the end of this article. Other ideas can be found in the source material listed at the end of this article.

STEP #4 CHOOSE A LEGAL FORM

The three basic legal forms are sole proprietorship, partnership, and corporation. The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one individual. It is the oldest form of business, the easiest to start, and the least complicated to dissolve. Here are some of the advantages of this business form:

1. You own all the profits
2. Your business is easy and cheap to organize. You don’t need any government approval, although you may be required to carry a city, state or county license. Your only other obligation is to notify the Internal revenue Service (IRS) for the purposes of sales tax.
3. You’re the boss
4. You enjoy certain tax savings. You must pay regular individual taxes on your income, property, and payroll, but these are not levied as special taxes, as with a corporation. You will also have to pay sales tax which you have received from your customers.
5. Greater personal incentive and satisfaction. Since you have your investment to lose if your business is not successful, you should be more willing to put time, thought, and energy into the business. And when your business is successful, you enjoy maximum sense of accomplishment since you know its success was dependent upon your decisions about your management ability alone.

For more information about this and other forms of business, send for the U.S. Small Business Administration (SBA) Publication MP25. Selecting the Legal Structure for Your BUsiness (50 cents). It outlines the advantages and disadvantages of each legal type of structure. If after reading it you are still uncertain what form of the business should take, consult an attorney.

STEP #5 DETERMINE WHERE THE MONEY WILL COME FROM

There are three ways to finance start-up costs: use your own money, obtain a loan, or find investors. If possible, it is better to start small, use your savings, and not worry about repaying a debt. also keep in mind that since you are a home-based, chances of qualifying for a loan or finding investors are slim until the success of your idea is proven.

STEP #6 GATHER INFORMATION

Spend a few weeks researching home-based businesses. A library or bookstore can provide numerous books on business basics, and on the specific type of business that interest you. Homemade Money by Barbara Brabee (see sources) is an excellent book to start with.

If you are considering a computer business, get in touch with the association of Electronics; Cottagers, P.O. Box 1738, Davis, CA 95617-1738. To keep informed of what is happening in home business world, contact National Home Business report, P.O. Box 2137, Naperville, IL 60566, for subscription information; and Mothers Home Business Network, P.O. Box 423, East Meadow, NY 11554 (send SASE for free information).

STEP #7 CHECK ON ZONING RESTRICTIONS

Find out how your property is zoned, the call City Hall and ask what regulations apply to home businesses in that zone. Also, if you rent or live in a condominium, check the lease or homeowner’s association rules to be certain a home business is allowed.

Generally, if you do not annoy your neighbors with excess noise, odors, and traffic, you will not be deterred from running a business at home. The neighbors may not even be aware of the business, but it is necessary to know exactly what you can and can’t do before you start. This is important should any problems or questions arise later.

STEP #8 PICK A BUSINESS NAME AND REGISTER IT

If the business you choose is different form your name, file an assumed (or fictitious) name certificate with the county. You are notified if another business already has that name, so you can select a new one.

Do this before investing in expensive stationery and brochures. It costs only a few dollars to file, and it protects the business name from being used by someone else in the county.

STEP #9 WRITE A BUSINESS PLAN

A good business plan clarifies your ideas and establishes a plan of action. A good business plan should include a description of what you are selling, your background and qualifications, who the prospective customers are and where they can be found, what is needed to build the business, how you plan to promote, and how much money is need for start-up costs.

SBA Publication #M925, The Business Plan for Home-Based Business () is helpful.

STEP #10 GET AN IDENTIFYING NUMBER

If you are the sole proprietor of the business and have no employees, you may either use your Social Security number or an Employee Identification Number (EIN) as the business number on official forms. If you have employees, or the business is set up as a partnership or corporation, you must obtain an EIN. To do this, complete IRS Form SS-4 (Application for Employer Identification Number) and file it with the nearest IRS Center.

STEP #11 OBTAIN A SALES TAX PERMIT

If the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect sales tax. If you do, they will send you the necessary information and forms to complete. You also use this tax number when your purchase items for resale.

STEP #12 OBTAIN LICENSES & PERMITS

It’s very important not to overlook any necessary license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food.

Call City Hall to find out what is need for your particular business. In addition, Chamber of Commerce provide information on city, county and state licenses and permits.

STEP #13 SELECT BUSINESS CARDS, STATIONERY, BROCHURES

Spend time on the color, design and paper for these items. They make a definite impression-good or bad- on the people who receive them. If you are not certain what is most suitable and effective, consult a graphics designer or a creative printer whose work you like.

STEP #14 OPEN A BUSINESS CHECKING ACCOUNT

Call several banks to find out what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service charge. Also ask about credit card if you plan to offer this convenience to your customers. Bank fees can be significant, so shop around for the best deal.

If your personal checking account is with a credit union, see if it can also provide a separate business account. when you open your account, you may need to show the assumed name certificate and business license.

Finally, investigate obtaining a credit card in the business’s name. If this is not possible, set aside a personal credit card to use for business expenses.

STEP #15 SET UP RECORD-KEEPING SYSTEMS

Put together a simple and effective bookkeeping system with an 8 1/2 x 11″ three-ring binder, columnar pad sheets and twelve pocket dividers from the office supply store. For each month, set up columnar sheets for income and expenses. Use a pocket divider for each month’s receipts, bank statement, deposit tickets, and canceled checks.

In addition, an automobile log for business mileage, and filing system for correspondence, invoices, supplier catalogs, client records, etc. are two other useful tools.

For more information on record-keeping, see IRS publication #583, Information for Business taxpayers.

STEP #16 CHECK IRS REQUIREMENTS

If you comply with basic IRS guidelines, you can deduct a percentage of normal household expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc.) as a business expense. see the box accompanying this article and, for more detailed information, IRS publication #587, Business Use of the Home.

Also become familiar with these IRS forms: Schedule SE (compensation of Social Security Self-Employment Tax) and Schedule 1040 ES (estimated Tax for Individuals). Depending on circumstances, you may have to file them.

STEP #17 OUTFIT THE BUSINESS

Make a list of everything needed to start the business, but before you buy anything, look around the house for things you already own that are usable.

When you are ready to start purchasing, check the classified ads and garage sales. Both are good, inexpensive sources for office furniture, typewriters, computers, answering machines, etc. But only what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.

STEP #18 DECIDE ON TELEPHONE REQUIREMENTS

Call the telephone company to find out the cost of a business phone in your area. If you cannot afford a separate business line, investigate the telephone company’s regulations on using your personal phone in a business. It may be possible to do this if you follow certain guidelines. Keep a record of long distance business calls as they are a deductible expense. Finally, consider the benefits of an answering machine to catch calls when you are out.

STEP #19 CHECK OUT THE POST OFFICE & UPS

Using a post office box as the business address down plays the fact you are home-based. It also prevents customers from dropping in at all hours.

While looking into box rental, ask for information on the various postal rates, particularly bulk rate, if you plan to do large or specialized mailings. If you mail many packages, check out United Parcel Service (UPS), as it is less expensive than the Post Office.

STEP #20 PURCHASE THE NECESSARY INSURANCE

Check with your homeowners insurance agent about a rider for your existing policy or the need for a separate business policy. Also make sure you have adequate personal and product liability coverage. Shop around, as each company has different rules regarding home businesses

STEP #21 ORGANIZE THE HOUSE & YOURSELF

To have more time for business, organize and simplify household routines. Start by holding a garage sale to get rid of unnecessary possessions. Next, have a family conference and divide household duties, making sure each person does his or her part. The, set up a planning notebook to keep track of appointments, things to do, calls to make, errands to run, shopping, etc. Finally, set up a work schedule so you won’t get sidetracked by TV, neighbor’s visits, snacking, and telephone calls.

Creating and operating a home business is a wonderful and rewarding challenge. The satisfaction is not only in the money earned, but in doing what makes you happy.

INTRODUCTION

Fifty million home-based businesses will be operational, in 1997, according to Link Resource’s National Work-at-Home Study. Across the country, people who want more control over their lives (at home and at work) are starting home businesses.

In New Orleans, Louisiana, Rick Hart’s home based Cajun Cargo ships seafood nationwide. In Palatine, Illinois, Stephaine Heavey works from home designing and selling original patterns for cloth dolls. And in Dallas, Texas, Lisa McElya published the Dallas Party & Event Planners Guidebook from the entire first floor of her two-story home.

These three people are living the American dream of owning a new company and their own business, but without the burden and overhead cost of having a physical business location. Virtual or Internet businesses are ideal because their start-up cost or initial investment to get set-up tend to be much lower. For example and in general, online affiliate marketing businesses do not require anything more than an Internet connection and perhaps a website. If the idea of working from home is appealing to you, but you do not know where to start, then here is your step by step guide brought to you by CompuLinear Software’s iMarketing Group.

STEP #1 DECIDE WHAT PART OF THE HOUSE TO USE

Select an area away from family activity, noise, and distractions. The perfect space is a separate room (or perhaps the garage, basement, or attic). Almost any area will do if it can accommodate all of your business supplies and equipment; in addition, you will need to provide enough workspace for computer hardware, desks, tables, etc.

STEP #2 DETERMINE HOW MUCH TIME YOU CAN SPEND ON THE BUSINESS

Many people start a home-based business on a part-time basis while raising children or working outside their home. Others start fulltime when family and finances allow or have been forced to do so in light of the recent recession, massive layoffs, and corporate downsizing here in the United States. However you begin, you must have a plan first and foremost; you will need to figure out how may hours per week you can devote to your new business; and how much seed money you have for your budding business venture. This is where a business plan and a little later a marketing plan are required. Make a weekly chart (see Step #22) of your activities so that you can examine it to determine where your niche business fits into the grand scheme of the marketplace. Do not assume that you will have time to devote to your new business only to discover later on that you that do not. Any new business requires commitment of one’s time especially if you are the sole proprietor who dons many hats daily!

STEP #3 DECIDE ON THE TYPE OF BUSINESS

Make a list of things you like to do, your work and volunteer experience, your knowledge base about a specific subject, and items you own that can be used in a business (see Step #17). Examine your list carefully; using ideas from the list, note all potential businesses to start. Eliminate any business that does not appeal to you or fulfill a need many people have. If you are considering an Internet business, then use Search Engine Marketing and Keyword Research to help you decide on a possibly viable online business.

STEP #4 CHOOSE A LEGAL BUSINESS FORM OR ENTITY  

The three basic legal forms are sole proprietorship, partnership (including LLP), and corporation (including C, Sub Chapter S, and LLC). The most common is the sole proprietorship. As its name implies, a sole proprietorship is owned by one individual. It is the oldest form of business, the easiest to form start, and the least complicated to dissolve. However, keep in mind that the sole proprietorship’s personal liability exposure is unlimited; your risk depends upon the nature of your business operations, environment, local economy, cost of goods, trends, and a few other factors. Here are some of the advantages of this business form (entity):

1. You own or keep all of the profits after expenses are paid.

2. Your business is easy and cheap to organize. You do not need any state or federal government formation requirements or approval, although you may be required to carry a city, state or county business and/or excise tax licenses. Your only other obligation is to notify the Internal revenue Service (IRS) for the purposes of sales tax.

3. You are the boss.

4. There are some tax savings and advantages. However, you must pay regular individual taxes on your income, property, and payroll, but these are not levied as special taxes as with a corporation. You will also have to pay sales tax which you have received from your customers’ purchases. Check with the IRS and/or a tax specialist regarding Internet sales and purchases outside of your state of business operation.

5. There tends to be a greater personal incentive and satisfaction because you have a personal investment at stake should your business not become successful; thus, you are more willing to put extra time, thought, and energy into the business. Now when your business becomes successful, you will enjoy a greater sense of accomplishment knowing that its success is solely dependent upon your managerial decisions and skills.

STEP #5 DETERMINE WHERE THE MONEY WILL COME FROM

There are four ways to finance start-up costs: use your own money, obtain a loan, grants, or venture (angel) capital. Using your own money is great if you have it on hand because you will not have to worry about repaying a debt.

STEP #6 GATHER INFORMATION

Spend a few weeks or longer researching home-based businesses, marketing trends, marketing intelligence, and your business niche. The World Wide Web, the library, or bookstore are excellent resources of information.

STEP #7 CHECK ZONING RESTRICTIONS

Find out how your property is zoned then call City Hall and ask about regulations that might apply to home businesses in your zone. Additionally, if you rent or live in a condominium, check your lease or homeowner’s association guide to be certain that a home business is allowed.

STEP #8 CHOOSE A BUSINESS NAME AND REGISTER IT

If the business you choose is different form your name, then file an assumed (or fictitious) name certificate with the county. You are notified if another business already has that name, so you can select a new one. The requirements for business name registration will vary per region. 

STEP #9 WRITE A BUSINESS PLAN  

A good business plan clarifies your mission, ideas, and establishes a plan of action concerning how you plan to go to market. A good business plan should include a description of what you are selling, your background and qualifications, who the prospective customers are and where they can be found, what is needed to build the business, how you plan to advertise and promote, and how much money will be need for start-up costs. One of the biggest problems many new small businesses have is that they are undercapitalized. A solid business plan will help you plot your course to success!

STEP #10 GET AN IDENTIFYING NUMBER

If you are the sole proprietor of the business and have no employees, you may either use your Social Security number or an Employee Identification Number (EIN) as the business number on official forms. If you have employees, or the business is set up as a partnership or corporation, you must obtain an EIN. To do this, complete IRS Form SS-4 (Application for Employer Identification Number) and file it with the nearest IRS Center.

STEP #11 OBTAIN A SALES TAX PERMIT  

If the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect sales tax. If you do, they will send you the necessary information and forms to complete. This tax number can be used for purchasing products you plan to resell. If you plan to operate a non-profit, then you will want to apply for 501(c)(3) tax-exempt status.

STEP #12 OBTAIN LICENSES & PERMITS

It’s very important not to overlook any necessary license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food. Contact your local county office for the requirements.

STEP #13 SELECT BUSINESS CARDS, STATIONERY & BROCHURES

Spend time on the color, design, and paper for these items. Make sure that your business’ logo is relevant to your product or service. These are marketing tools and you want to present your business in the best light and as competitively as possible. If you are creative, then there are a variety of professional grade business card / stationery software at your disposal; otherwise, consult a graphic designer.

STEP #14 OPEN A BUSINESS CHECKING ACCOUNT  

Call several banks to compare services they offer, minimum balances, credit cards, credit lines, rates, and service charges. When you open your business account, you may need to show your business license. Obtain a credit card in the business’ name; if this is not possible, then set aside a personal credit card for business expenses.

STEP #15 SET UP RECORD-KEEPING SYSTEMS  

After doing a little online research, one will find a wide selection of affordable record-keeping, financial, bookkeeping / accounting, and sales CRM software.

STEP #16 CHECK IRS REQUIREMENTS

If you comply with basic IRS guidelines, you may be able to deduct a percentage of your normal household expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc.) as a business expense. For further information, see—IRS publication #587, Business Use of the Home; IRS forms: Schedule SE (compensation of Social Security Self Employment Tax) and Schedule 1040 ES (estimated Tax for Individuals).

STEP #17 OUTFIT THE BUSINESS

Make a list of everything needed to start your business. Look around the house for items that are usable; you will save a lot of money by doing this. Always keep an eye out for quality, inexpensive items for your home-based office.

STEP #18 DECIDE ON TELEPHONE REQUIREMENTS

Contact the telephone company to find out the cost of a business phone in your area. If you cannot afford a separate business line, investigate the telephone company’s regulations on using your personal phone in a business. It may be possible to do this if you follow certain guidelines. Keep a record of long distance business calls as they are a deductible expense. See if you can save money by bundling your Internet and telephone services for a lower price. Pre-paid calling card services will save your business some money too. 

Finally, consider the benefits of an answering machine or service to capture important telephone calls when you are out of the office or away on vacation. And always remember to return calls in a timely and professional manner.

STEP #19 CHECK OUT THE POST OFFICE & SHIPPING

Using a post office box as the business address down plays the fact you are home-based. It also prevents customers from dropping in at all hours. While looking into box rental, ask for information on the various postal rates, particularly bulk rate, if you plan to do large or specialized mailings. If you mail many packages locally or internationally, then check out the many parcel / shipping services that are available and definitely be conscious of shipping, handling, and insurance costs. 

STEP #20 PURCHASE THE NECESSARY INSURANCE

Check with your homeowner’s insurance agent about a rider for your existing policy or the need for a separate business policy. Also, make sure you have adequate personal and product liability coverage. If you are a renter, then check with your insurance agent or broker to see if your business is covered. In some instances, you may be required to carry Errors and Omissions (i.e., business liability insurance) insurance, especially if you engage in a professional service type of business such real estate, insurance, notary, financial services, architecture, engineering, etc.

Shop around, as each insurance company and each state have different rules, regulations, and requirements concerning home business operations.

To save money on medical insurance, join an association and participate in their group medical / health plan. Discount health care cards are another option for your employees and yourself.

STEP #21 ORGANIZE THE HOUSE & YOURSELF

To have more time for business activities and functions, organize and simplify your household routines. Start by holding a garage sale to get rid of unnecessary possessions. Next, have a family conference and divide household duties and chores while making sure each person does his or her own part. There are numerous personal organizational management software, PDAs, and tools which can help you and your business get organized.

Set up a work schedule so you won’t get sidetracked by TV, neighbor’s visits, snacking, surfing the Internet, and non-business related telephone calls. This also means that you should set a specific time of day for telephone prospecting / sales calls as well as for returning calls.

STEP #22 START AN ELECTRONIC BUSINESS JOURNAL

From the pre-planning stages to Day 1 and throughout the life of your new business, keep an electronic journal of your business’ day-to-day activities, business cases and challenges, planning, action items, and of course its progress. Use your favorite word processing and/or spreadsheet program. By doing so, you will be amazed at how much more organized and efficient your business will be and how you will be much more on top of your business’ daily operations. This is also a great customer service tool.

In conclusion, forming and operating a home-based business is a wonderful, challenging, and often rewarding venture. There is nothing else like being your own boss and being the sole or top decision-maker. The satisfaction is not only in the money earned and the growth of your, but in actually doing what makes you happy and truly enjoy doing.

To your success!

The goal of being realistic when seeking new commercial loans and working capital financing will help commercial borrowers avoid a number of commercial finance problems. With proper preparation business owners should be in a better position to obtain new financing despite the difficult challenges impacting most working capital loans and small business financing. Nevertheless it should be anticipated that terms of financing will be different from prior commercial financing. Because of recent commercial lending difficulties, business owners actively assessing the most effective options for their small business finance decisions are likely to find the smoothest path to business loan success.

In view of volatile conditions which have recently impacted credit markets, this will not be a simple task. The extensive misinformation and confusion that there has been about business financing and working capital availability illustrates a common example of the problem. One of the most difficult challenges for commercial borrowers is obtaining more accurate information about what is realistically possible.

A number of harsh realities must be confronted by all small business owners when seeking to identify realistic choices in a confusing working capital management climate. For most current commercial financing decisions by business owners, there are several major factors to anticipate. In the first example, additional small business loan collateral is being requested by most commercial lenders. Second, many regional and local banks have discontinued lending for business financing and working capital. In a third example, businesses which are not currently profitable or not current in their debt payments will have extensive difficulties. For a fourth factor, commercial construction financing currently has a very limited availability. Fifth, lenders have eliminated unsecured commercial lines of credit for most small businesses.

Despite the new business financing limitations just noted, there are practical working capital options for small business owners to consider. An increasingly effective commercial financing option in the midst of an uncertain economy is a merchant cash advance program based on credit card processing activity. Even though this commercial funding option has been available for a few years, it has not been used by most small businesses. Business cash advances should be evaluated as an important tool for improving business cash flow for most businesses accepting credit cards. Small business owners wanting to pursue this financing option should consult a business financing expert who is knowledgeable about this working capital management approach as well as other small business loans.

This kind of small business financing is still in fact obtainable even though working capital loans are not as widely available as they were just a few months ago. The main change for business borrowers is the likelihood that they will be dealing with a different commercial lender since some of the largest providers have stopped making these business loans. Small business owners will benefit from finding an experienced and candid business financing expert to assist in evaluating realistic options because the most effective working capital financing providers are not aggressively marketing this capability.

As stressed above, when making commercial financing decisions it is becoming increasingly important for business owners to first determine their effective business finance funding options. This task is likely to be much more difficult than most commercial borrowers realize because of recent volatility in financial markets. It is advisable to explore commercial finance options that might be necessary if economic conditions change even further even for business owners who are satisfied with their current working capital financing arrangements. The use of Plan B contingency financing is an important tool to assist commercial borrowers in this process.

If you are a small business start up, or are already running your own small business, then in common with many small business owners you are likely to be missing one thing – a regular flow of ideas and tips which you can use to …

boost the number of customers you have

boost the amount they spend

boost the number of times they buy from you

and so boost your profits!

Isn’t this what running a small business is all about??

Running a successful small business is about doing things a little differently from that of your competitors.

These little differences can be enough to capture business from your competitors, attract new customers and bring so much money into your business that you won’t know what to do with it all. What a great problem that would be!

So how can you give you and your business this winning edge?

SKYPE ME AT MY SITE FOR MORE PROFESSIONAL ADVICE

http://lesasbigbusiness.yolasite.com or my skype name is lesasonlinebeautyboutiqe

Every week via e-mail I send out a free newsletter to lesas big business subscribers. Each newsletter contains

Article of the Week – the best ideas from writers around the world, ideas which I think will help you gain more business and make you more money

Tip of the Week – a quickly digested but hugely powerful idea on areas such as sales, marketing, getting more out of your website, and ways of astounding your customers with great service!

Small Business Book of the Week – if you really want to be successful you need to keep up with new ideas and techniques. Each week I’ll point you in the direction of a book which I think will help you and other small business owners be even more successful

Quote of the Week – an inspiration quote from business leaders and thinkers, sometimes funny, sometimes serious, but always a quote designed to stop you in your tracks and make you think about your business

… and any other stuff which I think you need to know to help boost your bottom line!

I know what it’s like to have your in-box packed with information which is time consuming to read. That’s why lesas big business   is punchy and to the point – no long waffle and padding – just clearly focused ideas, tips and techniques written with the aim of making you more money and at absolutely no cost to you!

http://lesasbigbusiness.yolasite.com

Business planning is one of the most important steps towards building a successful startup business, and you can use some specific strategies to create a comprehensive outline. An effective business plan will help you determine your goals and help you organize all of your small business ideas with ease. If you’ve ever been stuck with too many ideas and not knowing where to start, business planning will help take the pressure off. Understanding the business planning process is important for creating something that works, and something that will help you reach your goals. Launching your small business startup is much easier with a clear, step-by-step outline; here’s what you need to know:

Step 1: Organize your table of contents. This will help you outline each area of your business to include your mission statement, products and services, number of employees, and any basic market research information.

Step 2: Collect attachments and appendix materials. These are especially important if your business plan will be reviewed by potential investors or business partners, and can also help with your online business planning strategy.

Step 3: Create a list of key topics and sections. Not only will this create a cohesive document, but you’ll also be able to jumpstart your business planning process with a clear ‘map’ or guide of all your strategies. This list is especially helpful if you’re not sure where to begin, since you can just put each item down on paper and organize it accordingly.

Step 4: Assign projects and tasks for each area. This is an effective business planning strategy as it helps you break down each goal into actions steps. Assigning tasks and objectives in this way makes it much easier to stay on track during each step.

Step 5: Check for grammar, spelling, and even factual errors. Making sure your plan and notes are clear of mistakes is especially important if you’ll be presenting it to others. Doing a quick check will also help you determine if you missed any pieces of critical information and help you fine tune the final draft.

Step 6: Write up an executive summary for your small business startup. This is an important step for all business owners, and can help you pull together the entire plan in a few short pages. Many business owners turn to this summary when they need a briefing on objectives during the course of business, and you can include basic points and topics as if you were presenting it to a board or audience.

Step 7: Get an outsider’s perspective. While you need to keep your business planning strategy and ideas as confidential as possible, sharing your plan with a trustworthy person can help you catch a few key elements of your project. Get an objective view of your plan and notes so you have everything in well-organized and presented in a logical way.

Business planning doesn’t have to be difficult, but many startup business owners are intimidated by the process. Take the time to organize the critical areas of your business and put them in a logical order. Then, break them down into specific objectives and tasks so you have a strong idea of how you can be successful in each area. The time and effort you put into business planning will pay off for the long run, and help you launch your small business startup with success.

The goal of being realistic when seeking new commercial loans and working capital financing will help commercial borrowers avoid a number of commercial finance problems. With proper preparation business owners should be in a better position to obtain new financing despite the difficult challenges impacting most working capital loans and small business financing. Nevertheless it should be anticipated that terms of financing will be different from prior commercial financing. Because of recent commercial lending difficulties, business owners actively assessing the most effective options for their small business finance decisions are likely to find the smoothest path to business loan success.

In view of volatile conditions which have recently impacted credit markets, this will not be a simple task. The extensive misinformation and confusion that there has been about business financing and working capital availability illustrates a common example of the problem. One of the most difficult challenges for commercial borrowers is obtaining more accurate information about what is realistically possible.

A number of harsh realities must be confronted by all small business owners when seeking to identify realistic choices in a confusing working capital management climate. For most current commercial financing decisions by business owners, there are several major factors to anticipate. In the first example, additional small business loan collateral is being requested by most commercial lenders. Second, many regional and local banks have discontinued lending for business financing and working capital. In a third example, businesses which are not currently profitable or not current in their debt payments will have extensive difficulties. For a fourth factor, commercial construction financing currently has a very limited availability. Fifth, lenders have eliminated unsecured commercial lines of credit for most small businesses.

Despite the new business financing limitations just noted, there are practical working capital options for small business owners to consider. An increasingly effective commercial financing option in the midst of an uncertain economy is a merchant cash advance program based on credit card processing activity. Even though this commercial funding option has been available for a few years, it has not been used by most small businesses. Business cash advances should be evaluated as an important tool for improving business cash flow for most businesses accepting credit cards. Small business owners wanting to pursue this financing option should consult a business financing expert who is knowledgeable about this working capital management approach as well as other small business loans.

This kind of small business financing is still in fact obtainable even though working capital loans are not as widely available as they were just a few months ago. The main change for business borrowers is the likelihood that they will be dealing with a different commercial lender since some of the largest providers have stopped making these business loans. Small business owners will benefit from finding an experienced and candid business financing expert to assist in evaluating realistic options because the most effective working capital financing providers are not aggressively marketing this capability.

As stressed above, when making commercial financing decisions it is becoming increasingly important for business owners to first determine their effective business finance funding options. This task is likely to be much more difficult than most commercial borrowers realize because of recent volatility in financial markets. It is advisable to explore commercial finance options that might be necessary if economic conditions change even further even for business owners who are satisfied with their current working capital financing arrangements. The use of Plan B contingency financing is an important tool to assist commercial borrowers in this process.

If you read any material from the great traders you will hear them tell you that discipline is the key to forex profits. If you don’t have it – you won’t win and most of the 95% that lose fail to acquire it.

This trading tip is all about acquiring it the easy way and trading for huge profits.

A simple equation for market success is:

A logical trading system + Understanding = Confidence = Discipline

Sounds simple? It is – but most traders fail to understand it and its significance.

Lets look at some common mistakes made by forex traders.

Most new traders use illogical systems.

For example, they try and day trade and that’s a guaranteed way to lose as the logic is ill founded. Other think you need to predict to win but you cant predict what will happen in the future – again the logic is wrong.

Other fail to understand how and why their trading system works.

They simply follow a guru or mentor and expect to win with no losing periods.

In the real world, they get some losses, they don’t understand why and confidence goes and discipline breaks down.

Others think the cleverer they are and the more computer power they have the more likely they are to win.

Again this is not true.

Computers are more powerful today than the one that Mission Control used to land man on the moon – yet the ratio of traders that lose remains the same – 95%

Don’t be fooled – the key to forex trading success is not the system but the trader and his attitude; discipline is the key just as it has been since trading began.

So you can see the first building blocks are:

Get a simple logical system that can get the odds in your favour.

If you build it yourself or follow someone else you MUST know how and why it works or you will never acquire confidence in your trading system.

If you don’t have confidence that it will win eventually, you won’t have the discipline to follow it through losing periods – it’s as simple as that.

Today traders think someone else can lead them to success.

They need to learn that no one else will make them successful – only they can make themselves a winner.

Others are duped by vendors telling them they can make a regular income or pick tops and bottoms with scientific accuracy – Rubbish! If only trading were that simple.

If all those trader claiming that they could make such great gains really could, they would be to busy trading and making millions to sell it to you.

No trading success and discipline comes from within from understanding flows confidence and from confidence flows discipline.

If you don’t have the discipline to follow your method you have no method!

The above is obvious – but most traders still look for the short cut, the guru or the far out trading system that will make them instantly rich or with no effort – but they all learn a harsh lesson – a wipe out.

If you are not prepared to learn forex trading and get the right forex education don’t bother do something else as you will lose.

The Good News Is:

Anyone has the potential to learn how to trade and acquire discipline but you must do your homework and understand no one else can give you confidence and discipline it comes from within.

So do your homework and learn a system you can have confidence in and discipline will follow – it really is that simple.

 

Trading has always been a money making business that everyone wants to enter into. A person should be cautious enough before joining the trading business and know all the goods and bads of this business. Everyone investing money in this business might not reach the ladder of success, as trading strategies have to be followed to have a positive result in this business. Professionals in the field of trading adhere to the trading strategies to have a organized working in this kind of a business. Trading strategies deals with predefining of rules/steps that do not deviate and these strategies must be implemented in order to have an organized and successful trading business.

With the upcoming of Information Technology there are several online businesses that have come into the market. Online trading business is one such business that has seen a great success in few years. Experts in the field of online trading make use of online trading strategies to make a move in an organized way. Every step in the business of trading should be taken with utmost caution. Different online trading companies have their own strategies according to the need. An online trading website can give you an idea about the kind of online trading strategies set by professionals in the field of trading.

Knowing the current market situation is very important before entering into the business of online trading. A person should be smart enough to know when to join and exit the online trading, as this will help to reduce percentage of loss. Building online trading strategies helps to design a planned action to achieve goals. Referring to the strategies help a professional to come out of a problem easily, as these strategies help a person to show the next step that is required.

For those who want to move into the business of online trading must search extensively to know about the tactics to become a successful professional in this business. Web is flooded with large number of online trading sites that give every bit of information related to online trading. Come across such websites and know about online trading strategies as well to build a perfect road for yourself to follow the path of online trading business.