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4th Feb 10
Before starting any business you must know exactly what is needed. Here are the Steps to Setting Up a Home Based Business:
- Research what type of business you not only would enjoy, but one with enough profit potential
- Check your city and county licensing and zoning requirements, then make sure you meet them all to avoid future problems.
- Establish a routine for keeping strict records of all income and expenses right from day one. Keep all business related receipts, invoices, client records, bank statements, bank deposit slips and canceled checks.
- Get an accountant. Their advise is invaluable to help you set up your books and records correctly from the start. They will help you determine home based business deductions so you can plan your business expenses.
- To get a home office deduction on your taxes, you must set aside a particular place in your home that is strictly used just for your business. Make sure the space is relatively quiet, away from regular household noise and comfortable enough to spend lots of time in.
- Have a phone installed that is separate from your residential line and strictly used for business. Sign up for a mail box on the phone line to take calls when you are out or unavailable.
- Get a post office box to use on your official stationery and other documents.
- Hold client meetings in rented conference rooms or set business meetings in good restaurants.
- Set up a Merchant Account so you can accept credit cards.
Credit card services or merchant accounts charge a monthly fee, per transaction fees and a few other fees. If you are just starting out, you are better off going with one of the online services, such as PayPal, Amazon or Google Checkout. With these services, you eliminate the monthly fees, but pay a slightly higher per transaction fee. If you are only doing a few transactions per month to start, this is a less expensive way to go.
These are the steps to setting up a home based business. Follow them and you are on your way to success.
