How to Plan to Start a Home Business

• Step 1

  Decide what type of home business you would like to start. There are many businesses you can run from your home, such as freelancing, selling goods through a website, selling on Ebay, or running a website.

• Step 2

  Set up your home office. You will need a computer with internet access, a fax machine, a business telephone, a comfortable working space, and some basic office supplies. Keep a notepad and pen beside your phone so you can jot down notes during important phone calls.

• Step 3

  Set up an area to create products, store products, or ship products if it applies to your business model. If you are selling items on Ebay or through a website, you will need space to store items and package them for shipping. If you are creating your own products, you will also need an adequate space where you can create goods. For example, if you are making jewelry, you will need a well-lit space with a large table and storage for your supplies.

• Step 4

  Determine if you will need any permits from your local municipality or state government to run a business from your home. You may have to submit an application to your local school district so that they can be sure they're collecting the appropriate amount of taxes from you.

• Step 5

  Make an appointment with an accountant to discuss setting up an accounting system. As a business owner, you may be subject to self-employment taxes. If you are generating passive income, you may not have to pay self-employment taxes. Have a solid system in place for keeping track of your income and expenses before you start, and record keeping will be much less of a burden on you. You can try using accounting software, such as QuickBooks, to simplify the process.

• Step 6

  Create a plan to manage your time. There can be many distractions when you are running a business from your home, such as your children, housework, doing laundry, and going to the kitchen for snacks. Make it clear to your family and friends that you will be keeping regular business hours, and that you will be working during that time.

• Step 7

  Obtain any other licenses or permits that you need, dependent on your business and industry. If you plan to sell life insurance from your home, for example, you will need to obtain a life insurance sales license. Conduct your research in advance to be sure you're working in accordance with all applicable laws.

• 2
• Space in your home for an office A computer and other office equipment
• Space in your home for an office
• A computer and other office equipment
• Learning to work from home and running a business is different for everyone. Being flexible will help you get over the rough spots during the first few months.
• Learning to work from home and running a business is different for everyone. Being flexible will help you get over the rough spots during the first few months.

References & Resources

• QuickBooks
• Home Office Deductions
• Home Business Ideas