We all have the dream to eventually work from home one day. We have longed for the days of working for ourselves with no boss to answer to and no more 9 to 5. With the beauty that is the internet, a home-based business is within reach now more than ever.
There are several important steps to setting up a home-based business. But before you get too ahead of yourself, you must consider the necessary steps it takes to creating a successful, work from home foundation. Here are the top 5 tips on creating a successful home-based business:
Choose a Business Structure and Name
Before you begin, choose a business structure for your new business. The following are available options for you:
- Sole Proprietorship
- Limited Liability Company (LLC)
- S Corporation
If you are unsure as to which structure you fall under, hire a business lawyer to determine your personal and business needs.
Select and Create Your Working Space
This is an imperative step to setting up a successful work-from-home atmosphere. Select and create a space in your home free from distraction. Whether a full room or a small, dedicated space, purchase a desk, computer, printer and live internet connection.
A place away from common areas is the best bet to ensure an efficient working environment.
Open a Business Banking Account
When you are ready to begin working from home, open a business account devoted to your business finances. Many people believe a personal banking account will suffice. This is not correct! Come time for tax season, if you run the risk of being audited, it will be hard to prove what income and expenses are considered personal and what is business-related.
Having a business account also makes it easier to keep track of profit and losses.
Design a Business Plan
Before you go live, design a business plan. Consider your budget, your mission, your product and/or services you offer. Develop a market strategy and analysis of how you plan to operate your business as well as a market analysis.
Decide what makes your product/service unique compared to your competitors. Conduct a financial analysis based on what your goal numbers are whilst filtering in your profits versus losses.
Once all of the previous steps are in order, it is time to open up shop! However, there is one last vital step. Research what your state laws are regarding what kind of permit you need to work from home. You can visit your local government to file your business and register as a legal business entity.
If you are looking to be self-employed in California, contact Richard Greenbaum, Esq. today! Mr. Greenbaum is a reputable small business attorney specializing in the formation and execution of successful small businesses in California.
Mr. Greenbaum handles all necessary legal paperwork, legal advice and procedure in addition to the day-to-day operations of your home-based business. Call him today to discuss setting up your new career!