Deciding to open a home business is an exciting experience. Every entrepreneur dreams of being the boss, managing their own company, and making a fortune from their efforts. However, manifesting those dreams into reality requires planning and hard work. If you’re thinking about opening a home business, read through this checklist before pulling the trigger on your launch.
Do You Have the Passion?
It all starts with desire. The author Napoleon Hill penned these famous words in the 1950’s. Essentially, the “secret” mentioned in Hills famous book, “Think and grow rich,” boils down to this one concept; it all starts with desire.
Your desire and passion for your business will determine the levels of success you will achieve with it.
What Will You Name Your Company?
Choosing a unique name that hasn’t been thought of already is a lot more challenging than you think. Do you want a name that describes your businesses function, service, or product? Or how about a more abstract name?
It’s important to factor in the online expansion of your business as well. Check with your local registrar and online domain provider to ensure that your name is available for both the online and offline world.
Open a Business Bank Account
Keep your personal and business finances separate. It’s essential to open a business bank account and do it with another bank, other than the one you use for your personal account. This separation helps you during tax season and assists your accountant in preparing the paperwork for both your personal and business tax return.
Establishing a business account starts a track record of your business activities with the bank. This record is critical when it comes time to open a line of credit to expand your business in the future.
Hire an Accountant
An often overlooked component of starting your business venture. An accountant will keep track of your expenses, income, and overheads.
It’s easy to lose track of things when you are trying to balance sales, operations, and finances all at the same time. The more you can do to delegate essential tasks like your finances, the more time you will have to spend on other vital areas of your business.
Create a Company Structure
What kind of legal entity best suits your home business? Will you register a sole proprietorship, a limited company, a partnership, or joint venture? Select the best entity for your situation by asking your accountant for advice. The type of legal structure you choose determines your tax threshold and your limit of personal liability for the company’s operations and finances.
Find Your Customers First
Many entrepreneurs decide to open a business, purchase stock, and hire employees before they ever get a single customer. This error has enormous consequences that will hurt the growth of your company in its launch phase.
Before you open your doors for business, start prospecting for customers. Compile a customer database of local and international sales prospects. Look for opportunities to license your products and set up partnerships or affiliate programs in other countries. If you don’t have any customers, then you don’t have a business, so start from there first.
Create Compelling Marketing Materials
Use your marketing materials to stand out from your competitors. Include brochures, flyers and promotional materials like stickers, and business cards. If no one knows you exist, then you’ll struggle to get new prospects into your business. Breakthrough obscurity by using professionals to design your marketing materials. Use a professional distribution service that guarantees an ROI.
Your home business needs an online presence as well. Build a website and populate it with compelling content. Open accounts with all the social platforms and start building an audience and engaging with your target Market.