Plan a Business: What Does It Take to
Plan a Home Based Business
How many times have you, or someone you know, said something like "I've always wanted to start a business of my own. Something I'd really enjoy doing is being my own boss."
Lots of people have the dream, but they get bogged down in the details of how to go about it. While this information isn't meant to serve as a complete business start-up plan, it will give you an idea of some of the steps involved in planning a business and getting it started.
Passion is the number one most important aspect of planning a business and getting it started. If you love the products and services you will be providing and your goal is to help people, you are on the right track. Then in your "deep down in your gut desire" you are excited at the core of your being, proceed. Do not look back. Learn to ignore the people who say it can't be done, your friends and family who don't want to see you fail, and the monkey chatter of fear in your own head. Ignore it all and JUST DO IT! Remember, you must continue with personal development during the planning and operating of your business in order to be really successful.
Before You Start a Business, Think it Through!
Starting a business can give a person the greatest control and income, or it can be just "Buying a Job" that is stressful, overwhelming, and costly. This page is the Short Version for people who want the best resources quickly without doing hours of research. You can be coachable or learn from "The School of Hard Knocks." Most people who "Start a Business" do not understand what is involved to make money. Many are operating on the concept that anyone can build a business, but fail to learn what they need to know. That usually refers to NOT learning about running a business no matter how great your products or service is for the customer
Planning a business involves TWO ASPECTS and both are equally important!
1. Products or Service Provided to the Customer - This involves products people want to buy or a service that helps others and for which they are willing to pay you. Many people believe this is what matters, but it is only half of the equation.
2. Business Skills - This is EXTREMELY IMPORTANT and more businesses fail because of not paying attention to these skills than anything else, in my opinion.
First, ask yourself this question.
How much time, education, and experience did it take for you to learn what you needed to know in order for you to do what you currently do?
There is always a learning curve depending on what it is that you decide to do. Commit to your business at least for a year, but preferable more. Lots of people start a business, work for a few months, get discouraged, quit, then start over and can never find the "Perfect Business". Guess What? You take you where ever you go and if you are always quitting before you learn what you need to know, there is no perfect business. Planning a Business does not make any difference unless you are committed to succeed.
1. Hire Professionals
If you are starting a home business, get help at setting up a business by contacting the Chamber of Commerce and find out what local resources are available. In many communities there are people who will sit down with you and help you plan a business. Sometimes you can get help from business owners, but do your own research and get information from more than one source.
The most important professionals you'll need at the beginning are a lawyer and an accountant. The lawyer can help you decide if you want to be a corporation, partnership, sole proprietorship, or some other type of company. A good accountant can help you make this decision based on which will be most advantageous to you from a tax standpoint. A lawyer can also help you register your business and get any licenses and permits you will need, and can advise you about patenting your idea or protecting your intellectual property by requiring everyone you discuss your business with to sign non-disclosure or confidentiality agreements.
If you are starting a home business that is part of a large company, most of the legal work has already been taken care of, but it is your responsibility to understand and know all of the legal aspects. Don't let it overwhelm you, just check it out and know where to get answers, if you need to do so.
2. Make a Business Plan
You may need to hire a writer or other business professional to help you write a business plan, but there may be an organization in your community to help you with little or no cost. You'll need a business plan to help yourself get organized as to what your business's main purpose or goal will be. You need a business plan that sketches out how you will proceed toward your goal and an estimate of how much money you'll need to get there. What will your equipment costs be? Will you be hiring employees? How about renting office space if your home is not conducive to a home office? All of these cost estimates should be included in your Business Plan.
3. Get Financing
How much start-up money will you need? Do you have savings you can use? Friends or business associates who might want to invest in your venture? Or do you need a bank loan? Whatever the situation, you'll need to present a copy of your business plan to bankers or investors if you need to borrow money to get your company rolling. Other ideas to plan a business and help you start a business are available below.
4. Set Up Your Record-keeping System
A good accountant can advise you on the best record-keeping software when you plan a business, and help you set up a system for keeping track of payables, receivables, sales tax, and other important information as you plan a business. You will be relying on the accountant for at least your yearly tax return for your business, and possibly for quarterly payroll and sales tax returns. Your accountant can also get you an EIN number (Employer Identification Number).
5. Find a Location
Depending on your business, location may be very important. If you need to be visible to the public, then you'll have to think long and hard about where you should set up shop. Location can make you or break you, and the rent is due no matter which way your fortune turns. This is not a problem where you plan a business you can work from home. You will also need to get a phone, get the utilities turned on, install your furniture and equipment, and get a sign or two that shouts "Hey look! We're here!"
When you work from home, you will need to evaluate what area of your home you will use when you plan a business. You will probably want a special phone line for your business, although in this day and age with cell phones and Skype, that may not be necessary. Some people just have a lap top and a cell phone and work from where ever they are, like the park, the beach, or anywhere on vacation.
6. Set Up Accounts with Credit Card Companies
Every brick-and-mortar business these days takes plastic or they don't stay in business. This is also true with most home based businesses. You'll pay a small percentage for every credit or debit card transaction a customer makes. You will need to invest in a method for checking the validity of debit and credit cards-like those "Slide Card Here" machines at cash registers everywhere. These are very important steps when you plan a business.
7. Hire Employees
You may not need to do this step if you're a one-person operation. Maybe you can get by with just one part-time person to answer phones and do some of the paperwork. Of course, it depends on your business. You can probably run a small bookstore by yourself, but even a tiny restaurant means you'll need a cook, several servers, someone at the cashier, and so forth. You'll need to have them complete various forms for the IRS, and you may want to run background checks or at least check some references before you hire anyone.
8. Promote Your Business
Decide how you will let people know you exist as you plan a business, what you can do for them, and why they should come to or call you instead of someone else. Common forms of advertising are Social Media, TV and radio commercials, newspaper ads, flyers, and coupons that appear in booklets distributed by local companies. As times are changing, adjust to your market. Know what works and doesn't.
The list above might make you think twice about starting a business of your own. Perhaps you aren't looking to make such a financial commitment regarding the hiring of professionals, finding a location… And it's also a big, big risk.
But let's look back at the way this article began: "I've always wanted to have a business of my own with something I'd really enjoy doing. I want to be my own boss. "YOU CAN! Without all of the headaches of traditional business.
Online Business Oppportunity
There is a very simple way of attaining this goal that has worked well for millions of people. Plan a Business. You can have your very own business in your home, and you can cross off all or most of the steps listed above. The best part of exploring home-based business opportunities is that there is little risk and the upside is tremendous. Promoting your business can be done in the same way as a traditional business, but for a very small cost, you can advertise on the Internet and advertise using Social Media for free. This is the area of business that is growing at a very rapid rate.
Many of the inconveniences and pressures of the traditional business are wiped away with the home business. The biggest roadblock to starting or buying a traditional business or a franchise is that they require a considerable up-front cash investment. In addition to the large investment, the time commitment you must make when starting a business can ultimately turn out to be far greater than what you have experienced in any job, and the return is not necessarily worth the extra time or the financial risk.
Plan a Business working from home and you will have more freedom than you ever imagined with a much smaller investment and you plan your day to day operation around your life instead of planning your life around your work!
Study the Concept of Business
Before getting really serious, read the "bible of good business" The E Myth Revisited. This book will give you the perspective needed to make some serious money, if that is what you want to do.