Part 2 of 5 on home business setup guide
Dear reader,
These articles will provide a step by step guide on how to start and run a home business based on my experiences and other home business owners. This is part 2 of a series of 5 articles. They are written in a basic format and, where possible, the main points are summarized in an attempt to be understood by all. I have tried to minimize technical jargon as much as possible.
So let’s jump in and see what we need to know about starting and running a home business.
Greetings,
Alvin
http://www.parttimeincome.org
I publish Home Business Tips, a fresh and informative newsletter dedicated to supporting people like YOU! If you’re looking for the best home business opportunities, the latest time-saving tools, and helpful support from a friend in business, stop by and get a FREE subscription today at: http://www.parttimeincome.org
Legal Structures
The legal structure of your business is very important as it is based on the obligations and the tax deduction. The most common structures are:
§ Sole Trader
§ Camaraderie
§ Business
§ Confidence
sole trader
When you are a sole trader, you are personally responsible for the business and its activities. You can usually start out as a sole trader and as you expand you will need to find partners or investors. Your accountant is the best person to advise you if this is the best structure for your business.
camaraderie
This agreement is where you and your partner are responsible for anything related to your business. It is a very good idea to get a lawyer to write a partnership agreement to avoid disputes in the future.
Business
It is a legal entity responsible for the debts it incurs and the payment of income tax. Your accountant can help you set up a business, or you can buy an off-the-shelf one, which can be more profitable.
Confidence
Depending on your personal circumstances and the country you live in, trusts can be useful in business and estate planning. They can be quite complex, and again, your accountant is also the best person to talk to.
Registering your business name
You can operate a business under your own name or register a trade name. Registering a business name allows you to operate under that name.
Select a name for your business that describes to your customer what you do. A descriptive name promotes and advertises your business more effectively.
Licenses and permits
Depending on your municipality, you may need licenses and permits. Do the right thing and check with your local council. Doing the right thing now will save you a lot of unnecessary work later.
Sure
Often overlooked, insurance is an important part of your risk management plan. There are two types of insurance: general insurance for property loss/damage and risk insurance, which is the coverage of your personal insurance.
Make sure your business insurance is separate from your personal insurance.
To establish the type and amount of insurance you need for your home-based business, consult with an insurance broker.
risk management
You must have a risk management strategy for your business. Your SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis from article one will show what could expose your business to loss and what actions to take to reduce those losses.
Marketing
As a home business entrepreneur, you need to understand what your customers want and give it to them. You must strive to have a service or product that meets and exceeds the needs and expectations of your customers. This is what makes them come back to buy from you, and this is how you increase your profits. Try to think like your customers and you will discover that they want:
§ Satisfaction
§ Value for money
§ Performance
§ Reliability
§ Presentation
Don’t confuse marketing with selling. In a home-based business, marketing is much more than that and involves all aspects of the business: pricing, advertising, customer service, and sales.
marketing mix
Communication with your customers is essential and develops the framework for your marketing strategy. You need to tell your customers about these important pieces of information
§ Product: Describe it in full detail, its special features and of course how it will benefit the customer
§ Price: explain your pricing strategy, don’t forget to consider your costs, the discounts you will offer, payment policies
§ Promotion – choose the most effective for your type of business. If you don’t know, think about what you would prefer if you were the customer. For example: telemarketing, brochures, email campaigns
§ Place: where your product will be so that customers can find and contact you. How will you deliver the product to your customers? You may need to consider getting a website.
the image of your company
Even if you’re running a business from home, make sure your office is comfortable and has a professional appearance. Your website also needs to project the same kind of professionalism.
To lease
Your home based business needs its own dedicated area. Very often, the living and working areas are confused into one, which does not allow you to distinguish which is for work and for play. Keeping them separate is essential to running a home business. You need to make sure that all family members understand it too.
A telephone is essential in your home office as it will be the first point of contact with your customers. It is essential to install a second telephone line separate from the personal line along with a mobile phone, an answering machine and a pager. Talk to your telecom company, very often they have some great packages suitable for small businesses.
furniture and equipment
Choose furniture that is comfortable and professional. This helps distinguish this area from the rest of the home.
Your office needs equipment and here are some to get you started:
§Computer
§ Meats)
§ Desk
§ Fax machine
§ File cabinet
§ Mobile phone
§ Telephone
§ cooling heating
§ Turning on
I hope this article has put you on the path to building your own home business and empowered you to reach your financial destiny.
In the next article, I’ll cover some of the ins and outs of operating a small business from home.