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home business start up

When you work at home, it can be tempting to postpone activities that would result in income until you have a perfect office set up. Don’t postpone earning money from home but do set up a simple, functional office for your work.

Office Space

Everyone needs a physical location to serve as the “command center” of business action. The basic requirements for a work space are a flat surface for writing and room for an in-tray. If you don’t have a dedicated (not used for anything else) and functional workspace with an in-tray, get one now.

To get started in your new home business you will need two kinds of “office”: your functional work space at home and a portable system that you can take with you. In time, your work space will probably expand to include a phone, a computer, stacking trays, working file drawers, book shelves for reference books and media. Some will also need a fax, a printer, a VCR/DVD player and/or multi-media conferencing equipment. For people who travel, a laptop computer will seem like a necessity.

The Simplest Start

You can start to build your business with the simplest work spaces: an old door on top of two, 2-drawer filing cabinets (one at each end) with three stacking trays on it, a legal pad and a pen and access to your phone. You could start with one end of your kitchen or dining table and a plastic filing box, a phone and a pad of paper and a pen. You will need a satchel or a backpack or some other way to “take the show on the road” carrying a few folders and your Productivity Tools.

Your 21st Century Home Office

In this day and age, if you want your home based business to be a modern business with communication by email and marketing and ordering online, you will need to take stock of your office set up and plan to update your equipment and skills as needed. It is possible to conduct business from a distance which makes your business “portable” e.g. you don’t have to be in your home office to take care of business. You are free to travel and to work any hours of the day (or night) that suit you. However, don’t let anyone convince you that you’ll be able to do this without up-to-date technology. Begin to plan for the gradual building of your truly modern and convenient office and communications systems and skills.

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Earn money at home by paying attention to getting off to a good start with financial basics.

Your Recording Keeping System

Your financial records are the voice of your success. Good records can do two things for you:

  • Tell you whether or not you are achieving your goals step-by-step, by telling you whether your business activities are giving you a financial return on the time you invest in them.
  • Keep you organized

Financial Files

Keep your financial files separate from the rest of your filing system. Keep your business files separate from your personal financial files.

Start with one "Business Financial" file and keep all financial paperwork in it as it comes in: bank statement, receipts, bills, etc. Make a date with yourself at least once a month to reconcile your bank records and track your business expenses. When the month is "closed", put it all in one envelope and label it for the month.

At the end of the year, you may want to file your receipts according to the types or categories of business expense but if you use an electronic system like Quicken, just make sure that for each entry you categorize your expenses. (This system works well for your personal finances, too, as long as you keep a separate folder and separate bank accounts.)

Banking

Set up a separate bank account for your business to keep your business finances separate from your personal finances. Look for a free checking account for small business with a debit card (if you like the convenience of a debit card). Keep your check register up to date.

If you will be using a credit card, apply for a separate business credit card and look for one that will send you a detailed categorized statement at the end of the year.

Taxes

If you need tax advice it is best to consult someone qualified in your state to help you. When you are just getting started, make sure to have a “My Business” folder and file some essential pieces of information:

  • a business plan,
  • some records related to using your car and mileage records,
  • a marketing plan.

So, now you have two files, minimum: "My Business" and "Business Financial".

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New Home Business First Steps

January 24, 2010

First Steps for a New Home Business is your 5-email series gift when you sign up for the Simply Home Business News.

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Home Business Start Up: Is it time for yours?

January 22, 2010

A home business start up may be your best response to an ailing economy and an opportunity to join the New Economy. Paul Zane Pilzer’s views are expressed in The Entrepreneurial Challenge.

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Why Choose a Home Business?

January 20, 2010

“We’re in the midst of a boom in home-based businesses, and it shows no sign of slowing. More than one out of every eight U.S. households contains a home-based business. In 2000, more than 50 percent of all small firms were home-based businesses, and they generated about 10 percent of the nation’s entire economic receipts.” ~Paul Zane Pilzner

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