It sounds like a dream. Wake up in the morning, leisurely pull on your bathrobe and shuffle to the kitchen to start brewing a pot of coffee. From there, you move towards your “home office” (also known as the second bedroom), fire up the computer and log on to your e-mail program to find numerous promising client inquiries.
Home-based entrepreneurs may be justly rewarded in due time; however, this rarely happens overnight. And don’t necessarily believe anybody who tells you otherwise. Becoming an entrepreneur is an arduous process with many steps required. The following tips are just the very basics:
First, write up a business plan. Take the time to initially create and develop your home business on paper. Describe your product or service. Analyze your competition. List your strengths and weaknesses. Consider all marketing opportunities. Find your niche. Budget your expenses. Overlooking a business plan is one of the most common mistakes made by first-time entrepreneurs. Errors made on paper are far easier to correct than those made in the real world. For more information on writing a business plan, take a look at http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.HTML.
Next, consider your aptitudes. Are you self-confident and a risk-taker? Complete a self-test (just click on the website link below to access one such on-line test). There are no right or wrong answers to these questions; it is important that you answer honestly.
http://www.communityfutures.com/CMS/Entrepreneur_Test.15.0.HTML
Now, evaluate your home and family. Will your new business conflict with any home responsibilities? Bathing the baby while taking that important conference call doesn’t always work.
Register your business name and decide how you will operate. Most often, entrepreneurs can choose between sole proprietorships (you and your company are one in the same), partnerships (you and another individual) and incorporations (you and your company are separate legal entities). Sole proprietorships offer entrepreneurs the least amount of legal protection while incorporations provide the most shelter. Talk to an accountant about these options and how they further differ before deciding which is best for you.
A business license and an appropriate tax account are also required prerequisites. Know that the cheques won’t just start magically appearing in your mailbox … you will have to actively promote yourself and be prepared for some difficult times ahead. Of course, there are benefits as well. Just who doesn’t like the idea of working in a bathrobe? Further recommended reading includes the following:
http://www.rileyguide.com/steps.HTML
article by Rick Lauber is a published freelance writer whose work has been featured in numerous newspapers and magazines. When not writing, Rick enjoys visiting his favourite second-hand CD stores, taking long walks and playing pool. rlauber@canada.com.
