Before You Start a Home-Based Business – Part 2
In part one of this blog post we talked about how to determine what type of business you want to start, what you were passionate about, did you have a space to work, did you have the equipment that you needed, and how much money would you need to invest to start your home-based business. If you went through each exercise, you should already know what type of home-based business to create.
So, let us get into the next steps. Before choosing a name for your home-based business, check with local authorities to see if there are any rules, regulations, or restrictions for operating a business from your home. This can be as simple as a phone call or internet search for your town’s regulatory policy. I always made a personal visit to city hall to ask these questions. Speaking to someone face to face can be beneficial in building goodwill and spreading the word about your new business.
Next up – a name. Finding a business name can be as challenging as you want to make it. I recommend listing about 10 or 15 key words that describe your business. The words have a general theme that will help you create a name. You may think the name you decided on is unique but verifying that fact is a must do. My state requires that you register your business name to get a tax identification number. This number is important because you will want to file for tax exempt status. When you register, they may tell you that the name you have chosen has already been taken, so have an alternative. I would also do a Google search to check on the chosen name especially if you plan on blogging, publishing, selling products, etc.
You are ready now to create a logo that customers will recognize you by. As simple as a stamp or hand drawn emblem a logo says what you are about. There are internet platforms like Canva where you can design your own logo, business cards or advertising banner. There are two versions of Canva, and the free version should be sufficient for you to create a logo. There are lots of tutorials on how to create a logo in Canva so search YouTube or Canva itself for instructions on how to create your logo. I hired an incredibly talented company to create my logo.
This next bit of advice in not popular with anyone but is a very necessary step. Hire a good accountant. Most CPA’s will have a set fee for your first “get acquainted meeting.” Go to the meeting prepared with a list of questions about your business so the time is used efficiently. Take a copy of your business plan for him to review. The accountant can advise you on the best structure for your business and the tax laws in your state / local area. They can also give advice on what is legally tax deductible for your type of business. The fee is well worth it.
After the accountant, you need to call your insurance agent. See if you need insurance for fire or theft of your business. Does your homeowner’s policy cover accidents that a customer may have while visiting? Could this be covered by adding a rider to your existing policy? If you are going to be making products either sold in the United States or an international market, you may search for an insurance broker who handles those kinds of policies. While we are talking about compliance to rules, if you are making a handmade product or a food product you need to check the government website for regulations regarding proper labeling of your product.
I would suggest that you start a Facebook and Instagram page under the business name. Tell all your friends on your personal page about the business and ask them to like your business page and share the news with their friends. This helps push awareness to other people outside your immediate circle and lets them see what you are about.
These are only my suggestions for what to do before you begin based on my own experience. Remember I graduated from the school of hard knocks because I did not do any of these steps right the first time. Whatever step you are in on your journey creating a home-based business, I pray that you are creating your own good life along the way.
