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Making Preparations With Your Home Based Business

Aug 14, 2008
Owning a Home based business is one of the most rewarding things you can do with your life, but it requires a lot of hard work and doing research. Most people perceive home businesses as easy and convenient, but it is not easy at all. If you do your homework you will easily avoid most of the common mistakes made by people who will fail at home based business.

The first step is to decide what type of business you're going to do. What product or service are you going to sell? You need to make sure you've got an idea that your target audience will feel is indispensable--because if they think they can do without your gadget, they probably aren't going to buy it. You need a marketable, in-demand product or service to sell, or your business will probably not get off the ground.

Secondly, from where in your home do you expect to run your business? It will take space to operate a business, so using the living room as your home office means that you're essentially kicking your family out of it. Try to estimate the amount of space you'll need, and make sure you settle your business in a location that's good for you, your family, and your clients. This is probably an area where you'll need to consult a legal expert to fill you in on tax laws. How much space can you deduct for business use? Your local zoning board will have information on the permits you need to make such deductions.

Now you have your permits and you know what you are going to sell, next make sure you know what you must charge to make a profit. Many home based business owners make the mistake of thinking they don't have much overhead so they price the product on the low side. Make a list of everything from a percentage of the mortgage payment and taxes to the cost of the hour you take to clean the office once every few weeks. Figure in utilities (don't forget the extra phone, fax and internet services you will need), furnishings, office supplies and equipment, even the cost of maintaining your drive way if clients will park there. Usually, the over head in a home based business is higher than you think. Price accordingly.

Now that you have decided on your prices, you need to decide what hours of the day you're going to work; even though you work at home you can't be calling people whenever you want. So your home business operation hours must be convenient for the customers, preferably the same every week so you can be consistent and people don't have to wonder if you will be open at a certain time. Try not to let the answering machine pick it up always because if you never answer your phone they can easily go get your service elsewhere. One of the main parts of working at home is being an excellent customer service person and if you can't provide that you will most likely fail.

Now, tell me how your family is going to respect your business hours and not bother you while you work. Good Luck. I know it can be done, but you will have to communicate well with your family about what is acceptable and what is not. Some home business owners have a suite with a separate entrance that is not connected to the inside of the house. This works well, the family has to go outside and knock on the door to speak with the business owner during work hours. However you achieve it, the understanding must be clear that when you are working, you are working.

Last but not least, have a back up plan for what you will do when your successful business out grows your home office. When will you have to hire an assistant to help with the administrative tasks? How will you accommodate growth? When will you know it is time to move to a commercial space? How will you make the move with out disruption of your business? Just a semi-lucid plan B in the back of your mind will do for now. As your business grows you can solidify your plan and be ready if and when the day comes.
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Become an EDC Diamond expert by utilizing an ebusiness marketing strategy that will pile endless amounts of cash into your bank account.
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