Working at Home on the Internet

WAH Tip #2 Form a Business Plan

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Ok, you have decided to start your own Business. You know a lot, maybe even more than your old boss, about your line of work. Now What?

You need to think through what you want to Do with YOUR Business. You will have to ask yourself some important questions and then find the answers.

Some Questions to Ask Yourself:

• How do you get clients/customers?
• How do you bill them?
• Can you handle the accounting yourself?
• Do you need employees to perform some of the tasks involved?
• How do you pay the bills until the money starts rolling in?

These are only the most common questions to ask yourself BEFORE you go out on a limb and Start You Own Business.

Some Additional Important Considerations:

Set Priorities… After you have asked yourself some, if not all of these questions, you need to consider what you feel are the Most Important things needed to get started. Create a List of the Pros and Cons. List out all of the advantages of going into business for yourself. Then List all the Disadvantages of going into business for yourself (believe me, there are plenty). After going over your list, make a New List putting things that need to be accomplished at the top and work your way down to things that can be done when you have the time.

Finances… How are you going to finance your operation? Equipment and rent for office space (think heat, electricity, phone) cost money. If you have employees, they need to be paid. You also have to consider your regular living expenses and incidentals (like coffee). Plan on paying yourself a salary, don’t just take money out of the till. Be sure to set up Separate Banking Accounts for the Business, if you co-mingle funds, they All become Taxable.

Taxes… This is something you can’t put off until a later date. When you set up your Business Account, be sure to keep enough to cover any taxes you may have to pay. Find out and deduct from the very beginning whatever taxes you may be responsible for, including Business Tax, Sales Tax, Local Tax and even Payroll Tax. If you work online, you have to consider taxes in the area your customers reside, you may be responsible for them too.

Licensing… When you work from home you need to check with your local authorities to see if there is any special license you need to run a business in your area. The best place to find information is with your local Chamber of Commerce or Zoning Commission.

Once you have answered the above questions, you should be ready to get your feet wet. Take the plunge so to speak. So stay tuned every Monday for more Work at Home Tips about things like Advertising, Networking, Home Office Setup and much more.

If there is anything you think I left out in ways to Form a Business Plan, please let me know in comments.

July 23rd, 2007 at 06:45am | Posted by Joe | Tips, Work at Home | 3 reader remarks | Print This Post