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12 Replies Last post: Sep 23, 2008 12:19 AM by Mybizfiler

Starting a Home Based Business?

Jul 21, 2007 12:49 PM

gmonkey 15 posts since
Jul 21, 2007

I started making decorative wall hangings for my house some time ago. A visiting friend asked me to make one for their home, and even offered to pay me. I, of course, said no, but then a friend of a friend asked me for one and so on. I think I am on to something here, and was thinking about making this into my own home based business. I am very unsure of what steps I need to take to get this started...after all, I am an artist, not a bookkeeper, accountant, or financial wizard.

What are the steps that I should take to start this business, and what pitfalls can the community help me avoid?

Tags: new_business, start_up, art, home_decor, wall_hanging Report as inappropriate

score81 76 posts since
Aug 6, 2007

1. Re: Starting a Home Based Business? Aug 7, 2007 1:10 AM

Steps to Successful Business Start-up

1. Idea ( Product / Service)

2. Determining need or demand for product/Service.

3. Costing/Pricing your product/Service.

4. Test marketing your product/Service.

5. Protecting your idea.

6. Determining the sales revenue required for Break-even.

7. Determining Return on Investment(ROI).

8. Preparing a Business/Marketing/Financial plan.

9. Maintaining a record-keeping system to monitor business activity.

10. Planning ahead.

11. Maintaining flexibility.

*
Registering a Business

*

Choose Type of Business Organization
Register with The State or County or City
Obtain Employee Identification Number (EIN) from IRS
Obtain Vendor's License (If Required)
Obtain County and City Permits if Required Obtain Zoning Approval if Required

*
Tax

County Taxes# Unemployment Tax# Worker's Compensation Insurance# Sales Tax# Income Tax# Federal Income TaxFor Home business you can simply register the business in the City as DBA and use your Social Security Number as tax id and you are ready to see your product. If it grows then you can expand and change from DBA to LLC or S-Corp. etc.

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SCORE55 4 posts since
Aug 7, 2007

2. Re: Starting a Home Based Business? Aug 7, 2007 10:57 AM

Score81 covered the basics well. Beyond that is the question of what you really want to do with your life.

It is certainly not uncommon for craftspeople to make products during the week and sell them at crafts fairs over the weekend. The crucial question is whether that produces enough sales to make the activity worthwhile and whether the combination of activities is personally satisfying.

Many craftspeople find that they don't have time to both make and sell their product in commercial quantities. Often they turn either the business operation or the craftwork over to others and concentrate on just one thing. That's why craft galleries exist.

There are lots of tradeoffs to be considered along the way. Having a good idea of how much money you need and how you want to spend your days is a good place to start when you consider those tradeoffs.

- Jim

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SCORE63 3 posts since
Aug 7, 2007

3. Re: Starting a Home Based Business? Aug 7, 2007 4:36 PM

This is a great opportunity to convert your hobby into a business. Learn how to run a successful business with this skill set. Next time (and there will be a next time), You will know the steps it takes to startup, build a team, implement systems, and track your progress.

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SCORE108 12 posts since
Aug 6, 2007

4. Re: Starting a Home Based Business? Aug 7, 2007 4:51 PM

As an artist and not a business person I would start small and get into it slowly. Sell to people who see your product and want one, sell at craft fairs and try putting your product into shops on a consignment basis. One thing you will most likely need is to registed for sales tax, unless your state does not have sales tax. The next step could be selling over the internet at Ebay as an example. Take it slow or you will be overwhelmed. If the business really grows you will need professional help for the reporting and tax problems you will have.

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SCORE63 3 posts since
Aug 7, 2007

5. Re: Starting a Home Based Business? Aug 7, 2007 5:07 PM

Start by checking out your competition. Visit craft shops, flea markets, internet sellers. Decide on pricing for your product. Then just start selling, making sure to keep track of all your income, and all your expenses for making the product, including your time, car, etc. You can build your business plan as you are learning to operate your business. Remember that cash flow is the goal.

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gmonkey 15 posts since
Jul 21, 2007

6. Re: Starting a Home Based Business? Aug 8, 2007 1:12 AM

in response to: score81

Thank you for the very methodical approach to your answer...step by step instructions are easy to follow!

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LorieB 3 posts since
Oct 10, 2007

7. Re: Starting a Home Based Business? Oct 10, 2007 5:24 PM

Hi, I have found a Home Based Business that has a wonderful Product you can build a business around. This is a company that has been in business for 20 years and is listed with the BBB. This is a Product that helps People live better healthier lives. We are not out to sell a Product just to help people. Want to know more you can give me a call @ 1-888-813-5032 ask for Lorie, leave your name and number and where you heard about this business and I will get back to you as soon as possible.

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DafnaR 16 posts since
Oct 22, 2007

8. Re: Starting a Home Based Business? Oct 29, 2007 8:25 PM

I have many creative idea for you:
you need to create a static partners plan that you will work with them as a highend kids furniture store , I made a plan to one of my costumers that was a great sucess if you wont some ideas please send me your phone # and I'll call you.

All the best

Dafna

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Ranger6r 14 posts since
Oct 31, 2007

9. Re: Starting a Home Based Business? Oct 31, 2007 2:18 AM

The Small Business Administration has an excellent business planner web site at http://www.sba.gov/smallbusinessplanner/index.html. They also offer very good tools that may be of assistance to you in your planning. Best of all is the price from the experts in small business - FREE.

You might also want to look at https://www.microsoft.com/smallbusiness/startup-toolkit/default.aspx for more help. This site is also uses another well known company as an expert resource - Bank of America (BofA feel free to compensate me at account # ***-*****).

The triple bottom line People - Planet - Profits. Good Luck and Good Business.

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4buspecialist 2 posts since
Nov 1, 2007

10. Re: Starting a Home Based Business? Nov 1, 2007 2:12 PM

in response to: Ranger6r

http://smallbusinessonlinecommunity.bankofamerica.com/people/Ranger6r your answer is very informative! Knowing the resources that are FREE can be a huge advantage to any business owner! Best way to run any business is to know where to extract the information from!

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DeniseMM 8 posts since
Nov 5, 2007

11. Re: Starting a Home Based Business? Nov 5, 2007 12:35 PM

As a marketing mentor, I've mentored over 1,200 people (more women than men) about how to get the word out about your business. Truth is that there are a lot of people who start businesses for all the wrong reasons. They do it because they hate their job, office politics and/or their boss. Or they do it because they want to stay home with small children. Or they say they are doing it because it's "fun" or because they "love the product." These are some of the worst reasons to start a business.

The only reason to start a business is because you want to build an enterprise that makes money. You have to love the idea of building a business. That's it. It's good to love what you do or love what you create. It's good to have passion about it. And, it's not realistic that you'll be passionate about ALL of it. But don't get mixed up about the purpose of a business.

For women - the part they tend to absolutely hate the most about their business is marketing and selling. So much so that I wrote a whole book about it. Women often feel overwhelmed and totally out of sorts when it comes to the marketing and selling part. One of the taglines that gets the best response for me is, "Does the thought of marketing and selling in your business practically drive you to chocolate?" So, you can tell - it's not a little thing. There are many women who are so uncomfortable about this - that they would rather fail rather than turn into a pushy, used car salesman type. What they don't know is that there are ways to market and sell very effectively that work with your style as a woman.

Think about what you would actually be DOING as a business owner. The creating? Sure, that's your love as an artist and a creative person. But what about the selling, the marketing, the paperwork, the numbers - and on and on. Still sound like fun? Then maybe being a business owner IS right for you.

All the best,

Denise Michaels

Author, "Testosterone-Free Marketing"

PS: Visit me online at http://www.mentoringwithdenise.com

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Mybizfiler 35 posts since
Aug 20, 2008

12. Re: Starting a Home Based Business? Sep 23, 2008 12:19 AM

Hi,

You can form a LLC (or C Corporation, S Corporation, LLP, & Trust) without doing all this research. It's not worth all the time you spend for a task which firms like ours (mybizfiler) charges close to nothing. Visit us at ICS website ( http://www.mybizfiler.com/ ), you can get complete end to end services for forming a Corporation. You can any time raise question on the live chat available round the clock and are able to provide answers for your question. You can even post your questions to sales@mybizfiler.com or can contact at 203-437-4083 for further information. We also post informational posts on our blog - http://www.mybizfiler.wordpress.com/

The check list to form LLC:

Ø Name Search
Ø Articles of Incorporation / Articles of Organization( in case of LLC)
Ø Registered Agent Services
Ø EIN
Ø Corporate kit ( Corporate Seal, 20 Stock Certificate, Stock Transfer Ledger)
Ø Certificate of Good Standing
Ø Foreign Qualification
Ø Corporate Bylaws
Ø Maintenance of Corporate Minutes
Ø Shareholder Resolution

Important Links

Disclaimer: ICS does not offer legal services or legal advice, but only generic information on legal subjects. ICS is not an attorney or law firm and not a substitute for an attorney or law firm

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Starting a Home Based Business?

Jul 21, 2007 12:49 PM

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