Checklist Before Starting a Home Based Business

It's time to start a home based business, but how do you know if it will be the right one for you? What are some of the things you should consider before making this investment? If you've been thinking about starting your own business but haven't really gotten started yet, this checklist is here to help provide an overview of what tasks need to be completed before your start.

Stocking Inventory

If there are any items that need to be purchased to stock inventory, it is advisable to get these purchased and on hand before beginning a business. If items aren't available because of a lack of funding, it could slow the process of selling your products in the future. Supplies for craft and other hobbies will vary, but should be explored prior to starting out so you are prepared when it comes time to sell.

Business Cards and Stationary

A professional business needs professional looking business cards. This should be at the top of any home business checklist before starting. Little touches such as personalized stationary, envelopes or bags can all add up in a positive way when potential customers notice the extra effort put into their customer experience. If you are unsure what your business name should be, check out the resources that are available through the Small Business Administration .

Business Plan

It is advised to create a business plan. Potential customers want to know how, who and where your company will be run. This can be a touchy subject for some people who don't think a plan is necessary; but if you are being honest with yourself, it will help narrow down things like how you plan to monetize your venture and any potential pitfalls that may exist. 

There's no need to get bogged down in the details of a formal plan if you haven't done this before. A simple outline can be just as effective. You can always create a more detailed plan if you decide that you want to expand your business in the future.

Business Licenses and Permits

Some businesses need to obtain their own special licenses or permits that let them operate legally and/or give them permission to conduct business in certain areas. Some of these include things like sales tax registration or insurance. 

Make sure you know what licenses, permits, registrations and/or approvals your home based business needs before getting started so there are no issues later on down the road. There's no sense in starting a home based business if it is illegal before your first sale has been made.

Business Insurance

Your home based business needs to have insurance protection. There are different types of insurances for all sorts of businesses and it is important to do your research on what coverage your home based business will need to legally operate.

Check out this list for a general idea of the various insurance policies you will need to cover your home business. 

Business Plan Online can help you, whether you need help writing, submitting, or managing a small business plan. 

Return on Investment

Once the business is set up, it needs to make a profit. It can be a long and tedious process of planning out various strategies, building the online presence of your business and marketing to get customers in the door. If you are just starting out, there isn't much money to be made from day one. That means it could be difficult to justify starting when you have a little bit of money set aside until things look promising.

With that in mind, it is important to keep track of the time and money that is being used up for each potential customer that signs up for your product or service.

Conclusion

The above checklist is not meant to be exhaustive; but instead, just provide an overview of some of the things you may want to think about before starting a home based business. Some of these items could take years to accomplish and others may not make sense at all if your business idea doesn't lend itself well to this kind of structure.

If you are still unsure if starting a home based business is right for you, consider reaching out to someone who has done it successfully in the past. They can help give you insight into their experience with running this type of venture and steer you in the right direction.