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Here are some general start-up tips for a successful home business.

The first tip is a word of caution. It’s easy to think that because your home business can bypass the lease or construction aspects of starting a business, and the overhead costs of furnishing, maintenance, landscaping, utilities and so forth, that you can skip over some other processes to. That attitude, rather than heading someone down the road to a successful home business, could lead to financial business disaster.

An entrepreneurial spirit and a great idea are terrific assets for a successful home business. Other things are important too, however.

Market research and careful planning are of paramount importantance to the success of a home business, as they are for any business. A business plan is a must. It must include details on the products and services the firm will offer, the type of business equipment and the cost of it that will be needed in the coming five years. It should also include information on the competition in the designated market area. This information should include ways that the new home business will be successful in competing – how it is unique and how it is an improvement over what else is out there in the same industry.

A successful home business is one that is set up as the right legal entity. One of the first things new home based entrepreneurs should do is learn the legal consequences and liabilities of the various business types, as well as the tax consequences of each. A home business might be more successful as a partnership than sole proprietorship, for example, if additional cash flow is needed, or the entrepreneur is deficient in a crucial home business skill such as advertising, marketing or accounting, for example. An accountant can advise on the various options such as limited liability corporations, S corporations, standard corporations, limited partnerships and so forth.

Unless a successful home business is going to include walk in customers homeowner’s or renters insurance should provide adequate financial protection against theft or natural disaster. Of course, as equipment and furnishings are added, the insurance would need to increase. If clients were to come to the home office location, liability insurance would protect the firm from the financial devastating situation of customer injury.

A successful home business is one that is well planned and well funded. There is no such thing as too much preparation.


Source: http://www.highbeam.com/library/docfree.asp?DOCID=1G1:14651215&num=5&ctrlInfo=Round20%3AMode20a%3ASR%3AResult&ao=&FreePremium=BOTH&tab=lib

About the Author: Roger D Osborne Grew up in the Appalachian Mountains of Kentucky. He served in Viet Nam with the United States Air Force. He has lived in Castroville, Texas with his family since 1987. He spends numerous hours locating and testing the best home based business ideas and opportunities. His suggested business ideas and opportunities provide you the information and resources to earn a good income from the comfort of your home. To find your prosperous home based business please visit: http://ProMarketingNetwork.com or http://ProMarketingNetwork.com/optin.html