When starting a big task, it is always good to have a to-do list or checklist so you won’t forget the important things.
Starting a business is no exception. In fact, it is important to create and follow the checklist in order to organize your start-up process.
1. Create A Business Plan – Business plan is like your map that will help guide you towards your goal. You will use it to establish certain goals, keep track of your performance, and to establish what direction your business is headed. It does not matter if you are the only one reading it, having one will help you put organization and direction in your business.
2. File and Obtain Business Documents – when starting a home based business, there are a few documents that you may need to obtain. This could be a business license, a DBA (doing business as), EIN (employee identification number), re-sellers permit, etc. You need to make sure that you are in compliance with any state or local laws before you start your business.
3. Open a Business Bank Account – You need to ensure that your business funds are separate from your personal funds in order to completely keep track of your business income and expenses. It will also help you during tax time when trying to classify certain items.
4. Open a Business Credit Card Account – having a separate credit card from your personal is needed so you can keep track of your business expenses. Not only that, you need to be able to identify the interest expense for your business that will be much harder to do if the expenses are commingled with the personal ones. The credit card interests for business expenses are deductible while personal interest expenses are not. It should be noted that when opening a credit card, some companies require you to personally guarantee the business credit card under especially if you have just started the business.
5. Verify the City or County Zoning Codes – Depending on the type of your home-based business, you may need to verify with your city or local agencies if you can run a particular business at home.
6. Set-up A Home Office – ensure that you identify your place of business at home and establish boundaries to ensure that it is separated from your home activities. You will also need to buy the necessary office supplies and furnishings such as desks, chairs, fax machine, computers, printers, file cabinets, etc.
7. Purchase the necessary software – determine the necessary software you need for your business. This could be an Accounting software to keep track of your income and expenses, Microsoft office suites (Word, Excel, and Access) and an Acrobat reader for creating and reading documents, customized business software for your operations, etc.
8. Obtain the necessary Insurance – some home based business requires necessary business insurance. This could be liability insurance, errors and omission bonds, malpractice insurance, fire/hazard insurance, worker’s compensation (if you are planning on hiring employees),etc.
9. Establish an On-line Presence – we are in the information age and majority of the businesses has created a website in order to establish an on-line presence. When customers or clients want to get information about a business, the first thing that most of them would do is go in the internet. Having a website will also present a professional credibility for your business.
10. Set-Up Work Schedule – just because you are working at home, you would think that you may not need a schedule and you can work at any time. This could be a big mistake for majority of home based business owners. You may want to treat your home based business as if you were at an outside office so you don’t always mixed up the business activities with your home activities.
11. Order company stationery – this is important in creating a professional image for your business. I’m talking about having business cards, stationery, envelopes and pens with your company name and logo on it.
12. Organize Inventory - if you are planning on selling a product which requires you to carry inventory, then you would need to organize your inventory. Establish where you want to store the goods and what shipping and/or handling procedures you would require.
Photo credit: theabundancemachine
This is a great list! Very comprehensive. Setting up a work schedule is very important, otherwise it’s easy to spend TOO much or too little time on the home based business
I agree. A work schedule would also help you come tax time when the IRS audits the business. This shows that you are serious about your business and it is legit. When you have business losses, you would be able to deduct them from your tax return