Home Based Business Opportunity 101

A Home Business Article Contributed by Alina Sandor

Welcome to Home Based Business Opportunity 101

You've decided to start your very own home based business. You feel this is the opportunity of a lifetime, the chance to make it big.

But wait.

Have you done your homework? Do you know all you need to become successful?

Here are some tips to make sure you are on the right track and on your way to big bucks.

First Avoid a Home Based Business Opportunity Scam

If you are starting a business you found in the newspaper or on the internet it is time to take a pause and a reality check. Make sure you are not stepping into a scam. Check this list to see if your home based business opportunity checks out.

If you found the business on a website, does the site look professional?

Do they give you all the facts up-front?

Do you have to pay a fee to start?

Do they give you phone numbers and addresses for the business?

Do they check out with the Better Business Bureau?

Can you find anyone who has ever worked with them?

Never pay for the privilege of information. If a site is selling a book about an opportunity that they have already told you what it is, fine. But if it wants you to hand over cash just to see what the opportunity is then that's a scam.

First Steps to Start Your Home Based Business Opportunity

The first thing to decide is if you are going to use your name for the company (example: Bob James, Carpenter) or if you are going to use a company name. If you use a business name you will need to get a licence to do business in that name.

Also check to see if you will need a zoning permit or other permits for running a business out of your home. The laws differ from state to state, so if your cousin Bob that lives halfway across the county didn't need any permits, don't think that you won't.

Next, you will need to get a company checking account and credit card to make it easier to keep track of cash flow. Never let company money mix with personal money. If you do, the IRS may be breathing down your neck next tax season.

Start some spreadsheets on your computer to track money flow, your clients purchases and addresses, mailing lists, inventory, and anything else that you may want to keep an eye on.

Before you start spending make sure you have your budget well thought out. Divide your company's budget into categories:

Inventory

Advertising

Office Supplies

Utilities

Also, add in any other categories that will be taking away from the company's checking account.

Remember, don't spend all your money in one area. Many new business people don't leave any money for advertising. How do you expect to get customers without advertising?

You also need to decide whether you will need any other people to help you. Will you need investors? Employees? An attorney? An accountant?