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Step
6. Gather Information
Lay the
groundwork by gathering more information about your particular
business and researching your potential market.
Spend a few weeks researching home-based businesses.
Colleges, universities, vocational schools and professional groups
may be sources of education about the business that you want to
enter. A library or
bookstore can provide numerous books on business basics to aid you
in the course of your own home study. Some would-be entrepreneurs
even sign up for internship or apprenticeship opportunities to
train themselves in running the business and learning the
procedures they can later adopt. (Read
our detailed article on this topic)
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Step
7. Check on Zoning Restrictions
Check if
zoning approval from the local municipal authorities is necessary
for your business. Find out how your property is zoned, then call
your City Hall and ask what regulations apply to home businesses
in that zone. Also, if you rent or live in a condominium, check
the lease or homeowner's association rules to be certain a home
business is allowed.
Also, it is important to know of any neighborhood restrictions
regarding shop noise, chemical usage, odors, signage, deliveries,
traffic or parking, or any other deterrents from running a
business at home. Know what you can and can’t do right from the
very start; complaints from your neighbors may result in your
having to close down.
(Read
our detailed article on this topic)
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Step
8. Pick a Business Name and Register It
Your business
name is your first opportunity to make an impression on potential
customers. If the business you choose is different form your name,
file an assumed (or fictitious) name certificate with the county.
You are notified if another business already has that name, so you
can select a new one.
Do this
before investing in expensive stationery and brochures. It costs
only a few dollars to file, and it protects the business name from
being used by someone else in the county.
(Read
our detailed article on this topic)
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Step
9. Write a Business Plan
A good
business plan serves as a blueprint for your new business as it
helps clarifies your ideas and establishes a plan of action. A
good business plan should include a description of what you are
selling, your background and qualifications, who the prospective
customers are and where they can be found, what is needed to build
the business, how you plan to promote, and how much money is need
for start-up costs.
(Read
our detailed article on this topic)
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Step
10. Get an Identifying Number
If you are
the sole proprietor of the business and have no employees, you may
either use your Social Security number or an Employee
Identification Number (EIN) as the business number on
official
forms. If you have employees, or the business is set up as a
partnership or corporation, you must obtain an EIN. To do this,
complete IRS Form SS-4 (Application for Employer Identification
Number) and file it with the nearest IRS Center.
(Read
our detailed article on this topic)
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Step
11. Obtain a Sales Tax Permit
If the
product or service you sell is taxable, you need a state sales tax
permit. Call the local tax agency, explain the type of business
you have and what you sell, and ask if you need to collect sales
tax. If you do, they will send you the necessary information and
forms to complete. You also use this tax number when your purchase
items for resale.
(Read
our detailed article on this topic)
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Step
12. Obtain Licenses and Permits
Make sure
that you investigate legal requirements thoroughly. It is very
important not to overlook any necessary license or permit. Laws
regarding licensing and certification are area-specific and
usually differ for various kinds of businesses. For example, some
cities and counties require a general business license, and most
have special laws regarding the preparation and sale of food.
Call City
Hall to find out what is needed for your particular business and
situation. In addition, you
may also wish to check on your local Chamber of Commerce for
information on city, county and state licenses and permits.
(Read
our detailed article on this topic)
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Step
13. Select Business Cards, Stationery, Brochures
Spend time on
the color, design and paper for these items. They make a definite
impression-good or bad- on the people who receive them. If you are
not certain what is most suitable and effective, consult a
graphics designer or a creative printer whose work you like.
(Read
our detailed article on this topic)
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