How to Start A Home Based Business 101

8 simple steps to starting your own home based business.

Find your niche! I can’t express this enough.

I do realize that many of you understand the idea of this. The problem I find most people pondering is how you actually find your niche. It’s really not as complicated as it may seem. An easy way to figure this out is to write down on paper a list of all your skills, talents and hobbies. Your niche will be on this list. Figure out which one of your talents, skills or hobbies you are the best at and passionate about. Then use that to create a business.


Now that you have your niche you need to research it. It is one thing to do it for fun and it is another to do it for your business. The internet is full of information so read up on it. Find out what certifications and licenses you will need. You may love to style hair but are you qualified for that business? Also, find out what equipment and supplies you will need to purchase to actually operate that business. What are the start up costs? How will you fund this business? What are the daily tasks for that business?

Who is your audience?

This is simple enough. Who will you sell your products or services to? This is often called a niche market. It is much easier to sell your services or products to a certain group of people rather than to sell it to everyone. So decide who you will market your business to.

Plan of Action.

Start taking the necessary steps to making your dream a reality.

• If required, take those classes so that you can get your
certifications mandated by your state.

• Begin buying equipment & supplies. You can also rent them if they are
too pricey and you want to get started sooner.

• Set-up your home office.

• Come up with a business name and register that name with your state,
either as fictitious name, D.B.A. or as a corporation.

• Go to your county office and get your business license or occupational

Get organized!

Get yourself some business forms. This will help your business run smoothly. The type of business forms I like to keep on hand are a message book to keep track of my phone messages, receipts, invoices and a daily task sheet.

What are your marketing strategies?

Will you pass out flyers, door hangers, or business cards locally? Will you advertise by connecting with people in social networks? Will you pay for advertising such as online pay-per-click solutions?

Get a website.

I can’t tell you how many of my clients come to me and say “I need a website. I don’t know why but people keep asking me if I have one.”

The truth is, accessing the internet these days is a way of life. Consumers use the internet to search for businesses, research and compare businesses. So not having one will just leave you out of the running. You always want to be in the competition.

Promote! Promote!

You can have a great business but if no one knows who you are, it cannot be profitable. Continue to advertise in conventional ways and non-conventional ways. Just don’t break the bank doing so. 10% of your businesses income should go towards advertising. Never exclude word of mouth. The cheapest form of advertising there is.

How to Find Home-based Business Options

Need home-based business options and ideas? The possiblities are essentially endless as long as you have the drive, can conduct a little research and have enough space to open your shop at home. If so, read on for information on home-based franchises, internet businesses and other home-based business options.

People looking to start a home-based business sometimes look to franchises. Franchises are available from no investment to hundreds of thousands of dollars and include vending, specialty retail and glass repair, among others. Essentially, the ideas are endless for creating a home-based franchise. Research will tell you more, such as the associated costs, terms and contract and space requirements of those options available.

Internet home-based businesses are another popular option for a home-based business. Ebay businesses, consulting companies, companies that sell products or other services on the Internet and other types of home-based web business all fall under this category.

A popular home-based business is product sales. Examples of this type of small business are Avon, Pampered Chef, Mary Kay and Tupperware. If you’re a natural salesperson with lots of friends and contacts, this may be the home-based business for you. The better you are at networking, the better you’ll do in this kind of home-based business.

Another home-based web business is publishing. You can make money if you are a good writer. Check out freelancing sites for writers, write ebooks you can sell online or make money from advertising by writing articles for content websites. If you feel this is an option, start with an Internet search for sites looking for content producers or post a free ad on Craigslist. Consider starting a website or blog to promote your services.

If you have business skills, you can parlay those into a consulting business. Many small businesses can’t afford their own technology department or marketing staff, among other things. IT and marketing consultants are popular options. If you have the skills, expertise and experience, consulting may be the home-based business for you.

How to Start a Home-Based Business

Although a home-based business can offer you a great deal of flexibility, you’re still subject to certain state and federal requirements and regulations. You must deal with certain things before you can officially start operating a business from your home. You must comply with all registration, licensing, permit and insurance requirements to avoid fines and penalties.

Registering Your Business

Register your business name with your state’s filing office. If you’re operating under a fictitious or “doing business as” name, you may be required to take extra steps to register it based on your state’s laws. For example, you may need to register the fictitious or DBA with the county instead of the state. To protect your business name and ensure that no one else uses it, consider filing for trademark protection.
Licensing and Permits

You must comply with your state’s laws regarding licensing and permits. The rules and regulations vary not only by state, but also based on the type of business you’re starting. Although it may seem like you don’t need a license for certain businesses like selling items on eBay, your state may actually require it. If you start a business selling other people’s items online for them, your state may require that you obtain an auctioneer’s license. If you plan to operate a daycare out of your home, most states require that you be a licensed child care provider. You might also have to file a home child care license and undergo fingerprinting and background checks. Real estate agents operating from home must pass state licensing requirements. According to the U.S. Small Business Association, your county or city may require different permits based on the type of your business. Some examples of common permits include:

Health and safety permits
Sign permits
Construction permits
Home occupation permits
Sales tax permit

Zoning and Homeowners’ Association Rules

In some cases, your home may not even be zoned for the type of business you want to conduct. Check with your city’s zoning office. Request to see copies of ordinances that apply to home-based occupations. Even if your city says you’re zoned for operating out of the home, there may be restrictions if you live in a planned residential neighborhood or complex with a Homeowners’ Association. The Homeowners’ Association Covenants, Conditions, and Restrictions can’t necessarily ban you from operating a home business, but the rules can limit activities that affect your neighbors, such as customer parking, added traffic, noise and signs.

Certain home-based businesses require insurance. For example, if you’re running a daycare service out of your home, you’ll have to carry insurance to protect your liability. Even if your business doesn’t necessarily require insurance, consider the possible risk of an incident occurring on your property. If you have merchandise or products you store in your home, you may want to ensure that they’re listed as contents and covered in case of theft or a disaster. You can add additional coverage or a rider on to your existing homeowners insurance policy or purchase separate insurance for the business. Check with your homeowners’ insurance company.
Start-up Costs

The amount of money you’ll need to start your home-based business can vary significantly depending on the type of business you want to start and the equipment, supplies or merchandise you’ll need. According to Business News Daily, the average cost of starting a home-based business can be more than $25,000, but 39 percent of owners spend about $5,000 to get their businesses up and running. The most common sources of start-up funding include:

Personal savings
Credit cards
Small business loans
Home equity loans


Not every home-based businesses needs a federal employer identification number for tax reporting, but some home businesses can’t operate without one. If your business is a corporation or partnership, you’ll need to apply for an EIN) with the Internal Revenue Service. If you’re a sole proprietorship or independent contractor, you can use your Social Security number. You can still apply for an EIN, but it’s not mandatory.

You may qualify for special tax deductions for running the business from your home, such as the home office deduction. Your home office doesn’t have to be an entire room. You can calculate the percentage of your home that qualifies by measuring your work space and dividing it by your home’s total square footage. The percentage is the amount of your annual rent, mortgage, homeowners’ insurance and utilities that you can deduct because the space is used for your business, but it must be dedicated solely to your business — your family can’t hang out there.

10 Best Home Based Business

Working from home has many advantages. You save time and money by not having to commute, you have more ability to set your own hours, and you have greater flexibility to work around your family’s schedule. You do, however, have to demonstrate a good amount of self-discipline and determination in order to succeed. If you think working from home might be for you, then here are ten terrific ideas for a home-based business.


If you have a special skill or have successfully worked for a number of years in a specific industry, chances are you have what it takes to be a consultant. Consultants serve as advisers in their area of expertise in almost any job area. For people with knowledge in the finance industry, business law, marketing and more, consulting can be a lucrative career. The requirements for being a consultant depend on what field you’re interested in. An advanced degree would be a prerequisite for business law consultants, while a wedding consultant could set up shop simply by working for an experienced consultant for a few years.


Accountants can balance the books from the comfort of their own home as well as from the workplace. Increasingly, companies are willing to allow workers to telecommute, or outsource certain functions to independent contractors. Smaller companies will hire accountants without formal training if they have experience and have proven their capabilities, but generally accountants have at least a bachelor’s degree in accounting or business. In order to become certified, they must pass a national exam and any required tests for the state where they live.

Daycare Provider

If you have small children of your own or really enjoy working with kids, becoming a home daycare provider may be the right job for you. You will have more credibility if you get licensed and registered, plus you’ll have access to training opportunities and the chance to network with other providers.


If you’ve worked as a reporter, business writer, or just love to write, you may be able to start your own writing business. Corporate clients need writers to produce newsletters, maintain blogs and write copy; magazines need people to write articles; websites need content. Also,many people look for writers to ghostwrite their memoirs. While some writers have degrees in journalism, English or creative writing, many successful writers learn their trade through online courses, writing critique groups and practice.


You don’t need an office to set up a housecleaning business; your own home will work just fine. Both individuals and businesses need people to clean for them, so if you don’t mind hard work, this might be right for you. You can earn a good income without investing in years of education or a lot of equipment. In addition to being willing to work hard, you’ll need to be able to manage your time well and deal with the business aspect, such as taxes, insurance and advertising.


Transcriptionists are needed in the medical and legal fields and can earn a high salary from home. Transcriptionists have either an associate’s degree or a certificate earned in a program lasting one year or less. Certification is available, although not required, through the Association for Healthcare Documentation Integrity for medical transcriptionists. Former health care workers, such as nurses, or legal workers like paralegals, can also work as transcriptionists.

Event Planner

If you have a flair for entertaining, you can use your skills to earn money and help other people plan their special events. Event planners plan weddings, kids’ birthday parties, corporate events and more. It’s a fast-paced career where you can put your creative talents to work and earn good money. Start by planning events for friends and family and build a portfolio, or work for an established event planner. For an event planner, every day’s a party!


You can become a beautician in a year or so and establish a shop in your home. If you like styling hair, doing nails and playing with color, this might be the career for you. Licensing requirements vary from state to state, so you’ll need to check that out before you start your business.

Massage Therapist

Massage therapists have the satisfaction of knowing they are helping other people improve their health. They also can set their work hours to accommodate their family’s schedule. Massage therapy qualifications takes less than a year, and the equipment investment is minimal: a massage table, some oils and lotions and you’ll be ready to get started. If you have a quiet room you can use, you can provide massage therapy in your home.


If you create art in one form or another, you can set up a studio in your home and sell your crafts at craft shows and online at etsy ( Jewelry, fabric art, collages, paintings, pottery and more are just some of the items artists (like you) create and sell from the comfort of their homes.

How to Find People Looking for a Home-Based Business

You have a home-based business, but you want to expand those underneath you in a down line of sorts. You will be surprised at how many people are looking to leave the 9-to-5 routine behind. Finding people who want to start a home-based business is not a difficult task, but it will take perseverance. Being able to take rejection also helps. In the long run, you will find it is worth your efforts.

Take business cards and brochures wherever you go. Work your home business opportunity into any conversations, if possible.

Purchase a magnetic sign for your car as well as an inexpensive business card holder, since people will not always have pens or paper to write down your number. This works as a 24/7 advertisement for people who are seeking a home-based business.

If you have kids, go to moms’ groups, parks and playgrounds. There are many mothers who are looking for home-based businesses but do not know where to find them or what is legitimate. You can help them by presenting your opportunity to them in a casual, nonthreatening environment. Just present, but do not pressure. They know where to find you if they are interested. Do not risk ruining or straining relationships over your home-based business.

Go to local networking groups. Oftentimes, they will have only one person per field, so there is no competition among members, but you’ll get the word out about your home-based business opportunity. Check with area restaurants and businesses about meeting times and dates. Often the local businesses will give you an invitation if you ask.

Join your city’s chamber of commerce. This will let people know you have a home-based business, and you may find more individuals interested in joining you. The chamber of commerce often sponsors events a few times a year that you can be a part of, thus giving your home-based business additional exposure at low or no cost to you.

Have a home party or open house if the home-based business allows or warrants this. These can be a fun way to get to know your neighbors and let them know of your opportunity and how much you enjoy being in business.

Advertise your home-based business with your child’s school newspaper. The parent-teacher organization will often sell blocks of advertising in various publications. The same is true for church bulletins, park-and-recreation brochures and local publications. Check in your area for more information and pricing.