Week Two: Putting In the Foundation of Your Home Business By Leslie Truex Updated December 17, 2015 This is the second par...
Week Two: Putting In the Foundation of Your Home Business
By Leslie
Truex
Updated
December 17, 2015
This
is the second part of a four-part series on starting a home business
in a month. If you missed the first week, which is all about
planning, you can review it here:
Once
you’ve done your research, chosen a business to start and made
your plans, it’s time to put the foundation in place. During this
second week, you’ll take care of all the legal and set-up tasks to
get your business up and running.
Day
8: Set Up Your Business Structure
Don’t
let this step scare you. Establishing
a business structure doesn’t
have to be hard. There are several structures you can consider.
A sole
proprietorship is
the fastest, easiest and cheapest way to start your business. It
doesn’t require any paperwork or cost. However, in a sole
proprietorship, you and your business are viewed as a single entity,
which can put your personal assets (i.e. home) at risk if you’re
sued.
A
safer business form is a limited
liability company (LLC),
which sets up your business separate from you. If you hire a lawyer
or use a legal resource, it can cost several hundred dollars, plus
the fee your state charges. You can do it yourself. Nolo offers
several books on what’s required.
If
there’s more than one of you involved in the business, you’ll
want to set
up a partnership,
which is more expensive and involved, but crucial to protecting all
partners.
Day
9: Obtain Needed Permits and Licenses
This
is another area many would-be home business owners feel overwhelmed
about, but it’s not hard or complicated. In fact, most, if not
all, of these issues can be taken care of online.
There
are several types of permits or licenses you may need, including:
Business
License:
Odds
are your city or county’s official website has information for
businesses including permits and licenses. If not, you can call or
visit your local city or county’s government office for
information and details.
Sales
Tax Permit:
If
you sell tangible goods (stuff you can hold in your hand), and your
state charges sale tax, you’ll need to collect and pay sales tax
on your items. Check your state’s tax or comptroller’s office
online for information. You’ll probably be able to sign up for the
permit online.
Occupational
Permit or License:
Depending
on the business you run, you may need an occupational permit. These
are supplied by states that regulate certain businesses. For
example, you may need a license to run a day care out of your home.
Typical regulated businesses include day and elder care, financial
businesses, grooming (people and animals), and food and beverage
creation and sales. Check your state’s website for information on
occupational licenses.
Fictitious
Name Statement (Doing Business As or Assumed Name):
If
your business name is something other than your given name, your
city or county may ask you to file a fictitious name statement,
sometimes called doing
business as or assumed
name statement to
let residents of your area know about your business. This is often
done through your local city or county clerk’s office.
Employer
Identification Number:
This
isn’t required in all business types, but it’s free and can help
keep your business separate from your personal life. If you have
employees, you’ll definitely need one. Visit the IRS online for
details on whether or not you need Employer
Identification Number (EIN)
and how to get one.
Business
Bank Account:
Once
all this is set up, it’s time to open
a business bank account.
Even if you run your business as a sole proprietor, you’ll want a
separate account for business. The IRS is a stickler for not
comingling personal and business funds.
Day
10: Set Up Your Home Office Including Billing, Invoice, Money
Management etc
Setting
up your work space can
be fun. Just make sure you have adequate lighting, comfortable
furniture, and the tools and equipment needed to do the job.
Along
with establishing a place to work, you need to set up your work
systems, one of the most important of which is billing and accounts
receivable. There are many computer-based and online
accounting/bookkeeping tools you
can use. Don’t forget to consider your payment policies,
such as when payment is due and any penalties for late payment.
Day
11: Create Logos, Fliers, Biz Cards, etc
Once
your structure and licenses are in place, you’re officially in
business. The next step is to create your business image and put
together marketing tools to promote your business. Like your
business name, your
logo should
represent the theme, tone and nature of your business. Once created,
it should appear on all your marketing materials including business
cards, websites, social media etc.
The
types of printed marketing materials you create will depend much on
the business you run. At the very least, you should have a business
card. They’re cheap and easy to hand out. Other printed marketing
materials you may want to consider are fliers and brochures.
Day
12: Build Your Website
Even
if your business is local, you absolutely need a website. Think of
the last time you used your phonebook to find business information.
Odds are you used the Internet instead. So will your potential
clients and customers. Not only is it away for them to find you, but
most people now research businesses before contacting them, which
means if you don’t have an online presence, people can’t learn
about you.
You’re
actually getting two days to build your website. It sounds daunting,
but today, it’s easier than ever to do. If you can create word
processing documents, you can build a website.
There
are many options for building a website. My recommendation is to buy
a domain (which you should have done day six during the first week),
web hosting services and use WordPress to build your site. You can
have the framework of a website set up within an hour. After that,
it’s all about customizing the look with themes, and adding your
business information. At the very least you want information about
what you do and offer, and how to contact you.
Day
13: Finish Your Website
On
day 12, you should have put in the foundation, a first-draft, of
your website. Day two is about fleshing it out, and making sure all
the needed content is there and it’s easy to navigate. Include
meta tags so that search engines can find it. Because the Internet
is more visual than ever, include pictures and video.
Day
14: Create an Email List including Freebie
Too
many newbie home business owners put off starting an email list
until later. That’s a big mistake. Of all the marketing tasks that
can boost sales, the email list is the most important. So set it up
from the start.
The
first step in setting up an email list is deciding your
free offer;
what to give away in exchange for people giving you their name and
email. The easiest offer is a report. Simply type up a how-to or
report that gives something of value, convert it to PDF, and upload
it to your server. Other options include video tutorials and
consults.
Once
your free offer is ready, you’ll want to sign up for a list
service to manage delivery of the offer as well as the ability to
send other email. List services also take care of CAN-SPAM issues
and unsubscribe requests. MailChimp is free for up to 2,000
subscribers, making it a popular choice. Other email
list service optionsinclude
Aweber and Constant Contact.
Signing
up is easy and once you do, you can create a list that includes
welcome email, the link to your new offer and more. Add the sign-up
form your website andthen
take good care of all the people who join your list.
You’ve
made it to the end of week two. You have your business foundation in
place. In week three, you’ll begin marketing your business. If
you're ready, here are yourweek
three home business activities.
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