Operating a business from home has several advantages over traditional brick and mortar small businesses. Home businesses don’t require expenses such as rent for retail space, and the convenience to work from home could be priceless for a busy family or student. However, keep in mind that starting a home business involves the same necessary steps as businesses with physical locations.
4 Steps for Starting a Home Business
- Have an Idea: Having a unique and creative idea for a business model is the first step to opening a small business from your living room. After you’ve decided what kind of business you want to open, determining a name for the business is essential. Search competitors’ names to ensure you don’t open the door to legal trouble by accidentally giving your business a name that has already been legally trademarked.
- Make Your Mission: When starting a home business, developing a mission statement requires a great deal of intentional thinking to determine the reason your business exists, the long term vision as well as daily objectives that will drive your small business towards its ultimate goal. The mission statement can serve many purposes and can be used in legal documents as an effective description of the organization and its overall goals.
- Employee Endeavors: Depending on the work being performed and the volume of services provided, hiring employees might be necessary when starting a home business. Be sure to adhere to all laws when hiring and managing employees. Consider developing an employee handbook that explains all company policies, procedures and expectations to avoid potential legal troubles in the future.
- Tax Time: Staying on top of financial obligations is vital to ensure your small business can make payroll and pay bills in addition to confirming payment from clients or customers. Tax requirements vary by state, however a legal expert serving small businesses can provide insight and information regarding taxes depending on the circumstances of your small business.
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Asha Wilkerson is the founder of The Wilkerson Law Office. Ms. Wilkerson provides skilled advice and counsel to for-profit, non-profit, and faith-based organizations in the areas of business and employment law. The mission of The Wilkerson Law Office, is to preserve the longevity of your business by ensuring that every aspect of your organization is legally sound and operating in compliance with state and federal law.