After thinking a bit about the suggestions that I wrote about yesterday, I realized that that I should talk a little bit about the importance of doing these smaller steps close enough together so that you can build momentum that will carry you through those crazy initial days, weeks, and months after you are open for business. I would suggest that you complete one of the steps each day, or every other day. Of course, you may need to tailor that suggestion a little to your schedule but it is important that you not spread them out too much because doing so keeps your home based business on the back burner. It is natural to want to take it easy, especially if you will be running your new business alongside your current job and in conjunction with your family, social, and other activities. It may be helpful to think of it this way though, the time when you are doing your job and your business alongside each other is going to be crazy. It is going to be crazy whether you start your business two weeks from now or two months from now – why not grab the bull by the horns and get moving in the direction of your dreams.
Now that you have brainstormed and researched business ideas, it is likely that you have narrowed your focus to the idea that seems like it is the best fit for you and the best chance of getting the customers that you need. It is time to get your head into the numbers game and figure out how much money it will take to get your business up and running. If you are anything like me and tend to be afraid of working with numbers, do not run and hide. You will have to get used to working with numbers because chances are that you will be keeping the books and doing the accounting for your business. If I can do it, you can too.
The number that you are looking for is how much money it will take to run the business for six months. That is what many experts suggest that you have in order to get your business through the startup phase. While you will hopefully generate income long before the six month mark, you do not want to depend on that income to cover your expenses. To get an estimate of your start up costs, think about what equipment, supplies, furniture, and people you need to start your business. Keep in mind that home based businesses may have it a little easier in the startup department than bricks and mortar operations because you may not have to pay rent, utilities, and other things associated with having a store or office. It is also quite common for home based businesses to be one man or one woman operations. If that’s you, the only wages you will have to plan for are your own. Do not forget to calculate how much you will need for the following things if they apply to your business idea: inventory, advertising, product development, licenses, permits, packaging supplies, office supplies, operating capital, taxes, and legal or professional fees.
Come on back tomorrow for the next step towards opening the doors of your very own home based business.
Photo by cworby on morguefile.com.