ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Setup a Home Business

Updated on February 9, 2014
Wolfy profile image

Kate is a researcher and writer who holds a Bachelor of Science (B.S.) degree from Sonoma State University in California.

If you have had no luck trying to find a job, perhaps you would like to consider creating a job on your own. With a good idea, some hard work and the proper organization, it is possible to set up a home business of your own. There are always opportunities in all different fields for starting a business. Whether you want to provide a service or sell a product, the first thing you need to do is decide how your business will be organized.

There are 3 basic types of business formations for you to consider. The simplest and most often used by an individual starting a business out of his or her home is a sole proprietorship. If you want to go into business with a friend or another individual, you might look into forming a partnership. Finally, if you want to protect your personal assets and keep the business as a separate entity from your other financial dealings, you should consider forming a corporation.

What is the most enticing part about the idea of working from home?

See results

Step 1: Choose the Type of Business

A sole proprietorship makes the individual personally liable for the actions of the business. Any profits or losses are reported on the business owner's personal income tax form. The same is true for a partnership where each partner can be held liable for the actions of the company and they report their portion of the profits on their own personal tax forms. A slight exception to liability is if you become a General partner where your liability is limited to your investment, but, you usually do not have a say in the day-to-day operation of the business. A corporation separates the individual from the company. Liability for the actions of the business is assumed by the corporation and the officers of the corporation. The corporation pays its own taxes. It is a more complex way to organize a business and can cost more to form. There is no limit on a C corporation as far as its size is concerned. You can form a 1 man corporation or have a corporation with a million shareholders.

Step 3: Find Your Customers!

Assuming you have some working capital, the next step is to market your company and get potential customers interested in your business. If you are selling a service such as designing web sites, you will need to have a very professional web site of your own with plenty of examples of your work. If you want to sell shoes on EBay, you need to take a different approach. In either case, you should be well organized and develop a marketing and advertising plan that best suits your particular business.

Step 2: Develop a Business Plan

Once you have decided on the type of business structure, the next thing to do is to have a good business plan. In a business plan, you will lay out your objectives and goals and have a well-defined path about how you intend to achieve those goals. If you intend to get a bank loan or other financing for your new venture, having a professional looking business plan can help when you present your loan application to the bank or lending officer.

Step 4: Figure Out a Payment Method

Finally, you should have a good method of accepting payments and fulfilling orders as they come in each day or week. Customers should have as many options to pay as feasible including by credit card, PayPal, check and so on. Also, you should have a shipping policy so your customers will get what they ordered in a reasonable amount of time.

Remember

Having a home business can be a very good way to make a living and perhaps even become financially independent. There is no better feeling than how it feels to be your own boss and set your own hours. Most people start a home business because they realize it's important to work to live, and not live to work. Just remember, the more time and effort you put in to a home business, the better your chances of success.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)