Step 1 ~ Self-Employed Home Business Basics

Okay ... you're ready to shift to the self-reliant path! It starts with creating your own business, but don't get scared yet because we can help you sort through getting this part going.

There are hundreds of books and manuals available that teach entrepreneurs how to run a traditional business. But when it comes to getting a solid foundation for your home-based business, good instructions are not easy to find.

So we're going to show you the simplest, lowest cost ways to make your home business a reality in 7 EASY STEPS. Your belief in yourself will build at each step ... are you ready for STEP #1? Here is what you need to do FIRST.

Step #1: IDENTIFY Your Business ...who are you, and what is your Business?

-- Are you offering a Product or Service?
-- Who do you believe will want to buy your product or service?
-- What unique NAME will it have?
-- How do you Register and Claim that business name?
-- Do you need an EIN or simply your own Social Security# for your business?
-- How much do you have for initial start-up costs?
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• Are you offering a Product or Service?
It's important to determine which category your business falls into. PRODUCTS normally require parts, a manufacturing process (even if you do it yourself), and you often need an inventory of your products that are ready to deliver to customers on demand.

On the other hand, offering a SERVICE requires no inventory, parts or manufacturing. Services may include coaching or consulting, health-related services, advertising, organizing, personal assistance, home maintenance or repairs, technical support, day care, photography, interior design and much, much more ... but you get the picture of what we mean by a SERVICE industry, right?

Either way, you want to be aware whether you have a PRODUCT or SERVICE business, because each requires a different approach. We'll get into more depth on that in later posts!


• Who do you believe will want to buy your product or service?
This is called your MARKET. You've got to figure this one out before you spend your $$$ on marketing. Here is the most important question to answer: can you define your IDEAL customer ... the person who would most love and use your product/service?

The more clearly you can define your ideal customer, the more focused and effective you will be when you develop your plan to contact them.


• What unique NAME will it have?
This may be challenging ... you need to find out if anyone already has the name you want to use! It is helpful to talk with people who know you and get their input on this. Before you get set on a name, search on GOOGLE to see what the internet pulls up on what you've chosen. Besides having the name locally, you most likely will want to create a larger internet presence as well, so checking out names online is essential for your future growth. You can go to GoDaddy and see what names are available for websites, as this is a factor to consider in choosing a name. Once you've decided on one, register and claim your name!


• How do you Register and Claim that business name?
First, you want to register with your County Records office as a "DBA", which stands for "doing business as". In our area, it costs $12 to register and keep a name for 10 years, then you can renew it for 10 more. Most County offices now have an option to register online, so check that out before you drive to the County Records office!

Then go back to GoDaddy to claim your internet domain name. You'll find several options, but try to purchase a dot com (http://www.yourname.com/) as this is the most desirable.


• Do you need an EIN or can you use your Social Security# for your business?
You can either use your Social Security# or an EIN (Employer Identification Number) for your business. What's the difference? Not much when it comes to filing your taxes, because both are linked to YOU. You can apply for and get an EIN online at http://www.irs.gov/.

If your business name is tied to your own name (example: Whitworth & Associates), using your SS# may work fine. We have an EIN because we want to keep our business accounts and personal accounts separate ... this makes bookkeeping so much simpler! If you have questions about what's best for you, find a good home-business accountant and take their advice.


• How much do you have for initial start-up costs?
You're going to need to spend some money to get started, no matter what type of business you have! You'll also need a monthly budget, so figure out what it's going to cost to set up and run your business for the first 6 months.

Start-up costs can include product inventory, internet costs (domain name, website, maybe a shopping cart, etc.), logo and design of sales materials, marketing, computer and other office equipment and supplies. Make a list of everything you can think of. If you know others who have their own business, ask them about any hidden costs you may not be considering.
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We've created a FREE REPORT titled "The TOP 10 Secrets for Home Business Success." If you want a copy, just email us and you can download it at no cost!

It's important to BE PREPARED in all the areas we've outlined here. Good preparation = greater confidence in getting your home business off to the best start. Once you've done these things, take a deep breath, give yourself a pat on the back, and let's move to your next step!

Self-reliant living is on the way,
Devin & Maria