Business Starting a Part Time Home Based Business The majority by ramhood17

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Starting a Part-Time Home-Based Business

The majority of successful home-based businesses today started off as part-time endeavors.
These businesses have either remained part-time or have expanded into full-time operations.
Regardless of whether a part-time business makes the transition to full-time or not, there are
many excellent advantages to starting one. A part-time home business can provide an
entrepreneur with a financial safety net in the event that he or she loses an existing job, or help
with monthly expenses and building a nest egg.

Below are a few reasons why starting a part-time business is a beneficial and worthwhile
activity.

Why a Part-Time Home Business?

Takes Fewer Financial Risks

Starting a part-time home business requires much less start-up capital than starting a full-time
home business. Therefore, part-timers are able to invest at a more gradual pace and are less
likely to get overwhelmed by quickly rising debt. Many part-time entrepreneurs, in fact, choose
to finance their operations by tapping into their personal savings or by putting profits back into
their business. This way, they are able to avoid taking out small business loans and
accumulating massive credit card debt.

Tests the Market

By starting off part-time, you are able to find out who your customers are, where they live, what
they need, and what entices them to make a purchase before you put your savings on the line.
If, after a while, you find that there is not a good market for your product or service, you can
easily close up shop without feeling the guilt associated with wasting a bunch of time or money.
On the other hand, if your product or service turns out to be a smash hit, you can easily step up
production — eventually to the point where you are working full-time.

Supplements Your Full-Time Income

Although working two jobs may have some detrimental impacts on your social life in the short
run, you can put your business idea to the test without feeling the pressure of not bringing in a
regular pay or having full-time job benefits, such as holidays, sick pay, etc. By supplementing
your full-time income, you can work to reduce personal debt, put children through university, or
save for a comfortable retirement. Furthermore, you can strive to accumulate the capital
necessary for expanding your part-time operation into a full-time endeavor.

Offers Tax Write-offs
By designating an area of your home as the location where you perform tasks pertaining to your
home business, you are eligible for certain tax write-offs. These write-offs may include a
percentage of your mortgage or rent, utilities, repairs, office equipment, office furniture, property
taxes, and insurance. If your part-time business takes you out of your home, you can also
deduct automobile and travel expenses, including airfare and hotel accommodations. Stay up-
to-date on all of the most recent changes in the tax code, and consult with your tax office.
Profit from a Hobby or Special Interest

Envy those that do what they love for a living? Why not join them? You may not want to commit
yourself full-time to pursuing a hobby or special interest, but starting off part-time may be your
perfect solution. Decide what type of activity brings you the greatest amount of pleasure or
fulfillment and develop a strategy to profit from doing it every day.

How to Get Started

Running a part-time home business has never been easier. With the help of the Internet, e-mail,
and a myriad of new technology products, entrepreneurs can take care of business anytime of
the day and stay in close contact with their customers and suppliers. These advances in
communication are especially important to entrepreneurs who continue to work full-time and are
restricted to conducting business during odd hours of the day or on weekends.

Starting a part-time home business requires some research and heavy planning, but by carefully
completing these activities, you will save yourself a great deal of time, money, and effort in the
future. Here are some tips on getting off to a right start:

Explore Your Options

Ideally, you should start a part-time business that builds on your strengths and past
experiences. Identify your special skills, hobbies, interests, and activities you excel in and enjoy.
Once you get an idea of what kind of business would best suit you, research the market
demand for the product or service you intend to provide. If you are thinking about buying into a
part-time franchise or business opportunity, you should perform a thorough investigation at this
time. Get references from Business Links, the appropriate chamber of commerce, and others
who have previously invested in the franchise or business opportunity.

Assess Your Financial Situation

Based on your savings and current income level, calculate how much money you can invest into
your part-time venture. Next, create a budget covering anticipated business expenses. Include
one-time expenses such as licenses, permits, equipment and office supplies, as well as
reoccurring expenses like your salary, utilities, advertising fees, and taxes. Although many part-
time entrepreneurs finance their businesses on their own, think about whether or not you should
apply for a loan or a line of credit. Whichever method of financing you pursue, make sure to
earmark enough money to cover expenses for at least six months.

Create a Business Plan

Establishing a business plan will steer you in the right direction of accomplishing your
professional objectives. Your business plan should include: an overview of your business;
detailed customer profile; market analysis; competitive comparisons; outlines of your marketing,
sales, and pricing strategies; and a comprehensive plan for financing your operations.
Essentially, your business plan should indicate the steps you plan to take to successfully launch
and manage your part-time home business.




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Take Care of Legal Matters

Before you get your business cards printed, make sure you verify that it is okay to run a
business from your home. Investigate the regulations local or national that you may come
under. You may find that you are not permitted to run a particular kind of business from your
home, or that you need to make some modifications to your property. If you find out that it is
perfectly legal to run a business from your home, remember to revamp your current insurance
policy to cover future business activities.

Business Regulations

Besides checking that you can operate from home you should decide what business status you
want to acquire - Sole trader, Limited company, etc. this has important legal and financial
implications for your business and its profits so research for what option suits you best. Your
local library should have material on this.

Set Up Your Home Office

Decide which room in your house (or corner of a room) is going to be your home office.
Preferably, choose a location where you will have minimal distractions and good lighting. Next,
outfit your home office with the necessary office supplies, a filing cabinet, and a functional desk
and chair. Additionally, make sure you have a good computer system, fully equipped with
Internet capabilities, e-mail, and the most current business software applications. You may also
want to invest in other types of office equipment, such as a fax machine, photocopier, scanner,
and/or a more professional telephone system.

Set a Schedule

Running a part-time business, especially when you are still holding down a full-time job, requires
a lot of self-discipline. Designate a certain time of the day, every day, to work on projects
pertaining to your home business. By doing so, you will not get buried under heap of
administrative work and will be able to respond to your customers in a prompt and professional
manner.

Launching a part-time home business is the perfect way to test the waters of self-employment,
without leaving the security of a full-time job or risking your life savings. Once you get your part-
time operation up and running, you may decide to leave your full-time job behind and dedicate
yourself entirely to expanding your home business. This can be a safe and sensible approach to
building a profitable full-time business. It has worked for thousands of successful entrepreneurs
and can work for you, too!




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