The author Perry Belcher wrote a book, How To Start a Business From Home is a step by step guide to planning and launching any new Business. He has started, ran and sold dozens of businesses and shares his experiences, mistakes and biggest breakthroughs. The book will help you with home based business, how to start a business and getting business ideas.
Well-known corporations such as Apple Computer, Hershey’s, Mary Kay Cosmetics, and the Ford Motor Company actually started as home-base business. It may be simple to start a business at home once you already got an idea on what to market but launching a business from home have its own set of challenges.
Below are areas Perry covers in his book:
When you start a business, you would probably ask yourself: “Do I need a Lawyer?” Having a lawyer help you with the general and legal advice towards the idea of business you are doing. Lawyers aren’t that expensive for the information and help you are getting from them. You can get a good general practicing lawyer on retainer usually for less than $1000. The book includes legal issues such as Liability, picking your lawyer, working with a partner, Responsibilities, and trademark and copyright law.
Perhaps there is a potential in your business for somebody suing you. A good example is a friend of Perry Belcher who owns restaurants, and has 60 franchise restaurants. In 60 franchise restaurants, there is going to be a level of food poisoning cases. They have a certain level that they expect to have every year of food poisoning cases. If they go over, they get kind of worried. If it is under that level, they have a big party. In a case like this, you always want an attorney on staff.
Think Twice Before Borrowing
It would be ideal if you will not have to borrow money to start your business. After all, you want your own business to give you an additional source of income, if not the main paycheck. You do not need another bill to pay.
But sometimes, you really have to borrow money to keep going. A major reason why many small businesses fail is inadequate capital. If you really have to, you must be prepared to take on the right kind of debt. Not all debt is bad debt. You have to ensure that before taking on a debt, you must see a way to pay it back through your business.
As much as you want to be optimistic about your venture, there is always the possibility that your business can fail. Instead of fattening up your bank account, you could end up selling your house, your car and withdrawing your children’s college tuition just to pay off the debts. Be a smart risk taker.
Be Lean And Mean
If you have limited capital, set aside any thoughts of a fancy store or great office. Start home-based and explore the advantages of working at home. Or if you must be “out there” selling your products, rent a small section at a flea market or fair. You may consider renting at the mall only when you see money coming in.
In terms of legal structure, you can save tons of money by starting as a proprietorship. A Corporation is expensive to set-up, requires vast amounts of record-keeping, and will tax you twice as an individual working for the business and as a corporation.
Plus, you have to operate as tightly as possible. As a sole business owner on a budget, you do not have the luxury of wasting supplies, making unnecessary long-distance calls, and spending office money without a thought. Now every expense comes from your own pocket.
Spend money only when you really have to. In fact, you can save tons of money if you select a business based on equipment that you already own. For example, consider starting a photography business if you already have your camera and photography gear. You may want to start a daycare business if you already have enough space in your house rather than spending money at the start of the business constructing new rooms in your house. If you must buy equipment, do so only when you have already landed your first account. Otherwise, consider renting it for the moment.
Choose Your Business Carefully
Your choice of business will spell the difference between making your business a success on a shoestring budget or not. Some businesses, such as a file storage facility, require enormous capital. Choosing the business must also vary on the amount of budget you have.
Aside from the above mentioned, the book includes the following topics:
- Legal Framework
- Composing a Business Plan
- Venture Capital
- Avoiding Failure
- Office Space
- Your Target Demographic
- Customer Service
- Running Your Business