If you are planning to start up a home based business, be sure to research everything you will need before you start. This way, you can save time and money and avoid jobs that may be too big for you. Below, we’ve prepared a list of things to check before you choose what your home business is all about.
1. Is a license required to run such a business? In many states and provinces, business licenses are mandatory, and are a must have before the business opens. Home based businesses are not exempt from this law. Be sure to check with the city hall you live near or other local government agencies to make sure you have what you need to legally operate.
2: Is a zoning permit required? A zoning permit will ensure you will be able to meet with the public, if that is what your home based business is about. Many cites are very strict about their zoning laws, so a zoning permit is essential. The type of business you run may not be legal at your current location.
3: Will you need a lot of equipment? It would be in your best interest to determine exactly how much money you will need to spend on your business to get it up and running. Some businesses from home may only need a computer, but others may require fancy gadgets or heavy machinery to get started. These costs can add up fast. Be sure to research your business so these fees won’t surprise you.
4: Is your home large enough to house your business? Unless you are planning to run an informational company, you will need enough space to stock products and other items. You will need at least one room in your house devoted to your home business for tax purposes, as well. That means nothing from your daily family life can be in this room. Without this kind of space, you may have to add on to your house to reach these requirements.
5: Is insurance required? If you will be meeting with the public, liability insurance is a must. This will protect you if someone injures themselves on your property in any way. In addition to people, you will need to insure any products you might have in case they are damaged.
Finally, business protection insurance is important to consider, because it will help in case there are any copyright infringement claims or any other common problems. If you have employees, don’t forget about health insurance for them or yourself. These costs can add up quickly and raise your start up costs.