May 17

Once you have completed your business plan, it’s time to review your work. Remember, writing your business plan is a significant step in making your small business concept a reality. Therefore, you should review your plan carefully and ask others who you feel can provide sound advice to also critique your document.

Your business plan should include:

  1. All key sections: Executive summary, business overview, sales and marketing, management team, competitive analysis, and financial plan.
  2. A table of contents.
  3. All key points explained clearly.
  4. Concise language, eliminating any extraneous material, hype, or repetitive statements.
  5. Substantiated facts, such as current and accurate data and verifiable claims.
  6. A clearly defined target market and realistic goals to reach this audience.
  7. A clear competitive analysis presented in a manner to show how you will gain a competitive edge.
  8. Financial projections that are neither overestimated nor underestimated in a time frame suitable for launching the business. Be conservative with your estimates.
  9. Visible contact information on a cover page and at the end of the document.
  10. Content that has been thoroughly proofread and checked carefully for spelling and grammar.
May 17

While it may be true that there is no place like home, it is also true that running a home business may not be as easy as it looks. Dividing your home in order to create a suitable location for your business — while keeping the remaining space comfortable for those living in the house — will take some careful planning.

  1. Trying to fit a round business into a square house. Not all businesses can realistically succeed in a home-based location. Take a look at your needs for equipment, work space, storage, inventory, and employees to determine if it is simply too difficult to run your business from your home. Service-based businesses are typically easier to fit comfortably into a home than retail or manufacturing businesses. Many people learn the hard way by not being realistic upfront.
  2. Lack of motivation. It is easy to become distracted. A home business should be run in the same manner as an office-based business. You need to motivate yourself to go to work in the morning and maintain that motivation during the course of the day in order to succeed.
  3. No room to grow. If you are fortunate and your home-based business is successful, you may need to expand. This may simply mean purchasing another computer or printer, or making space for an employee. It is important while setting up a home business environment to anticipate growth. How do you know if it is time to expand beyond your home into a real office?
  4. Over spending what you are saving on overhead. Too many business owners justify spending money on all sorts of equipment by not paying overhead. In the end they overspend. Watch your budget.
  5. Forgetting to promote your company. It is not uncommon for home-based business owners to get a little too comfortable working in a relaxed environment. Too often this means not getting out and promoting the business. Email newsletters are a valuable means of promotion. Conferences, industry events, and even local chamber of commerce gatherings can help you build your customer base.
  6. Not having a client-friendly environment. You may need to have clients come to your home. Too many home business owners have had to make excuses for their house, kids, dog, and the lawn sprinklers before sitting down with their clients. Set up the office portion of the house for business only.
  7. Technical insufficiencies. Many home-based businesses are not dedicated or up-to-date. Your business computers should not be networked to the home computer where your children are hogging valuable bandwidth downloading games. And your technical equipment should be as state-of-the-art as you need and can afford.
  8. Zoning nightmares. You may not know the zoning laws for your neighborhood, but your neighbors may be able to recite them. There are many stories of home business nightmares because of zoning laws. The more discrete your business is, the less likely you will have problems. However, read the zoning laws regardless.
  9. Overlapping home and office. One of the advantages of working from a home-based office is that you can spend more time with your family. However, as much you love them, you need to have a separate office space and set some ground rules so you can work while other activities are taking place at home.
  10. Lack of a business plan. Just because it is a home-based business does not mean you do not need a business plan. You should be taking your business just as seriously as if you were heading into any other type of business.
May 17

Starting a home-based business is never easy. From advertising to zoning, there is always something that will require your attention. Here are ten tips to keep you focused on your quest to make your home-based business a success.

1. Set a schedule and stick to it. The allure of working from home is powerful — but so is the appeal of spending more time with your family or of taking a nap in the middle of the day. Setting and maintaining a schedule for your workday is critical.

2. Set up a dedicated office area. You can’t run a business from your kitchen table. A successful business requires a fully equipped home office. If you have an extra bedroom, consider converting it into office space. If you do not have an extra room in your home, try setting up a partition to create an office area.

3. Be professional. One of the perks of running a business from home is having the option of working in your pajamas, but your customers should not be able to tell that you just rolled out of bed. Maintain normal office hours and a professional demeanor when answering your phone or dealing with customers.

4. Advertise. Just because you build it doesn’t necessarily mean they will come. To succeed, you will need to advertise your new business. Advertising and marketing don’t have to be expensive, but they have to be done.

5. Familiarize yourself with the applicable tax laws. You are about to enter a whole new world of taxation. To avoid ending up frazzled, take the time now to discuss your options with your accountant or with another qualified professional who can advise you about your tax situation.

6. Check with your zoning commission. Make sure there are no zoning laws that will prevent you from running your business from your home.

7. Formulate a business plan. Where do you want your business to be in six months? How about in five years? Many small business owners mistakenly think that a business plan is only necessary if they are going to have investors. But businesses of all sizes can use a business plan as a roadmap to success.

8. Get on the Web. The Internet is the single best way for a home-based businesses to reach out to prospective customers. Even if your business isn’t “e-” anything, you need a Web site that can function as an online brochure for your company.

9. Do your research. You may think that your idea for your home-based business is unique. But unless you do some market research, you won’t know whether or not your market is already saturated. Market research can help you find a special angle for your product or service, giving you an edge over your competitors.

10. Don’t get discouraged. Many businesses fail simply because their owners became discouraged after a disappointing trial period. You will have to show grit and determination to make your business succeed. Hang in there and do all that you can to make your business the success you know it can be.