Starting your own company

wizarddeath

Im sure most everyone has thought of this but as I get asked to do more and more "friendly" support, Id like to make this into an actual business I run out of my home.

I know I need a business license(which I assume I obtain in my local city?), but what else is involved in running a business out of your home. Such as home office materials and such...



Thanks,

eMeS

The answer totally depends on where you are located.

There are several excellent books on this topic....I won't recommend a specific one, but a search on Amazon should get you what you need.

Here's a general and not comprehensive list of some of the things that I did to initiate a consulting business.

* Plan, Plan, Plan - Decide what services you will offer, and at what price, and through what billing methods. How will your company be organized, what insurance will you require, etc.. Don't skip this step. One result of this can be a business plan. Even if you are not seeking financing, a business plan can be useful as a guide as you initiate your business. One important question to answer is how will you market your business?

* Register a DBA - "Doing Business As" - This is typically done through a county office and is low cost. It is the minimum requirement for opening a seperate business account with a bank.

* Some people will stop with just a DBA (sole proprietorship), but I recommend formally organzing your business as an LLC or a corporation. The major benefit from doing this is that your personal liability will be limited. Talk to an attorney in your area with experience in formation of LLC's and corporations (avoid websites that offer to do it for you for $99).

* Determine what insurance requirements you have. It's always good for an independent consultants to carry Errors and Omissions Insurance. Any business owner should carry general liability insurance as well.

* Find a good accountant. An accountant can help you with the startup as well as providing important information about what you can and cannot deduct. Do not wait until it is time to do your taxes to find an accountant.

* Determine what contracts, forms, etc. you will require to conduct your business. Depending on the type of work, you might require your customers to sign some type of release, standard form, or proposal. Splurge a bit here and go for a professional look...it makes a big difference.

* Aim towards charging by results rather than hourly or per diem - Charging by the hour means that the customer expects you to be onsite or working on their activities for a set number of hours. Charging by the result means that you and the customer have agreed on a concept that can be achieved. The next step is to translate that result into a value for the customer. I have found that I earn more charging by the result, and generally have better control of my time than if I charge by hour or per diem.

* Most important - Always ask customers that are pleased with your work for references. Press for the names and contact information of two people that will benefit from your services. This is the best and fastest way to build your business.

These are just some ideas...hope this helps.

eMeS