MONEY COMMENT
Four Steps To Starting A Home Business

By David Kuo (TMFDragon)
October 25, 2004

The commercial world is full of wonderful stories of how many well-known businesses started from humble beginnings.

Did you know, for instance, that Hugh Hefner assembled the first edition of Playboy magazine on his kitchen table? Another famous kitchen start-up was Laura Ashley who, together with husband Bernard, cooked up textile designs from their London home. Within four years they were shipping fabrics to customers in Australia, France and Holland.

It just goes to show that you don't need heaps of money and a fancy office to get started in business. In fact, beginning modestly is often a good piece of advice for budding "homepreneurs".

Choosing A Business

Before you start, you need to choose a business. Some people start by turning their favourite hobbies into proper business ventures. For example, linguists might consider a translation service, in which foreign texts are translated into English and vice versa.

Keen gardeners may consider selling their garden produce to local restaurants, and pet lovers might ponder a pet-sitting or pet-grooming service. I know of a wonderful cake maker who has built up a lucrative cake-decorating business, which she continues to run from her home. Another friend of mine repairs watches from home for high street jewellers.

Companies such as Kleeneze, Body Shop and Ann Summers are always keen to increase exposure of their products through network marketing. In fact, choosing a business is limited to some extent not by what is possible, but instead by what is right for you.

The Business Plan

Next you need to write a business plan, even if you do not intend to raise money for your venture. This might seem intimidating, and in my view, it should be.

It should include in detail, what your business is about, how it will be run, your potential market and how much money you plan to make. The business plan should crystallise your thoughts on paper, and if you can't do that, then you may need to go back and re-think your business plan and do more research.

Money Requirements

When you business plan is completed, you may be shocked at just how much money you may need to get your venture off the ground. In my opinion you should try to avoid borrowing money at all costs. Young businesses seldom make money initially, and the additional burden of interest payments will not help. Consequently, look to start modestly and to make use of currently available financial resources.

Legal Requirements

Finally, make sure your business is legal, and your local authority will advise you on any planning permission that may be required. For instance, your neighbours may not take too kindly to convoys of delivery lorries or customers turning up at your front door on a regular basis.

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