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Starting a business can be a daunting task. Especially for the home-based business owner. Finding financing is only one of the issues you face as a new business owner. Because you are going to be working out of your home, you need to be extra careful when setting up your business. You need to have everything planned out before you even open your doors.

The first thing you should do is find out if your city has zoning rules regarding your kind of business. Nothing ruins a thriving business like the city stepping in and shutting you down. Find out what your neighborhood is zoned for and what kind of businesses you can legally run from your home. Not doing this is just asking for trouble.

Now that you know your can run a business from your home, the next step you need to take is creating a business plan. It is important to know where you want your business to go. Just wanting to make money is not enough. You need to know where you want to be 6 months, a year, even 5 years from the day you open your doors. Having a business plan will help keep you on track for your business future. You should also know what kind of business entity you want to start. Sole proprietorship, partnership or corporation. Each has their own unique pros and cons, so research each before you pick one.

Contact your states business regulatory office and find out what licenses you will need in order to run your business. Call the state tax board and ask if your business needs to collect sales tax. Finally, you need to find out what kind of business insurance you will need to protect yourself from potential problems. You should have a policy in place prior to opening your doors.

Purchase any equipment you will need to run your business as well as any office furniture. Even a home office needs the necessities. Desk, chair, computer and fax machine are some of the basic things you will need. Make a list of the equipment and furniture you think you will need, then start shopping.

If you plan of having a web site, purchase a domain name and set it up before you start selling. You need to have it ready to go live when you open your business to the public. Double check all links and make sure your web address is on all your promotional material.

What will your business hours be$%: Are you going to work standard hours, or a more flexible schedule$%: Working out of your home means less travel time, but it also means you have to work harder to keep business and personal time separate. Consider having a separate phone line for business only, and use a call forwarding service for the times you have to leave the house during your posted business hours.

Consider opening a post office box as a mailing address. Just because you work from your home does not mean you will have customers there. Having a post office box will insure a bit of privacy for you and your family.

If you plan on selling a product, now is the time to get your inventory set up. Contact your vendors and set up accounts. Find out how long it takes to get an order delivered, if there is a cost break for higher quantities, and set up an account so you can order on credit.

Purchase your business cards and stationary, and get your shipping supplies together. Anything you will need to ship your product to your customers you need prior to opening your doors. This includes boxes, bubble wrap, and labels. Put all your supplies in an easy place, near where you plan on keeping your inventory.

Once you have everything set and are ready, open your business to the public and be ready for your first customer.

As with anything having a solid plan of action is the key to success. And know what you are going to do when starting your business will be a huge step towards succeeding in your new chosen field.