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Are you thinking about starting a home based business? Here are a few things you need to think about before you decide to take the plunge.

1. Business Licensing

Depending on what state you reside in, you might require a license or other paperwork in order to run your business. Some areas may require nothing from you until you start earning over a fixed income, while others may want to to register your business with the state before you begin conducting any business activities. And indeed, this can apply to even home based, internet businesses. Check with your local agencies to discover what, if anything, you must have in place legally in order to get going.

2. Zoning

If your home business opportunity involves you doing actual, face to face business with members of the public, then you may need to get a zoning licence. Seek advice from your local agencies about what, if any, business activities are limited when they are run out of a residence. Many cities have strict and often perplexing local zoning laws, so it pays to talk to somebody who can tell you exactly what, if anything, you need to do to be in compliance. If your home based business involves food, for instance, you may also need other permits in place.

3. Materials & Equipment

What do you require in order to launch your home based small business? You need to know exactly what you will need, and how much it will cost. For many home based businesses, all you'll require is a PC and internet connection. However, depending on what you are doing, you may need special equipment, software or materials. It's a good idea to write a business plan and include all the stuff you have, and the things you have to acquire, and make up a budget.

4. Space

How much space do you need in your house for your home based business? You may only require work place, but if you wish to sell and ship products you need to make sure you have enough room to store your inventory. To benefit from regulations, you should have an area devoted to your business activities, such as a spare bedroom converted to an office. This will let you claim a percentage of your rent or mortgage repayments, utilities and other home expenses.

5. Insurance coverage

Finally, find out if you need insurance. In most cases, establishing a home based business won't require this, but if you will be having people at home for business reasons then you may need liability insurance in place. If you have inventory, insuring it against damage and theft will keep your business secure.

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