by Shelly Mcrae

Created on: December 28, 2007

Starting a home business requires time, money, and a good idea. If it's your dream to start your own home-based business, you need to ask yourself a few questions first.

1. What, exactly, is my idea?
This may seem silly, but you need to clarify exactly what it is you're selling, be it a service or a product, and to whom you are selling it. By honing in on the specifics, you will know if you have a viable, marketable business product.

2. Who needs my product?
Once you've specified your product (whether it's a service or actual product) you can determine who to market to, and the best possible ways to market to them. This will also allow you to determine who your competition is, and how to compete for the market share.

3. Can I provide my product on a continual basis?
If you are providing a specific product, such as homemade quilts or used books, how will you store your stock, and how will you distribute it? More importantly, can you continually obtain supply to meet demand?

If you're providing a service, can you continually obtain the materials needed to distribute to clients, to make presentations, and build a clientele? Even in this electronic age, clients want to see brochures and prospectuses before investing any funds. And will you be able to live up to the promises made in your literature?

4. Do I have time to run a business?
Do you have enough time to market your product, meet with potential clients, service new and existing clients, and do the administrative work? Can you run the business by yourself?

Time management is an important part of handling a home-based business. Since its you doing the marketing, administrative duties, shipping, receiving, bookkeeping and providing the product, you need to determine just how many hours are available to you for each task.

5. How long can I go without a paycheck?
When starting a business, particularly a home-based business, money needs to be put toward product and operations. That means you, the boss, have to wait for profits before you get paid. It may take several months before you can begin paying yourself. Are you financially prepared to forego a regular income until the business turns a profit?

6. Can I enlist family or friends for support?
Often, family can stand in for hired help, if you don't take advantage, and friends will lend a hand for a nominal fee. A support system is crucial for start-ups, and if your family isn't able to lend a hand, or if other obligations won't allow you the extra hours away from home life

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