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Starting a Home-based Business 
 
by Chrissie May 20, 2005

Financing and Business Plans

Your business plan should include many factors that will help you sort out what you need to start and keep your business running on a month-to-month basis. Most importantly, when starting out, be conservative, ask yourself if you really need that piece of equipment or do you merely "want" it? Many times, out of excitement, we want things that aren't essential at that moment. Save those purchases for when your business is making money!

Some questions you should have answers to:

  • How much money will you need to start your business?
  • How long will it be until you break even?
  • How much money will it cost to run your business on a monthly basis?
  • What supplies and/or equipment do you need to get started?
  • Who is your target market?
  • How will you reach them?

Next, how will you finance your business start up? Will you use a credit card? Do you have savings set aside that you can use? Will you need a small business loan? These are important questions for you to decide.

Your Business Name & Logo

At this point, we have our idea, we scoped out the competition, picked our business structure, figured out our finances, and now what… Next, it is essential to make sure that the business name you are going to use is not already in use by someone else. You can do a tradename search to make sure it's not already in use. It would not be fun, after you started your business, to receive a cease and desist order enjoining you from using that business name!

Your business name and logo are vital to the success of your business. They should convey what type of service and/or products you offer. For example, the other day I had lunch with a business acquaintance. As we left the restaurant, we saw a tradename on the back of a Ford F150 that said "Mike's Magic." Instantly we both thought children's parties or something of that nature, but it turned it was a cabinetry business! Most people would probably think the same thing: his logo doesn't convey his business very well.

Your business logo and name are how you brand your business so that your customers will recognize and remember who you are. Your logo should be on all correspondence, business cards, and forms that you use for your business.

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