Home Biz Startup Checklist You've got a solid-gold home biz idea, but how do you get started? Our simple, all-in-one checklist sorts out the details for you.

It's extremely difficult to come up with a great businessidea and then gather the gumption to actually start the business.But now you have to deal with all the tiny details that make up areal, legitimate business. Legal red tape, marketing, planning,money management-your new and overwhelming to-do list spans pages.That's why we've decided to help you by putting it all onone simple checklist. Below, we go into detail on the differentareas of the checklist. After you've checked out all thisinformation, download our free Homebased Startup Checklist to get started. (Thechecklist is an Adobe Acrobat PDF file; download a free readerhere.) You'll be up and running in notime.

Planning Your Business

• Business Plan. One of the most important stacks of paperyou'll ever come across in your business is your business plan.Even if you're just a one-person operation who wants to make aliving rather than millions of dollars, you still need to create abusiness plan. You'll have your market, competition, plan formaking dough, financials-all in one tidy spot to show investors,suppliers, employees, your proud grandma and, most important,yourself. It'll keep your eyes on that prize, whatever it maybe.

• Marketing Plan. You thought you'd planned it all outwith your business plan? Not quite. Marketing is such an importantpart of your business, it gets a plan all its own. Your marketingplan focuses on your customers-how you'll find them and howyou'll make them your own. It thoroughly and completelyoutlines your product, target market, competition, objectives andbudget, as well as how you'll track the effectiveness of yourcampaigns.

• Financial Plan. This isn't a plan per se, like theones above, but more an assessment of your financial wherewithal.First, make an inventory of your present assets-savings accounts,real estate equity, retirement accounts, etc. This helps youdetermine: a) if you want to sell anything or use the accounts forfunding; or b) what you can use as collateral for a loan. Next,determine your startup costs-all the money you need to get yourbusiness off the ground and floating for at least six months whileyou gather customers and start bringing in cash. This includespaying yourself a salary, because, unfortunately, you can'tlive on air during the startup phase.

The Legal Details

• Business name. When you've decided on your businessname, you'll want to make it legal by filing a DBA ("doingbusiness as"). Most areas require you to register with thecounty and run a notice in your local newspaper. Protecting yournew name with a trademark is also a great idea to ensure both thatno one filches your golden name and that you're not unknowinglyusing someone else's. Your trademark search helps you determinethe latter-your local Yellow Pages and chamber of commerce are easyplaces to start looking. Visit the U.S. Patent and TrademarkOffice's Web site to read their trademark FAQ.

• Zoning. Want to start a homebased business? You'dbetter make sure it's actually legal in your neck of the woods.Check with your city or county, but as many homebased expertssuggest, call anonymously, because if it isn't legal, you mayfind an official coming around for a peek at your office. If it islegal, you still need to find out about any restrictions-likesignage or parking-before you make enemies of your neighbors.

• Licensing. You may need to get several different typesof licensing. The typical city permit is the first most peoplethink of. But your county may also require a business license; thefire department may need to inspect your office; you may need asign permit if you're advertising your at-home business.Depending on your type of business-say, a hair salon or insuranceagency-you may also need to be professionally licensed by thestate. Cover your bases by checking with all your local agencies:city, county and state.

• Tax ID/sales tax. Sales tax laws vary depending onlocale, but one thing is certain: If you don't apply for a"seller's permit," you'll be in hot water. Checkwith your city, county and state offices to ensure you'recollecting the right amount of sales tax from your customers-andthat you're paying the right amount to Uncle Sam. You also needto obtain a tax ID for your own business from the IRS. Check withyour accountant to iron out the details.

• Insurance. You've built it, and they will definitelycome. No, we're not talking about customers. We're talkingdisasters, from employee theft to a plane crashing into your homeoffice. The best way to protect yourself is to insure yourself tothe hilt-and your homeowner's policy more likely doesn'tgive you the protection you think it does. Check out the resourcesin our "Legal Resources" box below, then schedule a visitwith an insurance agent, so you can protect your valuable businessfrom top to bottom.

• Business structure. This is where you decide whichacronym or abbreviation you're going to paste onto the back ofyour business name. Really, it's much more involved than that,which is why you should go over any decisions with an attorney.Whether you incorporate or stay a sole proprietor, go for an LLP orLLC, this decision affects your personal liability and many taxissues.

• Get an attorney. According to our former Startup BasicsExpert Keith Lowe, an attorney is one-third of the professionaltriptych that'll help your business become a success. (A bankerand accountant are the other two-thirds, by the way.) Don't beintimidated when you go on your business-attorney hunt; even ifthey have 10 degrees framed on the wall, they're still workingfor you. Ask lots of questions and don't settle for less thanthe best. Like your insurance agent, a good attorney will be worththe cash outlay, because he or she protects your business.

Taking Care of Your Finances

• Business bank account. Yes, it's time to go beyondfree banking. You need to immediately get a business bank accountto keep your finances in check. "A separate bank accountfacilitates record keeping, and, for some really small homebasedbusinesses, it may be virtually all the bookkeeping records theyneed," says E. James Burton, dean of the Jennings A. JonesCollege of Business at Middle Tennessee State University, andco-author of Accounting and Finance for Your Small Business."It also simplifies tax reporting and permits an easier,faster look at the health of the business-that is, problems in thecash flow of the business aren't hidden by other things goingon in the personal finances."

Burton looks at three things when choosing a businessbank-convenience, services and cost-and says you may find onlinebanking is more convenient than brick-and-mortar banklocations.

• Accounting software. There are a few differentaccounting software programs available, so explore your optionsbefore you invest your time and money. This investment will beworth it down the road when you show up at your paid-by-the-houraccountant or tax person's office with all your records neatlyin hand, or when you need to instantly figure out where yourfinances are at this month. If you're looking into onlinebanking, says Burton, you'll want to match your accountingsystem with that.

• Hiring an accountant. As with finding an attorney,you'll want to get some word-of-mouth recommendations and askmany questions when you look for an accountant. "Work with anaccountant as early as possible," Burton recommends."Then you may choose the set of services you need tosupplement what you can do yourself." Burton also warnsthere's a difference between CPAs and accountants-the formercan "provide pretty much anything you may need."Accountants may be more limited in the services they provide.

• Determining your startup financing needs. This is whereyour financial planning comes into play. You've alreadyinventoried your assets. Now, are you short the money you need tostart your business? If so, what are your financing options?Homebased businesses have a cheaper entry fee than traditionaloffice and retail spaces, so you can probably borrow money fromfriends and family or (carefully!) use a credit card to fund yournew business. You can also try to shorten the gap between what youhave and what you need by cutting expenses. Doesn't your aunthave a desk she's not using? Can you barter your services to adesigner for your new brochure? Get creative in your approach tosaving money.

• Create a budget. Starting out with a budget is apowerful way to immediately take control of your finances. Afterall, would you rather control your cash flow or have your cash flowcontrol you? A good measure for your first budget is at least oneyear. "This budget should be detailed and based upon sounddata, not just wishful thinking," says Burton. "Most newbusinesses are overly optimistic about their revenueprojections-both from the point of view of how quickly the revenuewill start and the level of it. And they tend to underestimateexpenses. Many new businesses start with much less capital thanthey'll need to make the business self-supporting."

Setting Up Your Office

• Analyze your home to find the best space for youroffice. Take a long, hard look at your home to determine allthe places you could put your home office: walk-in closet, extraden or guestroom, space in the garage, enclosed porch. Afterfinding potential places, spend time in each at different times ofthe day to determine if the noise factor and lighting is OK. Also,do these areas have access to the type of outlets you need, and isthere enough space for your furniture and other equipment?"When you decide where you want to set up your home office,give yourself a month to try the space," says home officeexpert Lisa Kanarek and author of Home Office Life. "Ifit's not working for you, find another place."

• Go ergonomic. There are a number of factors to considerhere, but one of the most important is giving up the dining roomtable and kitchen chair and investing in a computer workstation andoffice chair. "The money you save on furniture may wind upbeing spent on visits to the doctor to cure back pain," saysKanarek. Also invest in good lighting, a wrist pad, a headset ifyou spend a lot of time on the phone, and other items that willmake working easier on your body.

• Determine your technology needs. You probably alreadyhave a home computer, and despite your assumptions, you reallydon't need the newest, shiniest PC to run a business. (Unless,perhaps, you are involved in graphics-intensive business.) Acomputer, printer, file backup system, high-speed Internet access,an office suite of software and voice-mail system are all crucialinvestments. A multifunction unit (scanner/faxmachine/printer/copier) may also prove its worth. Be sure not toskimp on your phone and voice-mail system. Your phone will be yourprimary point of contact for your clients, and you need aprofessional system to handle the call volume. Above all, get aseparate office line that won't be answered by your family orheld up by dial-up Internet access.

• Prepare for visitors, if necessary. "Make sure thatany part of your home a client may encounter is clean andorganized," advises Kanarek. "First impressions areimportant, especially when you work from home. Ideally, your homeoffice should be as far away from family gathering places aspossible to avoid interruptions." Kanarek adds that if youhave the space, a small conference table is a good addition to ahome office that has visitors.

• Make your home office safe and secure. Now that yourbusiness is a part of your home, safety and security are doublyimportant. If you live alone, it may be a good idea not to havevisitors or to let people know you work at home alone. Invest in analarm system, and try to keep your office (and expensive equipment)under wraps by not having an open office window at the front ofyour home. As we mentioned previously, talk to your insurance agentabout the type of insurance you need. And always back up yourdata-Kanarek suggests having two copies-and store it offsite.Finally, check your office for safety hazards like loose cords,precarious stacks of books and papers, and too many plugs in oneoutlet.

Gear Up for Marketing

• Create marketing materials. Your marketing materialsinclude any print material you'll use to contact customers,including your business card, brochure, direct-marketing materials,signs (if you're allowed to have them), press kit and labels,if you have your own products. Fully commit to your business nameand logo before you begin printing and distributing anymaterials-you don't want to waste money or confuse anypotential customers by changing your image midstream. Creating asolid image in print solidifies your legitimacy as a newbusiness.

• Build an online calling card. If you're starting anonline business, this is a big job. But if you have a regularbusiness-say, business support services-you still should create awebsite. It's an inexpensive brochure people can accessanywhere. People can find you online, and contact you through thereal-world information you include. Also get used to marketingonline. Find newsgroups that pertain to your profession and beginposting information (not ads). Those interested in your serviceswill find you through your signature, which should include your Website and e-mail address. Look for online directories that suit yourbusiness, and consider creating an e-mail newsletter to keepprospects abreast of your services.

• Join networking organizations. Word-of-mouth marketingis the cheapest and one of the most effective ways to get yourbusiness in front of people. And the way you'll do that isthrough networking. You can approach your friends, family,neighbors and people you do business with. (Always have businesscards ready.) But some people find it easier to start withnetworking organizations, like your local chamber of commerce,trade associations and Business Networking International.