Wholesale products, Manufacturing and Merchandise Seller Blog » Blog Archive

August 10th, 2008

There are a lot of benefits to running a small business out of your home. However, if you’re operating as a retailer, there are a few reasons you’ll want to abstract your company from your home. There are obvious safety reasons for which you should limit the number of times you use your home address and and personal phone number on-line. Separating you and your personal information limits the amount of exposure you have to identity thieves, or anyone else out there collecting private information.

First, you should rent a private mailing address so that you don’t have to use your home address as your business address. Mail boxes are usually available from box and postal shops, and take the form of the stores street address plus a suite number. It will cost you likely less than $100 per year and is as simple as having a post office box. This way, you have the safety of abstracting your publicly-known business address from your residence. In addition, should a curious customer look you up by your address, they will likely find a commercial area, not your residential street.

Second, have a dedicated 2nd phone line installed in your home for the sole purpose of business use only. Make sure that everyone in your household understands that when the business phone rings..it is answered in a professional manner clearly identifying your business name. Personal calls come in on the house phone and your five year old child should never be allowed to touch your business line. In addition, purchase a digital answering machine to catch the business calls after hours.

Lets not forget about all thing legal. Treat your home based business just like a traditional brick and mortar location. Check local ordinances and make sure you apply for a business license if required by your city offices. Depending on where you live, there is usually a nominal fee ($5 where this author lives), and they will provide you with your business license certificate upon application submission.

Register your company name with your county and city by filling a DBA, or Doing Business As (also called a Fictitious Business Name in some places). This is simply a legal connection between you and your company name. You’ll fill out a few forms, post a declaration in a local newspaper (the county will have more info on where and how) and you’re good to go. A fictitious name statement is required if you want to open a business checking account, which is another must for budding entrepreneurs.

As you can see there are several steps necessary in starting a profitable home based business. I will back up at this point to advise anyone to put some serious time into creating a business plan. You ideas and organization will pay off through years of consistent growth and business success.

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