Here are a few more items you may need to consider before starting a home based business.
Financing: If you have to go into debt to start a business (avoiding this in a bear market is preferable), don’t put it all on high-interest credit cards. You may not be able to get a small business loan or home equity loan unless (1) your credit rating is good AND (2) you have a recent pattern of decent income. Some organizations now negotiate for lower interest payments on credit cards.
Legal Matters: Tax code? Local ordinances? State licenses? Probability of lawsuits? OSHA?
Material Handling: Do you have to store an inventory? Do local ordinances limit or otherwise regulate storage (e.g., of flammable or obstructive material)? Are your materials shipped from overseas, and is supply reliable? If you ship overseas, what are the probable costs and procedures?
Competitiveness of the Field: Are you the only guy on your turf or in your niche? If not, what makes you stand out in the crowd from the customer’s point of view? Can you work towards a unique selling proposition?
Potential Market: Do large groups of people have a crying need for what you offer? Do specific types of people really want what you offer? Is your market local or international? Is the timing right?
Marketers say you should start with a market that has a crying need, and only then work your way toward a product or service to meet that need.
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