Checklist For The New Home-Based Business
© 2014 Elena Fawkner
So, you've decided to take the
plunge and start your own
home-based business. Congratulations!
You're on your way
to true financial independence.
Protect your business and
your livelihood by making sure
you have paid proper
attention to the following:
1. Cash Flow
Do you have adequate working capital
to support your
business (to support you!)during
its early stages? Have you
started your business part-time
while continuing to work
full-time to make sure it is a
viable income producer for
you and that income is adequate
for your needs? DON'T give
up your day job until you can
give an unequivocal YES to
2. Business Licensing
Have you obtained all necessary
licenses and registrations
for your business? Do you
comply with your local zoning
regulations? This is especially
important for both legal and
insurance reasons if you expect
to have clients visit your
If you expect to have clients visit
your home office, have
you taken out insurance in case
they are injured on your
premises? Your normal homeowner's
insurance will NOT cover
business visitors unless you notify
your insurance company
that you are operating a business
from home and the insurance
company endorses your policy to
include this risk.
In all other cases you should take
out a separate policy
to cover your business visitors.
In this regard, whether
you comply with local zoning regulations
may be important.
Your insurance company may refuse
to cover you if you are
conducting your business illegally.
For these reasons it
is imperative that you obtain
all proper registrations and
licenses for your business.
Another type of insurance you should
take out is public
risk insurance. No matter
the nature of your business,
if you are dealing with other
people (and what business
isn't?), you should have public
risk insurance to cover you
in case of a claim for negligence.
A third type of insurance to consider
is income protection
insurance. If you have made
the transition from paid
employment to self-employment,
you no longer have the
benefits that went along with
your paid job which may have
included disability or income
protection insurance. You will
need to purchase this cover for
Once you have left the paid workforce,
you may find that you
have also left behind your medical,
dental and optical
benefits. You need to make
sure you purchase adequate
insurance for these expenses.
5. Accounting and Tax Advice
The best time to seek accounting
and tax advice is before
you start your new business.
Your accountant will be able
to advise you about things such
as the most tax-effective
structure for your particular
business and what types of
expenses you can claim against
your business income. It is
important to obtain this advice
at the beginning of your
business venture so you know exactly
what records you should
be keeping and whether it is best
for you to purchase or
rent capital equipment such as
6. Time Management
Make sure you have thought through
how you will deal with
the day to day distractions that
will come up when you work
from home and plan accordingly.
For example, if you know
you will not be working from 3:00
pm until 8:00 pm because
this is the time between when
your children return from
school and when they go to bed,
try to schedule as many
non-business activities for this
time period as possible
rather than taking breaks during
your business hours. Need
milk? Get it when you're
out picking the kids up from
school, not at 11:00 am because
it's easier than starting
that new webpage. Remember,
self-discipline is your best
friend and vital when working
from home. Procrastination,
on the other hand, is your greatest
Working from home is the dream
of many. Don't let that
dream turn to ashes by overlooking
the "basics" of sound
business and risk management.
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Thursday, 16-Jul-2020 07:36:15 CDT