There are a number of important factors to consider before starting your own business. The first involves choosing the right kind of business to start. Each of us has different skills, abilities and interest. To give yourself a fighting chance, you need to perform a honest self-evaluation to determine what kind of business would be best for you.  Once you determine what type of business you'd like to start, then you need to create a plan for starting and operating it.  There are a number of "good" books available which cover in detail the process  to develop a business plan and how to match your aptitudes, interests, hobbies and business skills to a home-based business.  A visit to a local public library or a major bookstore will provide you with several sources to start your home-based business. This is time well spent in researching your potential business venture.

Some people seeking to start a home-based business are looking for a change from an unchallenging job.  You do not want to make the same mistake twice -- so spend the time necessary to inventory your talents by using the wide array of written resources available to you before you invest your time, energy and money in starting your home-based business.   A number of self-assessment tools are included o n the Michigan Jobs & Career Portal - Career Exploration  that can be accessed on personal computers at most public and college libraries, local Michigan Works!  offices, career centers, and the Michigan Virtual University .

The list of home-based businesses provided in this section are by no means all inclusive.  The businesses represented offer variety, have minimal educational requirements, and low start-up costs.  We've intentionally omitted businesses which would take a great deal of education or huge capital investments. Most people that are interested in starting home businesses will be sole proprietors (one-person businesses) and do not have the time or money to undertake a degree or extensive training to prepare for a career change. Therefore, the businesses listed below will offer reasonable earning potential, ease of start-up, and minimal educational requirements.

CREATING A HOME OFFICE

A home-based business should have enough space available to  operate smoothly. While a spare bedroom may be sufficient for some businesses, more space will be needed for a gift basket business.  Some small business owners may choose to utilize larger quarters (i.e. basement, converted garage).  The business office should be located away from routine family activity, so that a suitable work environment is maintained. For this reason, running a business from the kitchen table should not be considered.  If you want your clients or c ustomers to take your business seriously, you must present a professional business atmosphere. Also arranging a work area away from family, will allow you to focus on your work and have fewer or minimal distractions.

In order for a  home-based business  to  run successfully, you must develop a definite work schedule. Although, you have flexibility as a home-based business owner, you should take into consideration the time of day you are more energetic and alert.  For example,  are you a morning, afternoon, or late  night person?  Be sure the length of your day accomplishes the  tasks that require your immediate attention without becoming a workaholic. Your most complex tasks should be completed, around the time your focus is greatest. You may want to consider saving mundane tasks like filing for later. Another way to stay motivated is by dressing in a consistent way. Your attire should reflect the type of work you are doing. Dressing the part daily will make you feel great about yourself and your business.

HOME OFFICE EQUIPMENT

Your home-office should be equipped with these basic office furnishings at these approximate costs:

To keep your office furnishings within a reasonable price range you may wish to consider used or remanufactured office furniture (check The  Yellow Pages  under Office Furniture & Equipment Dealers) or purchase new moderately priced furnishings through a discount office supply or membership warehouse.

Most business offices will need telecommunications and computer equipment. The following is a general list of office furnishing you may want to consider:

The following optional equipment list  may be added to boost your businesses productivity or greatly increase the effectiveness of  your presentations.

BUSINESS SOFTWARE

Accounting

• Microsoft Office Accounting Professional 2008            $199

• Peachtree Complete Accounting 2009 (Sage)              $269

• QuickBooks Pro 2008 (Intuit)                                     $199

• Premier Accounting 2008 (MYOB)                              $299

Business Planning - Plan Writing

• Ultimate Business Planner 4.0

           (Atlas Business Solutions)                                      $ 99

• Biz Plan Builder v10 2008 - Download Only (Jian)           

           Windows Vista/XP/2000/NT/98 (Requires MS Office)  $129

           Macintosh OS 9 & 10 (Leopard/Jaguar/Tiger)             $129

Contact Management

• GoldMine 6.7 for PC

        (GoldMine Software)                       $ 179

• ACT! 10.0 (Sage)                          $ 229

Personal Information Management

• Microsoft Outlook 2007 (Microsoft)       $ 109

• Lotus Organizer 6.1 (Lotus)                  $ 62

• Prophet 5 Personal Edition (Avidian)     $149

• Project Management

         Microsoft Project 2007 (Microsoft)         $ 599

• Human Resources

           HR File Builder v4  (Jian)                     $ 349

           Staff Files 5.0 (Standard)                                   

            (Atlas Business Solutions)               $295

While a telephone with an answering machine may meet some small businesses' needs, telephone service providers offer many enhancements to this basic system.  Some have even created special departments to assist small business owners in expanding their telephone services. Not all of the services listed below will be available in all areas, please check with your specific service provider.  Many of the service upgrades include:

VOICE MAIL - A computerized messaging system allows callers to leave messages in "electronic mailboxes" so that no  caller ever gets a busy signal.  If you are on the phone, out of the office, or simply need some quiet time to work, your voice mail can handle hundreds of voice messages simultaneously.  You may retrieve these messages using any touch-tone telephone by dialing in your private code.  Pager notification of voicemail may be available through your telecommunication provider.  This service provides a professional image for your business and is preferable to an answering machine because of consistent voice quality and technical reliability.

ADDITIONAL LINE - With an additional telephone line you can keep your personal and business calls separate.  You may also need additional lines for a modem and/or a fax machine.

MULTI RING - Lets your business have up to three separate numbers, each with its own distinctive ring, all on one phone line.   Multi Ring is perfect for separating business calls from personal calls, or sales calls from service calls.

800/888 SERVICE - An 800/888 business line allows your customers to reach you easily, free-of-charge. This advantage may result in more leads and, therefore, business growth.

SPEED CALLING - If you routinely call the same suppliers or customers you may wish to obtain speed calling. Instead of dialing the usual 7 to 10 digits, you merely dial 2 digits.

REPEAT DIALING - Checks up to 10 busy lines and alerts or connects you when the lines become available.

AUTOMATIC CALLBACK - Allows you to call back the last incoming call .  If the line is free the call goes through .  If it is busy, Call Return will check the line for up to 30 minutes, and let you know when the line is free with a distinctive ring.

THREE-WAY CALLING - This service allows the caller to confer with two other callers at the same time, allowing business decisions to be made quickly without the need for face-to-face meetings or numerous single telephone conversations.

PAGER - When your business needs you to be readily available, a pager allows you to constantly stay in touch. To page you, a client dials your assigned pager number, waits for a tone and then punches in the phone number where they can be reached or a text message. The pager then notifies you that you received a call by beeping, displaying a text message or vibrating silently.  You then are able to return the call at your convenience. 

CALLER ID - By knowing in advance who is calling, businesses can provide better customer service. You can greet the caller by name, be  prepared by gathering needed information, or delay a response until a more appropriate time.  Caller ID also maintains a log of calls that you are unable to answer, so that you may return them at your convenience.

CALL WAITING - This service increases your ability to serve customers by allowing your business to handle more than a single call.  Customers always get through and you can switch between calls easily.  However, when you fax or are on an important call, a cancel option blocks any incoming calls from interrupting.

CALL FORWARDING - This feature allows you to route your calls from your home-office telephone to your pager, car phone or cellular phone.  When you are out of the office you can still receive all your phone calls on any other touch-tone telephone.

INTEGRATED SERVICES DIGITAL NETWORK (ISDN) - This service allows voice and data transmissions to occur simultaneously.  Data can be transmitted nearly nine times as fast as data is currently via a standard modem.  This will significantly reduce the cost of downloading files or transmitting complex documents.  Users can speak on the phone, transmit or receive a fax and/or data on a single ISDN line without interruption.  Depending on a user's current level of telecommunication options with their phone service provider, other expanded features will be available using your  personal computer. You should contact your local phone service provider to speak to a service representative regarding your business telecommunication needs.

INTERNET ACCESS

There are several different types of internet services including traditional dial-up service using  an existing telephone line and computer modem; digital subscriber line (DSL) that enables high speed transmission of digital data over regular copper telephone lines; or service through a cable modem that connects to the internet via your cable network rather than through a telephone line. DSL and cable modem provide significantly faster delivery of data than dial-up service. Be sure your modem speed is compatible with your service providers. 

There are a number of service providers available throughout the state. Below is a list of major Internet service providers and how to reach them for more information:

Wireless Internet Networking

Wireless networking technology provides easy access to the internet or your company's files.  Wireless options such as 802.11a, 802.11b, 802.11g and 802.11n were developed for this purpose.  Wireless networking is ideal for those individuals who utilizes a laptop PC, always stay on the go and/or attend business meetings around town.  Wireless networking will allow users to access their most critical files at a data transfer rate up to 11+ Mbps (mega bytes per second), check e-mail, and conduct business at any place and time without the extra hassle of cables and cords. 

As a small business owner, there are several things that you can do to implement a wireless networking system for your business. First, you will have to install a PCI wireless card for your laptop or purchase a USB wireless adapter for your desktop PC.  If you plan on purchasing a new laptop for your business needs, make sure the laptop comes equipped with a Wi-Fi (Wireless Fidelity) Certified card which will allow you to connect to a 802.11a, 802.11b 802.11g, or 802.11n system.  You can purchase these network cards wherever PCs and PC supplies are sold.  Secondly, you will need to install a wireless Access Point router (that connects to a DSL or cable modem) within your place of business or home. This will allow you to access your files anywhere throughout your business or home as long as your laptop (desktop PC) is within the designated range of the Access Point router.  It is critical to have your Access Point router located in a centralized area for easy access. 

Test your laptop or desktop PC by running the appropriate program or utility software to check the connectivity to your network.  You may connect other computers and/or printers to your network by purchasing additional wireless LAN PCI cards or USB adapters after you've successfully verified the connection to your network.   A wireless router connected to a DSL or cable modem will allow you to route traffic to and from your wireless PC as well as share the internet connection between your network throughout your home-based business.  There is wide variety of routers available.  It is important to assess what type of router you will need to make your home-based business become more efficient.  You can purchase a wireless router wherever PCs and PC supplies are sold.  Finally, take the simple steps necessary to secure your network by changing your default password, activating your WEP (Wired Equivalent Privacy), or by purchasing and/or downloading a firewall protection program to secure your network. (See the security section below for a list of firewall vendors). 

There are many Internet Service Providers that offers wireless networking as a service to its customers.  You can have the option of setting up a wireless network within your home-based business or you can access your network/files from various locations throughout the country by utilizing the wireless network "hot spots."  The wireless networking "hot spots" are essentially beneficial when you are traveling from place to place.  You will have access to these "hot spots" in public areas such as airport terminals, restaurants, hotels, etc.  The following table lists some wireless network service providers and their contact information:

Publicizing your home-based business can be done within a reasonable price range. One way to promote your business, would be to create a logo or signature appliqué and have it appear on company stationery, business cards, and promotional brochures.  You can create your logo by using desktop-publishing software. You may wish to design your own, use a free-lance service, or contact a printing shop in your area.   A print shop should be able to provide a package including logo design, business cards, stationery and cost efficient business brochures. You can save hundreds of dollars by utilizing a computer to design high quality business products. You may also want to consider, designing a web site or having a contractor develop a web site for you so that you are able to reach a wider variety of customers. If your company needs a high maintenance web site then you may wish to purchase web hosting services.  A web hosting company, (typically an internet service provider) leases server space and web services to businesses/individuals that want a web or e-commerce present but do not wish to maintain their own servers.  Web hosting costs are determined by the amount and complexity of the services needed to build and maintain the web site.  Such services may include credit card processing or Structured Query Language (SQL) databases.  The following table lists major web hosting providers:

For security purposes and a nominal  fee (usually under $60) security software is available to businesses with Internet access. Security software such as Firewalls can detect and defeat hackers and provide security from information theft.  This software can also lock-out certain programs from the Internet.  Providers of this software include:
IBM Black Ice Defender , McAfee (Personal Firewall) , ZoneAlarm , and Symantec Firewall .

Wireless handheld units, personal digital assistants (PDAs), are now   available to allow users to remain continuously connected to a wireless network (Internet) and receive their e-mails constantly.  There is no need to download and retrieve e-mail, as it continuously streams from the network to the handheld device and discreetly notifies users as each e-mail arrives.  These handhelds integrate the features of a personal organizer (calendar, address book, task list, memo pad) and e-mail connectivity (both send and receive messages) with the ability to update information between the handheld unit and your personal computer.  Some leading manufacturers of these handhelds include: 
Hewlett Packard Handheld , Apple iPhone , Palm Handheld and Research in Motion (BlackBerry) .

Depending on the home-based business you start, you may   incur additional expenses such as membership fees for business or trade organizations, as well as needed training programs (computer or specialty equipment) or seminars (to stay up-to-date in your field).  Investing modest amounts for these additional business needs may increase productivity and market share for your business.  Also, many of these costs can be taken as business deductions on your federal income tax.   You may want to consider referring to the " Federal, State and Local Taxes & Regulations " section for a list of Allowable Business Deductions.

SELECTING YOUR HOME-BASED BUSINESS

The following list of home-based businesses will include a brief description of the business and the approximate start-up costs.  These costs include office furnishings, supplies, and specialty equipment (computers, tools, etc.).  A salary for the proprietor is not included in this estimate.  You will initially, want to consider your living expenses for the first six months to a year and, how long it will take for you to establish your business. Many people start their business on a part-time basis while they continue their full-time employment elsewhere.  Others rely on a spouse who is employed to provide steady income during this start-up period.

ABSTRACTING SERVICES

If you like to read and have a special expertise or affinity for technical subjects, an abstracting business may appeal to you. The main job of an abstracting service is to read content of all kinds, such as articles from journals and magazines, and distill it into a brief synopsis of ten to fifteen sentences for database storage and retrieval. In some cases, the articles are indexed instead of, or in addition to, being condensed. Indexing means that the abstractor will create a list of key words based on the article or selects terms from a controlled vocabulary list so that a computer can locate an article quickly. Abstracters may also create abridgements of larger works into shorter ones

Estimated Start-Up Costs: ----

ANIMAL GROOMER

The popularity of house pets, particularly dogs and cats, has helped create a number of small business enterprises from pet supply stores, animal kennels/hotels for boarding, exercise and walking services to pet cemeteries.  Animal grooming is a business with a repeat customer base.  A groomer should love animals and have some artistic ability. Those interested in animal grooming should attend groomer's classes offered by career training schools. Many states require specific training and licensing. Currently the State of Michigan  does not require licensing. This job requires patience and physical stamina, groomers may work from their residence by utilizing a converted garage, workshop, or a vehicle. Marketing for this type of business can done  by using direct advertising (Yellow Pages, mail inserts, etc.). Groomers  may want to consider stocking up on specialty products to increase sales.

Estimated Start-Up Costs: $2,000 - $10,000

APARTMENT LOCATOR

This service is usually operated in densely populated metropolitan areas where there is a large apartment complex or a scarcity of rental units. This business may not provide sufficient income. Business owners may want to consider supplemental income. The targeted population for an apartment locator is upscale renters or those with unusual rental needs.

Estimated Start-Up Costs: $2,200 - $3,500

APARTMENT PREPARATION SERVICE

When apartments are vacated by tenants, apartment owners may turn to outside maintenance contractors to clean, repair, re-plaster or paint apartments before new tenants move in. Smaller apartment developments tend to use this service rather than maintaining full-time staff to prepare rentals for new tenants.

Estimated Start-Up Costs: $1,500 - $5,000

ASSOCIATION MANAGEMENT SERVICE

Organizations of all types from nonprofits with a local mission to professional and trade groups and even the chambers of commerce are contracting out their management functions. Since many organizations have grown beyond the size that volunteer officers can effectively manage, but are not large enough to justify renting office space and hiring employees, they turn instead to the services of association managers, people who make a living administering professional and trade associations on a contractual basis. The association manager provides a cost-effective solution to staff an organization. He or she also enables the organization's volunteer leadership to concentrate on program and policy issues rather than administrative tasks and provides the organization with continuity during leadership changes.

Association management services, also called executive director services, have existed for over one hundred years. What association managers specifically do depends on which functions their clients want them to handle. However, to serve clients well, they need to be prepared to do just about everything an organization needs to have done.  

Estimated Start-Up Costs: -----

AUTOMOBILE DETAILING

Auto detailing involves more than washing or waxing the exterior of an auto.  Detailing implies a thorough cleaning and restoration of an automobile's interior and exterior surfaces. This business should be in a centralized area that is convenient for customers. A van with special cleaning and power equipment will be needed.

Estimated Start-Up Costs: $5,000 - $20,000

BAKERY/PASTRY SHOP

The bakery and pastry shop offers an assortment of breads, cakes, cookies, brownies and pies that are made fresh on a day-today basis.  The bakery and pastry shop may also specialize in custom orders for weddings, birthdays, anniversaries and graduations. Having a good and quality product plus the use of various advertisement mediums will not only attract new customers but it will also gain their repeat business in the future. 

Estimated Start-Up Costs: ------

BALLROOM DANCING INSTRUCTOR

The days of big bands and ballroom dancing is kicking in to high gear.  Utilizing skills such as marketing, sales, and a good knack for teaching formal International and Latin ballroom dancing styles (such as the Fox Trot, Viennese Waltz, Jive, Quick Step, and Tango) will be sure to generate extra income.  Classes may be taught at a community center, recreational center, or another public facility.  Ballroom dances may be taught on a full-time or part-time basis.  

Estimated Start-Up Costs: Under $2,000

BEAUTY SALON

The beauty salon offers products and services that promotes healthy hair and nails.  Clients can get services such as a perm, curling, cut and style, semi-permanent to permanent hair coloring, manicures, pedicures, etc. There's unlimited potential for expansion and growth as the client base continues to grow and in addition to the new products and services are being offered at the salon. Employing other licensed personnel such as cosmetologist and nail technicians will also help contribute to the expansion and growth of the beauty salon by increasing the revenue and the clientele that will patronize the establishment.

Estimated Start-Up Cost: ------

BED AND BREAKFAST INNKEEPER

The bed and breakfast inn business developed from the "boarder" concept of past generations.  Although using a basic format of providing sleeping accommodations and a breakfast meal for a set price, many bed and breakfast inns provide additional amenities such as private baths, area tours, and unique experiences (such as gardening or wildlife observation).  To be successful in this business you should enjoy sharing your home with others, cooking, and housekeeping which must be done on a daily basis.  Perhaps the most important factor for success is the location of your home.  In order to attract enough tourists and business travelers to make your B & B profitable you need to be located in a popular vacation spot or busy commercial location. If you do not already own a suitable home for this business, start-up costs may be prohibitive.

Estimated Renovation Costs: $10,000 - $35,000 (per room)

BOAT/YACHT MAINTENANCE

Provide services (cleaning, waxing, painting) to owners of large boats and yachts.  Target owners of boats greater than 38 feet long.  The person who owns such a costly boat generally does not have the time or interest to clean and maintain it.  For marketing purposes you may want to consider posting fliers at area marina sites, and boat/yacht clubs.  In colder climates such as the Great Lakes region, the production of business will be based on the seasons. In warmer climates such as Texas, California and Florida   your business should be successful year around. Once you have a large customer base you may wish to hire employees to clean the boats while you focus on expanding your customer base.

Estimated Start-Up Costs: $1,000 - $3,000

BOOKKEEPING SERVICE

Bookkeepers maintain financial records for businesses. Services of bookkeepers may include any or all of the following:

recording business transactions; making deposits and reconciling bank statements; maintaining business ledgers;  billing, payroll, accounts receivable and payable; or maintaining financial records for tax preparation.  The increasing number of small businesses should provide ample business opportunities for bookkeeping service operators.  A bookkeeper with a personal computer and accounting software can provide a highly efficient service to small businesses.  By using a laptop computer, a bookkeeper can do onsite bookkeeping for customer convenience.

Estimated Start-Up Costs: $2,500 - $10,000

BUSINESS BROKERAGE

Business brokers, like real estate brokers, try to match a seller with a buyer. Brokers by law can only represent one party (either the buyer or the seller).  As a result, most business brokers represent the seller.  Most business brokers handle specific types of businesses such as restaurants, medical practices, or fitness facilities.  They may also handle many types of businesses, but limit themselves to a limited geographic area.

Estimated Start-Up Costs: $3,000 - $15,000

BUSINESS CONSULTANT

Being an expert in marketing, setting up new business ventures, reorganization, or revamping the company's image are just some of the things needed to become a savvy Business Consultant. Setting up work schedules, working as an independent contractor for specialized projects and/or assignments are just some of the perks available for being a Business Consultant. It is important to have superior selling and marketing skills, excellent written and oral communication to be able to persuade potential clients of why they should become a customer is needed to make the business a viable success.

Estimated Start-Up Costs: $10,000 - $50,000

BUSINESS NETWORK ORGANIZER

A business network organizer solves two of the most common problems small-business owners have. First is their need to get business. 70% of small business owners say getting enough customers is their #1 challenge. Second is finding time to exchange information with other small-business owners in their community. A network organizer sets up groups of small-business owners to meet regularly, usually weekly, in order to give one another business referrals and to help one another get business. Each group or club has only one person from any particular business or profession, so there's no competition among the members of the group. Such networking organizations are a structured way for professionals and business owners to refer clients and customers to one another. Also called word-of-mouth marketing, getting business through referrals from other people has always been a common practice. Traditional service and fraternal organizations such as Rotary, Eagles, Elks, Lions, and Moose have long served as indirect and informal ways of obtaining referrals. Many of today's small-business owners, however, are seeking a more focused approach to getting referrals by joining what are referred to as leads clubs or networking groups. The sole purpose of these groups is to enable members to give and get referrals.

Estimated Start-Up Costs: -----

BUSINESS PLAN WRITER

The small business sector is exploding, with new start-ups daily. There is a resulting need for effective business plan writers. Many entrepreneurs have creativity (the business idea) or sales ability, but often lack the writing ability or organizational skills needed to write a business plan.  Although several businesses start without a business plan, most successful businesses have a plan which forms the framework that defines the business. A good business plan keeps a business on track and consistently focuses on what it expects to accomplish. Without a solid business plan, acquiring financing for a business is extremely difficult.  While the b