Home-Based Business Start-Up Costs - How to Keep Them Under Control

By: Laurie Hayes

You’re an entrepreneur! You''ve made the decision to work from
home and it''s time to get your office or shop set up.

You have taken care of the legalities, you know who your target
market is, you have an exceptional product or service and you''re
ready to get it out there.

This is a very exciting time and you want everything to be
perfect and appealing, including your workspace.

You buy a new desk, computer, printer/copier/fax/ scanner,
chair, calculator, office supplies, file cabinets, bookshelves,
and decorative accessories to make your office attractive.

You may be spending a great deal of time in your workspace and
it is important that it be comfortable and ergonomically
designed.

Although comfort and functionality are important, be mindful
when furnishing and equipping your workplace.

Be aware of what is absolutely necessary and what is a
nice-to-have.

Some of today''s business giants started by selling out of their
garages.

It was not glamorous in the beginning, but it was necessary to
start their businesses on a solid foundation.

Now, some of these successful entrepreneurs work out of
magnificent skyscrapers, have mansions in New England and drive
vintage sports cars.

These smart businessmen and women realized that everything
didn''t have to be perfect or aesthetic when they started.

Some new home-based business owners feel it is necessary to buy
state-of-the-art equipment, sign up for all of the prominent
subscriptions and memberships, stock their shelves with loads of
inventory, have expensive art on the walls, and create an air of
wealth and success in order to impress prospective clients.

This kind of thinking can put you out of the race before you
even start running!

I remember when I was a consultant for a MLM company. I thought
I had to carry every product available to impress my customers.

A startling realization for me was that my biggest show in sales
was when I had the fewest number of pieces on display.

The customers were able to see the quality in each product and
did not have to see every piece in order to make a buying
decision.

When I decided to terminate my business, I had a closet full of
products. I sold quite a few items to another consultant, but
still had shelves stocked with unopened product.

For about five years, I didn''t have to buy a birthday, wedding
or Christmas present because I had a massive amount of untouched
gifts in my home office.

When I decided to start my coaching business, I was older and
wiser, and grateful I made many of my mistakes at an earlier
age. I learned from them and knew not to repeat them.

I started small. I had a computer, an old, but reliable printer,
a 15-year old calculator and desk, and a comfy office chair.

All I needed was a quality phone capable of handling multiple
lines and a headset.

For the first twelve months of my business, these items were
more than sufficient.

As my business grew and profits increased enough to support
additional spending, I upgraded my computer and printer and made
improvements in my office.

When starting your new home-based business, understand that your
first year can be financially demanding.

Until you have a steady, reliable source of income, it is wise
to avoid excessive spending and unnecessary purchases.

Be honest with yourself when making purchases for your business.

Yes, you need a good quality printer with fax/copy and scanning
capabilities, but do you need the one that is designed for high
volume, large scale copying?

If you''re not in the copying business, a lower volume, lower
priced multi-media product will more than serve you.

When starting your business, sit down and determine what you
absolutely need to get things going and what the costs will be.

What will your monthly operating expenses be? For example:

-internet access -bank charges -phone/fax lines -auto responder
and shopping cart (if online business), -printer
cartridges/office supplies -advertising, etc.

Then determine when you expect to start bringing in sales. How
much will you need to earn every month to cover your operating
expenses?

Not until your basic monthly expenses are covered and a surplus
of funds is created should you begin to purchase the nice-to
haves.

Be frugal during your first year as a home-based business owner.
Monitor and understand where your money is coming from and where
it is going.

Keep a watchful eye, maintain strict control and pace your
spending according to your profits.

By creating structure and remaining vigilant in your spending,
you will build a solid foundation for your business.

Build a strong foundation, be financially responsible on an
ongoing basis and the sky will be the limit!

Laurie Hayes:
Laurie Hayes is a Life Strategy/Small Business Coach and founder
of Where the Heart Is Life Coaching.

Laurie specializes in assisting home-based business owners who
face the challenges that come with working from home. She is the
author of numerous articles and a bi-weekly newsletter, "The
Heart of Living."

To subscribe to her free newsletter and learn more about
coaching, visit www.wheretheheartis-lifecoaching.com