Chapter 7. Get the Ball Rolling: Business and Budget Plans

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It is exciting to realize that the dream in your head could really come true ”starting your very own company. If this is where you are at this moment then it is time to take the next step. The next step is to make yourself "legit" by deciding on your legal structure and constructing a business plan.

If you are serious about starting a home-based business, no matter how small or simple, you will want to set it up correctly from the beginning. Playing catch-up later on will cost you time, money, or even your business. Putting your business together with a well-thought-out plan can make the difference between success and failure.

The business plan is where you break your idea down into its important components . How are you going to manage, finance, and market this business? Have you worked out a realistic budget? What is a realistic budget? Getting all this information down in black and white will show you if you are ready to take the leap or if you require more time to plan and organize your idea. This would be a great time to seek out others in the same business for advice. Some may even be open enough to tell you where they made their mistakes. Believe us, it is much cheaper to learn from someone else's mistakes then your own. Once you have worked out a business plan, it's time to decide on a legal structure. In the next section we will go step-by-step through the various kinds of legal structures.

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