Financial Tips When Starting a Business from Home

So you're looking to start a home-based business because you are either looking to make some extra cash or looking for a more flexible schedule.  Whatever the case may be, you're going to need to take a few steps to build a strong foundation.  Follow these four steps to help build your new home-based business:

1. Create a business plan—One of the first steps to creating a successful business is to create a business plan.  Creating a business plan is necessary to be able to fully determine if you have done all of the crucial researching that goes into creating a new business.  A business plan will help you decide if your proposed business is ready to launch.
2. Open a business checking account—If you are creating a business, even a home-based business, you will need to keep your business and personal finances separate.  Go ahead and create a business checking account as soon as possible to ensure that you do not accidentally combine the two.
3. Open a business credit card—You will also need to have a business line of credit.  Get a business credit card to help your business in any tough times that it may incur.
4. Check your insurance coverage—Some homeowners' insurance policies will cover a home-based business, however most do not.  Check with your insurance carrier to see if you will need to purchase additional insurance to protect your new business.