Home-based business industry reports from the Small Business Association claim over half of all small businesses are based from the home. With so many changes in communication and online commerce, you can choose to run your own business from the comfort of your home, eliminating overhead and high costs associated with renting or owning a separate building.

Use home-based business reference materials to help you choose the right business, start your new venture and make sure you have the right legal, tax and insurance information. Whether you want to sell homemade crafts online, own a home-based franchise or make extra money from your computer, researching the opportunity beforehand ensures you make fewer mistakes at startup.

Conduct home-based industry research to:

1. Make money doing the things you love while working in your home office.

2. Ensure you have the correct tax forms and insurance for your new business.

3. Gain industry knowledge and startup tips with small office information sources.

Action Steps
The best contacts and resources to help you get it done

Use home-based business information from online sources to start your business

Whether you have a product or service in mind or are interested in finding opportunities to work from home, research the industry before starting a new business. Information on home-based business industry opportunities include everything from selling crafts online to larger ventures such as buying a home-based franchise.

I recommend: Browse online home-based business industry resources such as Bizine.com and HomeBusinessResearch.com to find out the latest industry information and suggestions for the best type of business for you. Business.gov and 2work-at-home.com give you advice on choosing the right business, making sure you have the right tax forms and making the most from your new opportunity.

Find insurance and tax information with home-based business information resources

As with any business, whenever you make money you need to report it. Check your state's tax requirements and learn whether you should pay taxes quarterly or annually. You may also require information on home-based business insurance as homeowners insurance may not cover all business equipment and materials.

I recommend: Consider the PowerHomeBiz.com state-by-state guide to starting a business. Once you start your business, learn how long to keep specific records with BankRate.com tips and find out how to settle taxes with the IRS.

Sell items online using home-based business industry research

Many people have creative talents with painting, sewing, jewelry making and other craft projects. You can turn these hobbies into profits by selling your merchandise online. Create your own website or use a ready-made e-commerce site.

I recommend: Sell your crafts, such as jewelry and artwork, online with Etsy. Cafepress is similar but allows you to design t-shirts and accessories without having to produce the physical pieces. Consider Web.com or SiteSell.com to create and use your own website to promote your business and sell your products.

Consult home-based business information resources such as books and magazines

Bookstores stock entire sections with books about business startups and home-based opportunities. Take advantage of the multitude of information from reference materials for home-based businesses and refine your entrepreneurial skills.

I recommend: Consider magazines like Entrepreneur, which focus on small and home-based businesses. Online magazines such as Home Based Business Magazine and Home Business Magazine give you tips and valuable information.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Create a home office where you can shut the door and work without interruption. Use information about the home-based business industry to create a solid environment for business.
• •  Keep accurate records for your home-based business expenses for qualifying deductions on income tax. Consult a tax attorney for IRS rulings on office in home deduction.
• •  Craigslist, an online classifieds website lets you post your merchandise listings for a hopeful sale. Sell with online auctions like uBid.com and eBay.com to find nationwide buyers.