Home Runs

Develop a marketing plan. Many businesses fail because they don't understand the amount or type of marketing that will be required, not just to get a few clients but to keep going.

Understand your own limitations and find help to fill in your gaps.

Start with sufficient financial resources to allow yourself time to succeed.

Find out about educational seminars and opportunities and take advantage of them. Local chambers of commerce and colleges offer programs for small business. They also have courses to sharpen computer and other business skills.

Make sure you know the legal requirements for your business. What city, county and state licenses are required?

Take the time to prepare yourself. If you've been laid off and need to start making money tomorrow, you may want to consider a temporary or part-time job until you're ready to start up.

Make sure your family and friends understand just because you're based in your home, it's a real job and you can't be interrupted.

Separate business expenditures from family expenditures. It can be tempting to start out using your existing checking account. But if you are ever audited, it can cause problems.

Don't forget about insurance and taxes. Many people don't realize there are additional taxes, such as self-employment taxes, that must be paid on home-owned businesses. In addition to health insurance, you may require business and liability coverage.

Compiled from interviews

by Kate Thompson.