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Labor Pains - Where to Begin
QUESTION: I want to start a custom window treatment business from my home. My educational background is in the medical field not in business or finance. Besides a good sewing machine, which I have, what other equipment should I invest in? How do I calculate prices? What sort of documentation and accounting records do I need to keep? Should I apply for credit card acceptance this early? Thank you for addressing my questions. With two young children, I am very eager to work from home! From: Maria Balboni - kmbabl@aol.com<
ANSWER: It is wonderful that you know what type of business you want to start. That is the most important first step. The start-up phase of your new business can be very confusing, but don't let yourself become overwhelmed. You will find that everything else will fall into place as you begin working on your idea. Your business will evolve, and all of your questions will be answered.
If you have a need for equipment beyond your sewing machine, that need will become apparent, and that will be the time to make an investment. There is no need to guess. To calculate your prices, you can do two things: First, add up all of your expenses and include a specific amount for your time. Then, double that figure. Then, to be sure that you are not under or over pricing, make some calls to other businesses offering custom window treatments and inquire about prices. You many want to charge less at start-up to attract new customers.
Open a business checking account and apply for a business credit card such as American Express. Pay for all business expenses using these accounts and you will have a complete record of your expenses. You won't need a fancy accounting system your first year in business. You could get a credit card merchant account right away, but it is not essential unless you are selling online or by mail order. If you decide to proceed, consider applying for an ECHOtel account that is designed for businesses with income under $1,500 per month. To learn more about ECHO, go to http://www.homeworkingmom.com/echo
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