Operating a home based business

As an independent distributor for a network marketing company, you are in business for yourself. You are responsible for obtaining the appropriate licenses, keeping records, and paying taxes. Most networkers treat their business as a hobby. Those who are successful treat it as a big business. The choice is yours. If you are one of those who would like to build a solid business, keep reading.

Your first step should be to check with your local government to see what licenses are necessary to operate a business. Secure those licenses, so that you will be a legal business.

Next you should arrange for a separate phone line (or a voice mail number) for your business. This is the number you will put on business cards, letterhead, brochures, etc. Check with your network marketing company to see if they offer business cards, letterhead, and envelopes. If so, order them. If not get prices from some local printers and order a small quantity (250 to 500) of each.

Go to your bank and set up a business account. You may need your business license, so take it with you. By establishing a separate checking account, you will be able to distinguish your business expenses from personal expenses when it comes time to pay the IRS. Since home based businesses are one of the few tax shelters left for the middle class, I would also recommend that you consult with an accountant.

When setting up your office, select a place where you can have a desk, file cabinet, phone, and can make calls without being disturbed by your family (if you have one). It is best to set up an office in a separate room with a door that will close. At very least you will need a desk, chair, and file cabinet. You may also want a computer for typing letters, maintaining a database of your network and prospects, designing marketing materials, and for bookkeeping. Since fax machines have become so prevalent in our society, you may want to purchase one for your business. You can use it to fax information to prospects, orders to your company, and to receive fax-on-demand documents.

If you adopt a business mindset (rather than a hobby), you will increase your odds of success in network marketing. Just because it only cost $50 (or whatever the fee is for your company) to get started, doesn't mean that it isn't a big business. The potential in most network marketing opportunities is greater than with any franchise.

Rod Nichols has been involved in network marketing as a successful distributor, consultant, trainer and author since 1979. He has earned a full time income with 3 different companies. Rod is the author of Would You Like to Dig In My Goldmine?, which is an 8-page recruiting booklet and his recently released book, Successful Network Marketing for the 21st Century (Oasis Press).