What do Apple Computer, Hershey's, Mary Kay Cosmetics, and the Ford Motor Company have in common? These well-known corporations all started out as home-based businesses. In fact, more than half of all U.S. businesses are based out of an owner's home.

Starting a home-based business has many rewards as well as challenges. This guide provides resources that will help you learn more about working out of your house, starting a home-based business and managing your business within the law.

Before You Begin

• Are you ready to start a business? In less than five minutes, the Small Business Start Up Assessment Tool will help you understand your readiness for starting a small business. Your responses will be scored automatically and an assessment profile will be provided after you click the Submit button. This is an automated self-assessment tool. SBA is not collecting information, tabulating or utilizing individual visitors’ results.

• Can you live and work in the same area? Find the answer by asking yourself the following questions: Where in the home will the business be located? What adjustments to living arrangements will be required? What will be the cost of changes? How will your family react? What will the neighbors think?

• Home-Based Business....Is it For Me? Is working from home right for you? Learn about several factors you should consider when starting a home-based business.

• Starting a Business in Your Home: Weighing the Pros and Cons. Have you thought about the characteristics and challenges that are most commonly involved in launching home-based businesses? View the pros and cons before you begin a home-based business.

Start a Home-Based Business

If you have decided you are ready to start a home-based business, then you might already have an idea and/or the products you want to market. If not, think about your background, what you are good at, and what experience you have. This exploration can get you on your way to coming up with a sound idea. For additional guidance on how to start your business, use the resources listed below.

• Check out the first steps for starting any small business

• Obtain a checklist of things to do at How to Set Up a Home-Based Business

• Get planning ideas by reading an article that provides a comprehensive approach to developing a business plan for a home-based business

• Learn how your local government's zoning ordinances may affect your business. Not knowing the potential legal and community problems associated with having a business at home, and the rules, can have devastating consequences.

Buying a Work-at-Home Franchise

Home based franchises are becoming more common, but buyer beware! Some "work at home" franchise opportunities are schemes to get your money.

Visit the Consumer Guide to Buying a Franchise for more information about evaluating and buying into franchises and related work-at-home business opportunities.