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Do I need a lot of start-up capital?

In most cases, the answer is no. Most of us start our businesses for very little. In fact, not having much money to start with is a good reason to start a home based business. You'll probably need:

• $100 or so for your state and local license. You MUST get your state license. There are severe tax penalties and problems if you don't, and you'll need a license if you are going to be buying goods sales tax-free for resale. It also serves as proof that you are in business, for tax and other purposes. The local license? If your zoning allows you to do your proposed home business, than you might as well get your local license. We are struggling all across the country against stupid zoning rules, so if yours are hostile, it must be your decision whether to ignore it. In any case, work politically, on your own or through the local home business association, to change it!
• $100 or so for your "identity material", such as business cards, letterhead, and the like.
• $100 or more for marketing each month. Your first priority during your first year is to sell! Nothing else matters. The more time, effort, skill, and yes, even money you can put into this the better chance you have.
• $100 or so for basic office needs, such as receipt book, stapler, pens, etc.
• $100 or so for your business reference library, including subscriptions to trade magazines.
• $100 or so for business association membership, including joining OHBBA and local business groups. Many businesss can benefit greatly from also joining the Chamber of Commerce.
• ?????? for a computer and software. While some businesses absolutely require one, all businesses can be more productive and profitable with one. If your computer is only a support for your business, you don't need a top-of-the-line one and great bargains can be found. If you are into desktop publishing or other computer heavy businesses, then you'll want to splurge.

Don't got the scratch? Neither did a lot of us. Most small businesses today are started on a credit card and a prayer. If you are going to go into debt to start your business, be doubly careful not to spend too much. Still, going into debt for business is much better than doing it for a new VCR or any other consumer reason.

Avoid having to approach the banks for a business loan. In most cases it will only be a demoralizing disappointment. Worse, you might get the loan and start your business so heavily in debt that you won't be free for years. Or never. Most of us rely on personal credit, borrowing a small amount on a personal loan, or simply working part-time at something else and funding as we go. Realize that it will be 6 months or more before you actually start making a profit, and perhaps double that before you can make enough to live on with any comfort, so you'll need either savings, another income source, or credit to survive on till then.