1 - Define Your Niche: You're going to need to identify a subject that you not only enjoy, but an area that you can successfully exploit to generate increasing revenue and sales. Try to think of things that you like or that you have experience in, but don't decide to build your business based on a subject just because you think it will make money. You may well be stuck with this topic for many years - you must enjoy what you're doing!
2 - Research Your Market: Is your chosen topic big enough to generate growing sales? For example, you may enjoy collecting 'pepper pots', and it's certainly a niche market, but are there enough other people actively looking to buy similar items for you to make a living and pay your bills?
3 - Competition: Having a healthy competition in a market can be a good thing as it means the topic is popular enough to build a business in. However, looking to dominate a big market is not going to work. Think of 'Goldilocks' and go for somewhere in the middle for being just right!
4 - Register Your Business With The Relevant Organisations if Required: In some countries, you will need to notify the government body that you have started working for yourself within a stated period. You may need to advise the likes of your national taxation office or government trade and industry department if you need a licence. Don't get yourself fined before you even start.
5 - Get An Office: This doesn't have to be anything special, but you will need somewhere that you can go and not be disturbed - an unused room at home is great, if not, set a time for business and use the kitchen table. If all else fails, you may have to use a 'hot desk' option in a real office and pay by the hour.
6 - Build Your Website: If you can, build it yourself, but if not you'll have to pay someone to do it for you. There are big issues with paying someone else (eg they don't know what you want), so if you do go down this route, prepare a brief showing them exactly what you want. Drupal and Wordpress are two great Content Management Systems and are both Web 2.0 compliant.
7 - Go Market Your Business: One-way backward links help the search engines determine your website relevance. Writing good articles and leaving forum posts are great ways to achieve good links into your site, and they don't cost you anything to do!
8 - Step Back & Take a Breath: You've come a long way in a short time. Now just stand back and make sure everything is working, such as your website and marketing. Is your working environment good enough? If not, change it before going any further.
9 - Outsource If You Need To: If your home business is really taking off, you may need to outsource mundane tasks to others, aloowing you to concentrate your efforts on things that generate income for you. Look at places like 'elance', or 'rentacoder'.
10 - Reinvest: You don't have to reinvest your profits, but if you really want to change your lifestyle and work from a tropical beach, reinvesting your profits in the early stages of your business growth can pay massive dividends later.
Starting a home based business takes time, money and effort. Way too many people fail because they haven't thought through how they are going to build their business. Using this simple 10 step plan can help you succeed where others have failed. Nothing is guaranteed, it's up to your own efforts, but this plan is a great place to start.
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As a successful online business owner and qualified 'Guerrilla Marketing Coach', Michael Hemmins helps small business owners develop their businesses using little or no money, working from home. His website is Home Business Ideas and you can subscribe FREE to his blog to get the latest news, reviews and information relating to online home business by clicking this link