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to Start Your Own Computer Reseller Business From Your Home
How
to Start Your Own Computer Reseller Business From Your Home Office
by Jorge Fernandez
http://www.inetstart.com
The
first exciting step when starting your business is to create a
professional business name
. Do not make the common mistake of
creating a business name too quickly and without thought. This
is an important decision that takes careful consideration. You'll
want to select a name that should reflect the main product line
or service of your new business.
Start a Small Business as a Computer Reseller and Create a Business Model / Business Plan
Even
though you may be starting off as a small internet mail order
business, marketing only a few product lines or services, you'll
need to take into consideration the future. What will your business
model look like in one year from now? Will
it remain strictly an Internet home business? These are just a
few questions to think about when you start brainstorming for
business names.
Try
to avoid names that are "cute" or "cool."
It is likely that your feelings will change and mature over
time. Keep in mind that you will be dealing with many professional
businesses, companies and individuals, and your name is the
first thing they associate with your company.
Your Small Business Needs to Have a Great Business Name
Perception
is reality, and if they perceive your name to be professional,
then you are creating a strong first impression! A
name can reflect on your type of business, or it can be generic
in nature. For example, if you were going to be marketing custom
built PC's, here are two possible names:
1: Intelli Custom Computer
Solutions: It is specific to your business product, but does not
allow too much room for growth.
2:
Intelli Solution Providers: It is generic enough to easily allow
product line expansion.
Make
your name descriptive so that it advertises your computer products,
or at least relates to your products or services. The second example
mentioned above would be descriptive if you were providing computer
hardware and software products or providing integrations, networking
solutions or any type of services. It
does not matter whether the products you market are hardware,
software, security, wireless, networking or integration services.
The name "Intelli Solution Providers" still describes
the business.
For
your convenience, we have provided a partial computer hardware
and software product list in order to help you choose your niche.
Click
on the link below: http://www.inetstart.com/the_products.htm
Other
important factors to take into consideration when deciding on
a name are:
1.
ALPHABETICAL LISTING:
If you are going to be listed in phone
books or directories, it is a good idea to have a name that begins
closest to "A" so that you are listed at the front.
For
example, if you started a company that would build and sell computers
in your local area then you may consider selecting a name such
as "Affordable Custom Computers", which will not only
get you listed in the beginning of the yellow pages, but describes
and advertises your product and services as well!
2.
EASY TO PRONOUNCE AND REMEMBER:
Complicated names are harder
to remember. Catchy names are easier. Find the perfect medium.
3.
USING YOUR OWN NAME:
There are obvious benefits and drawbacks
to this. If you use your full legal name, you may not have to
file a DBA (doing business as). It seems that in business, almost
everyone wants to stay anonymous and therefore do not want to
use their real name.
Often
a business that uses a personal name is not taken as serious (or
as professional) as one that uses a DBA. At least in the case
of home based Internet business.
Once
you have decided on a name, you will want to check on it's availability.
You can do this very quickly by simply dialing 411 and asking
the operator for the phone number for the Department Of Corporations
for your state.
Then
contact them and ask them to connect you to the name checking
department. They will either transfer you or give you the phone
number for that department.
If
you plan to conduct business under a fictitious name, you will
want to contact your local Secretary of States office to file
a fictitious name registration (DBA). A fictitious name is any
name that does not contain your full legal name. Some states even
require you to register if you are using your legal name.
SELECTING
YOUR SMALL BUSINESS' LEGAL STRUCTURE
Once you decide on a name, your next
step should be selecting the type of legal structure for your
business. There are basically three types of business structures.
1. Sole Proprietorship 2. Corporation 3. Partnership
A
sole proprietorship is owned by one person and is the easiest
and least expensive structure to form. Many companies use this
structure when starting out, or until they find the need to change.
A
disadvantage of a sole proprietorship is that you are solely responsible
and liable. If this is a concern, then look into forming a corporation.
Although a corporation may be the most complex structure to form,
it has it's benefits since it is an entity itself separate from
the individuals that own it. A Corporation has its advantages
and disadvantages, and because of the complexity and legal issues
involved, you may want to consult with an attorney or have a filing
company do it for you. This is not to say that you cannot form
your own corporation yourself. Not so.
The
corporation forms are self explanatory and when there are no major
assets involved as is in the case with a home business then it
doesn't have to become complicated at all. Just fill in the blanks
and mail in the forms.
Partnerships
are as they sound, a legal business relationship in which two
or more people share ownership. This structure is used often when
additional capital is required to start a business.
Be
careful when selecting a partner to go into business with. It
is important that you get along and work well together.
Each
partner should have some experience or skill that will enhance
that business and make it stronger. It is a good idea to create
a partnership agreement. Many friendships have ended over business
disputes.
OBTAINING
YOUR BUSINESS LICENSE Before applying for a business license
make sure that you have met all of the guidelines for local zoning
for your home based business. Licenses are generally issued through
the city and/or county clerks office where you will need to fill
out and submit an application.
The
most common information requested is business name, type of business
(structure), type of business, location and number of employees.
There is a small fee you will have to pay and the license is renewed
annually.
OBTAINING
YOUR RESELLERS LICENSE
Now
you'll head on over to your local State Revenue Department to
apply for your tax license, which is your resellers license.
This
tax license, (resellers license), gives you the privilege to buy
at wholesale and sell at retail, not only computer products but
any other type of products as well.
You
will also have the responsibility of collecting sales tax from
consumers for sales made within your home state. You will not
be collecting sales tax for any other states other than your own.
You
will be setting these tax dollars aside. Then your state tax office
will mail you a collection report notice quarterly. Simply write
them a check for the total amount of sales tax which you have
collected from all sales made within your home state and send
it in.
With
your resellers license in hand, you can now contact the computer
product distributors and open an account with them.
Now
you could also pick which product line(s) to would like to specialize
in and sell on your website and then build your e-store accordingly.(Inet
Start provides a list of the top 25 wholesale computer product
distributors in the U.S. and Canada).
If
you plan on conducting business out of New Hampshire, Oregon,
Alaska, Delaware or Montana, then you'll be glad to know that
these states do not issue tax licenses. Your business license
will be sufficient to obtain an account with the distributors.
SETTING
UP YOUR SMALL BUSINESS' BANK ACCOUNT
It is very important that you
keep your personal and business finances separate. Using a personal
account for business can create record keeping and tax headaches.
Not only that, but having a separate business account certainly
lends credibility to your business, especially when your dealing
with your suppliers.
Do
some checking around before settling on a bank to use. Though
most banks offer similar services for standard accounts, it is
not true for business accounts.
Shop
around and look for the best deal suited for your business. You
will need to show proof of your DBA filing when opening your business
bank account.
ESTABLISH
AND CLARIFY YOUR BUSINESS' PURPOSE AND GOALS
First,
get things straight in your own mind. Write down the reasons for
wanting to be in business for yourself. Remind yourself that there
are risks involved and that problems can arise.
At
the same time, resolve to meet any problem head-on. In fact, do
not consider them problems, but positive challenges that when
solved, will leave you stronger and in a better position than
before.
Next,
prepare a budget. Estimate your start-up costs. A budget is a
simple way to track your company's income and expenditures.
It
gives you a clear view of how much money you earn in a certain
period of time compared to your expenses. The key is in knowing
- and not working blind. For every dollar that you spend, create
a direct link to money that is returned from that expenditure.
Fortunately
for you, starting your own computer reseller business from home
will require hardly any start-up cost other than the cost of forming
your business structure, obtaining your business licenses, web
hosting fees, low merchant account fees which are minimal.
Although
starting your own computer reseller business may seem complicated
at first, but in reality, it really isn't. Just remember to take
it one step at a time.
Furthermore,
you can set up your company structure and obtain the required
licensing within two weeks or less.
Review
your business plan every two to three months to make sure you
are on track. Changes and alterations in the way you do business
are always needed. Even when things are going well, there may
be ways to do even better.
A
successful computer reseller is in a constant state of testing
to focus and refine the money-making process into a well-tuned
money-making computer reseller business.
=======================
Jorge Fernandez may be contacted at
http://www.inetstart.com webmaster@inetstart.com.
Click here to view more of their articles.
Inet Start helps ordinary people earn extraordinary incomes by
teaching them how to start, build, promote and run a profitable
computer reseller business from home. For more information visit
http://www.inetstart.com
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