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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.

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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 To subscribe to the Computer Reseller Ezine send a blank email to: inetstart@aweber.com

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