There are eight proven steps to starting and succeeding with a cottage company you’ve selected. Here they are:

Step 1: Know your business. Whatever business you select, you must know more about it than do the people you serve. If the business is in a field that is new to you, learn as much as you can. For example, as an auto detailer you must learn about car paints, waxes, finishes, detailing equipment, as well as develop skills that make auto detailing efficient. How can you know your business? Work for or study your competitors. Buy their services and read their ads. Improve on what they do. Ask a librarian for information on trade associations and magazines that serve those in your selected field. Read and learn. The more you know, the more your cottage company will profit.

Step 2: Know your customers. Businesses succeed when they find a need and fill it. That means you must know your customers and what they want. Maybe you’ve been a customer for this service yourself. What did you expect from it? How would you improve it? If you’ve not used the service, do you know someone who has? If so, what did they expect? Find out who will buy your service, why, how, when, for how much and other facts. The more you know about your customers, the more you will sell.

Step 3: Know the law. Business laws promote fair trade and public health. Contact your city and state/provincial government to learn what laws your cottage company is required to follow. Some cities don’t allow home businesses, especially if customers come to your home. Most cities require business licenses and other filings. You’ll probably need a health license if you prepare or sell food. You’ll also have to pay income taxes on the profits of your business. In the U.S., start your search by checking the phone book’s white pages under “Small Business Development Center.” This resource can help you learn the laws for your location and cottage company.

Step 4: Know your assets. You may have more assets to start your cottage company than you realize. Besides your skills, talents, knowledge, experience and some savings, you may have another valuable asset: time. Make a list of these assets, including time available to you. When I started my first home-based writing business many years ago, I wrote each morning before going to work at my regular job. I also wrote during my lunch hour.