In times of financial crises many people resort to closing down an existing business or become victims of the downsizing or closure of some one elses business dreams.

Often the first thought is to start an home based business and why not after all usually the start up costs are far lower than the costs associated with other businesses.

But for many people the prospect of running a business from home is daunting task especially for those used to working for a major corporation where every thing they required was made available to do the job. This might include simple things like the photocopier down to hi tec equipment.

But in the home business many are forced to start up with just a lap top and if they are lucky an office or for most the business has to at least to begin with fit round the family rather than the other way round.

When equipment stopped working in your job you called maintenance and quickly it was fixed or a replacement was found but when on your own it's down to you. Losing your computer for day can be costly not just in repairs but in lost revenues.

In many ways it has never been easier to starting a home based business but there are things you can do to make the process eaiser and less stressful.

Book keeping and Accounts

Unless you keep accurate records you could end up in trouble with the IRS and other bodies. It is important you keep your finances in business as clear as possible as they will be fundemental in your success.

Software and Online services can make keeping control of your business much easier and you can even outsource much of your book keeping.

One word of advice keep paper copies and a digital backup many offices are now paperless but if you choose this option make sure you still keep all records. One great option is to buy a photocopier/scanner and keep a scanned copy of all paperwork if space is limited.

Merchant Accounts and Billing

If you are home based and want to give the impression of being a large and effecient organisation you will need to be able to accept payments by credit card either online (through your website) or using a card machine. Most merchant services providers can help you with this but be wary as charges for small transactions can mount up.

Websites and Online Marketing

Having a website can help a small business appear to be as significant as a large corporation with brick and mortar offices. Make sure you website creates confidence, a feeling of security and warmth and you will find it far easier to market your business through online and offline methods. Offline marketing can be very effective when combined with a good online presence.

When it comes to online marketing planning out how you want to market your website can save you money in the long run, since SEO (search engine optimization) and PPC (pay per click) campaigns require your website to be designed in a certain way from the start for maximum effect.

With all this technology, you should invest in outsourcing an IT programmer to help with any computer problems and customer service issues you may have. IT outsourcing is considerably less expensive than staffing someone and is known to have saved businesses thousands of dollars.

Order Fulfillment

If your business is retail-based, product storage can be impossible unless you have garage space to spare and for larger products this is totally impractical.

The best way around this is to outsource your fulfillment services. Most fulfillment companies can work with your product suppliers to ship from their warehouse location directly to your customers. Other companies may offer their own dropshipping services but remember that these will need to be paid for and costed in by you.

Remember that your business volume will dictate the most suitable method for distribution but be wary of a business model which does not have the ability to expand as you grow.

Internet, VoIP services and video conferencing

In a home based business communications are essential a VOIP phone service can help you make huge savings and depending on your market even chat conferencing may be an acceptable way of communicating with clients and suppliers.

Don't be afraid to ask as this can reduce overheads. Another great way of reducing travel costs is the use of video conferencing for day to day contacts this might be possible using services such as Skype and if you wish to hold confidential meeting there are now many webconferencing services.