The first and obvious step when starting your mail order business is to come up with a business name. Do not make the common mistake of creating a business name too quickly and without thought. It is an important decision that takes careful consideration. you want to select a name that you will not only like now, but in the years to come. The name should reflect a positive image for your business.

Remember that your name represents your company. Even though you may start off as a small mail order business, marketing only a few products, you must take into consideration the future. What will your business model look like in one or two years? Will it remain strictly a mail order business? These are just a few of the questions to think about when brainstorming for business names.

Try to avoid names that are "cute" or "cool". It is likely that your feelings will change over time. Keep in mind that you will be dealing with many professional companies and individuals, and your name is the first thing they associate with your company. Perception is reality, and if they perceive your name to be professional, the 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 coupon books, here are two possible names:

1: USA Couple Express It is specific to your business product, but does not allow too much room for growth.

2: Specialty Publishing Group It is generic enough to easily allow product expansion.

Make your name descriptive so that it advertises your products, or at least relates to your products or services. The second example mentioned above would be descriptive if you were creating and/or marketing any type of information product. It does not matter whether the products are marketed in printed form, software, or even on the Internet. The name "Specialty Publishing Group" still describes the business.

Other factors to take into consideration when deciding on a name are:

1. ALPHABETICAL LISTING: If you are going to be listed in directories or phone books, it is a good idea to have a name that begins closest to "A" so that you are listed at the front. For example, we started a company that would build and sell computers in our local area. We selected the name 'Affordable Custom Computers" which will not only get us listed in the beginning of the yellow pages, but totally describes and advertises our product and services!

2. EASY TO PRONOUNCE AND REMEMBER: Complicated names are harder to remember. Catchy names are easier. Find happy 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 this business most everyone wants to stay anonymous, and therefore does not want to use their 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 mail order business.

Once you decide on a name, you will want to check on its availability. It is good idea to go to the library and use their Trademark Directories publication, which will contain names that have been trademarked. You can also check with your cities license bureau for listings of existing businesses.

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 A LEGAL STRUCTURE

Once you decide on a name, your next step should be 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 corporation. Although a corporation is the most complex structure to form, it as its 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, it is best to consult with an attorney. It is very hard to generalize when it comes to corporations, as there are various state and federal issues involved. 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.

OBTAIN A BUSINESS LICENSE

As mentioned previously, before applying for a business license make sure that you have met all the guidelines for local zoning for your home based business. Licenses are generally issued through the city 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 fee you will have to pay and the license is renewed annually.

SETUP A 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 our business. You will need to show proof of your DBA filing when opening an account.

ESTABLISH AND CLARIFY YOUR PURPOSE AND GOALS

First, get things straight in your own mind. Write down the reasons for wanted 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 make 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.

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 businessperson is in a constant state of testing to focus and refine the money-making process into a well-tuned money-making machine.

***********************

To obtain your complete copy of the comprehensive "Insiders Guide" to owning a successful Home-Based Mail Order Business, visit