Research your product or service. Consider its market value as well as your personal interest--you'll be spending a lot of time and energy dealing with it to make your business work.
Start with a plan--the most important aspect of any venture involving future finances. With a well-researched, documented and executed plan, you'll be much more likely to succeed with your home-based business.
Find sufficient funding, perhaps the most difficult step in starting a home-based business. Do not start on a shoestring budget. Instead, secure monies for necessary inventory, equipment and advertising; to cover the operating costs for the first few months; and to provide yourself with ample salary.
Get started. Once you have a product or service, a plan and funding, begin making calls, sending letters, chatting up friends and family and making others aware that you are in business and ready to get started.
Market your business like mad. Hundreds of home-based businesses fail each day simply because nobody ever heard of them. Marketing is a crucial expenditure for new and established companies alike. Invest serious time, effort, energy and capital into marketing your new home-based business.