Quit your day job only after you have been successful at your business for a while and feel confident that it will be viable. Many people work an outside job and only use their work-at-home business as a part-time job. If you do decide to quit your job, it would be best to have a sizable emergency fund to carry you through any down times you may have.
Choose what kind of work-at-home business you would like to start. Look at the things you do well and the hobbies you enjoy to start a home-based business you would enjoy. An artist may offer to do portraits from his home while an accountant can often work from home just as easily as from an office.
Decide how much time, effort and money you are willing and able to spend to start a work-at-home business. If you can only give a few hours a week and have little to no money for your business, you will have to consider carefully what kind of business to start. While many businesses can be started with very little cash upfront, almost all require a large investment of time and effort to be successful.
Write a business plan. A business plan will help you organize your business and does not have to be formal. Use your business plan to set both financial and personal goals for your business, and explain how you plan to reach those goals. This may even show you areas where you are unclear as to how you should run your business. Having a formal business plan is necessary if you will be going to a bank for a start-up loan.
Call your local government business license office. This office will help you fill out any forms needed and can direct you to the proper legal and financial sources to run your business. Following state and federal business laws and knowing what taxes to pay are necessary when running a work-at-home business.
Advertise your business and build a portfolio of your work. If you are online the business you conduct may advertise for you, such as an online auction site, or you may have to do the legwork yourself. Send emails describing your business and the services you offer to everyone you know and ask them to forward the email. Put up or hand out flyers where possible. Use free online classifieds, Web sites and articles to promote your business. You could even contact your local newspaper and ask if they would put out a press release.