Starting a small business from home can be fun and also a great way to make extra money.  The problem is, just what type of business do you start and where in your home do you set up?

Make a List:  The first thing you should do, is sit down, relax and with a pad of paper and pencil, make a list of all the things you like to do.  All your hobbies for example, and any skills you may have.

Once you have this list, start paring it down based on how much money you would need to invest in it, and which items on your list that you really like to do.

If you are having trouble creating this list, then get your friends and family to help identify some of your best skills.  For example:

If your friends love how you dress, and often ask you to help them shop for clothes, and you love fashions, then you can break that down into a couple types of business ideas. 

1.  Personal Shopper - This would be a great small business idea if you feel comfortable advertising yourself to potential customers as someone who could help them shop for fashions etc.

2.  Sell Fashions Online - If you have decided that you don't feel comfortable with other people (other than your friends and family) then you could still be involved with fashions, but in this case you could start up a small fashion selling business. 

The first idea, would only involve expenses for advertising, such as business cards and getting the word out.  But the second idea, would require a decent digital camera and computer setup and possibly websites.

So, you will need to decide how much you can invest in your small business idea from home. 

If you love a certain fashion, such as vintage clothes for example, you could set your business up to scour the estate sales, garage sales, flea markets and more for retro or vintage fashions and accessories that you could then sell online with sites such as Ebay or your own site.

By creating this list of your likes and then breaking them down based on a business model, you can drill your way down to starting a small business from home that works for you.

If you have decided that you will be selling items online, try and pick a specific niche so that you are not stocking all kinds of things that will over run your home.

No matter what type of business you have decided to start, you will need a small office area where you can keep a few files, your computer etc..  If you just don't have the room in your home for a separate office area or storage area, then first of all, try and refrain from using the kitchen table as this doesn't make your business feel very serious.

One great way to create a area for your home business, is to get a room divider for your Starting a Small Business From Home(74324)Credit: Amazonmain living area.  You can create one yourself or you can get them online.  These are a great way to separate home living with business, and this way, when you are done for the day, you are not staring at it.  This will create a separate space for you and your small business.

You can make a simple desk by getting 2 x 2 drawer filing cabinets, and putting a shelf across them.  This way you have some storage in the filing cabinets and the shelf gives you a place to work.

If you need to store products, then you need to create a system right from the beginning.  Get clear plastic tubs that you can label, and either stack on each other or if you can afford it, a shelving unit in a spare room or basement or garage.  You can always set up a curtain in front of your storage area.

I have seen living areas where one wall was used as shelving with bins and then a couple of room dividers placed in front to hide the bins.  The dividers had family pictures on them and it looked like it was part of the room.Starting a Small Business From Home(74325)Credit: Amazon

Starting a small business from home, takes more time in the beginning deciding what you like and what type of business you could operate based on something you would enjoy.  Remember in the beginning there may be more expenses than profit, so you need to pick something you would enjoy to help you get started.

If you have very little money and you are wanting to start this business at home with very little money, then take a good look at your list and try and brainstorm ways to make the business work with very little investment.  If you are wanting to sell anything online then you will need to invest in a good digtal camera and computer.

Try and find a good deal on these items, maybe get them for Christmas or birthdays, or use a no interest credit card.  This way you can get the equipment you need without a huge cash outlay in the beginning.

Once you have decided on your small business from home idea, you will now need to start another list of things you will need to get this off the ground.

Computer and or camera as stated above is probably one of the first investments you will need to make, as many small businesses rely on e-mails now, you will need to setup a good email address to put on your business card. 

Try and set things up to look professional.  No one needs to know you are wearing all the hats of your business!  Have a separate email address for your business.  Having something like: is not going to look professional!  So, consider something Starting A Small Business From HomeCredit: morguefilerelated to your business.

If you can afford it, employ someone to make a website for you if you need one, or get some good books on how to sell online.

So, in the beginning you will need to research your ideas first, then drill down to the perfect home business, then make your list of things you will need starting with the "must haves" down to the "would be nice".   Give yourself a budget and try to stick to it, and you will find starting a small business from home fun and profitable!