The main difference in setting up a home based business and a physical business is the work space. In the former you operate out of your home and in the later you operate out of an office. To underestimate the power of any business whether from home or otherwise is a mistake. There are many home based internet ventures whose profits have sky rocketed!Setting up a home based business can be quite challenging because you need to clearly understand the transition required in terms of moving from the conventional business world to a home office environment.The internet is filled to overflowing with resources and tools that you can use to make your home based business a success. However, this success will depend on your personal level of dedication and commitment. You will find below some useful tips to guide you in establishing your business.Goal setting: is of supreme importance. Without a proper road map of where you are going and what you plan to do, you will be lost. In fact it is not an exaggeration to say that planning and goal setting are key to a successful home based business.Before you start setting up your business make a plan which includes all of the resources and tools you will need. What kind of investment are you looking ti, things like upgrading your computer, getting some office equipment; setting up a dedicated work space should all be part of your plan.The internet has a wide variety of resources and tools that can aid you in getting started. You will need to do a lot of research to find the tools that will be most beneficial to your business needs.Get noticed: once you set up your home based business you will need to concentrate on advertising your presence. Just setting up a business and sitting pretty will not bring in the dollars! You can use a number of mediums to advertise online from article marketing to link backs, banner ads and more. Join forums, post website ads and write about your products. Whatever method of advertising you choose, make sure your focus is on driving traffic to your site.Search engine optimization is a must for any online business and you need to become knowledgeable about this area. When you optimize your search engine rankings you are increasing the number of visitors to your site. More visitors equal more potential customers and sales.Customer base: you cannot operate a successful home based business with a customer base. To develop a customer base you need to generate sales leads which you can convert to sales. Set up a blog and put useful information about your product or service on it. Customers use to the internet to either find a product/ service or to get information. When you address the customers’ problems and provide solutions through your articles, you are attracting them to your site and repeat visitors have the potential to become paying customers.Click on the link below to learn more about Home Based Businesses.