There are many things one has to do when starting a home based business. If it's your first time starting a home business, there can be an awful lot to learn. It's quite easy to get overwhelmed by all of the little details that are involved in running a small business.

Here are 12 essential tools and bits of advice that a home-business owner will need in order to keep your business legal, efficient, and ultimately in the black.

1. A Financial Advisor - Many startups learn that they need a financial advisor the hard way. Uncle Sam can (and will) ask for lots of money. Financial advisors keep you in check with that you owe, and more importantly what you will owe. If anything having a financial advisor or accountant do your taxes is a great idea. The government keeps a much closer tab on businesses than they do individuals. A good financial advisor will help you stay off of the "IRS radar". Once you're on the radar, it's very hard to get off.

2. Finance Software - Instead of relying on a paper trail of receipts and other expenses, buy software that takes care of it. Unfortunately, owning a business means you have to keep meticulous records. Finance software can help immensely with that. A great finance software package is Quickbooks. You'll thank your lucky stars that software is helping you keep tabs on everything when tax season rolls around.

3. Start keeping copious financial notes - In case you haven't noticed, the financial side of a home-business is extremely important. Keep receipts, take notes, and always keep tabs on where you're at financially. This will save a lot of headache (and heartache) later on.

4. Keep your ear to the ground (for outside freelance work) - It's a great idea to keep looking for outside work in order to supplement your income in the beginning. It's not uncommon for small-business owners to do some outside consulting work to help pay for bills, especially when the business is just starting.

5. Play by the rules - Occasionally it's tempting to "overlook" small rules and tax laws. If you get into the habit of being careless with rules and regulations, it will become quite easy to slip deeper into the habit. Eventually you'll find your business hit with legal and financial burdens because you gave in to the temptation to ignore some rules when you thought "nobody was watching".

6. Don't skimp on a good chair - In terms of office equipment, your chair is the most important part of your office setup. Although desks are typically much more expensive, they're not as important as a comfortable chair. There are plenty of great ergonomic desk chairs that won't break the bank but still ensure that your body is comfortable after a long day of work.

7. Designate a quiet room - Make sure that you've designated a room to work in for those times that you'll need absolute concentration. Home-based business owners don't often realize how loud the rest of the house can be, especially if you have a family or roommates.

8. Find a Lawyer (optional) - You never know when your small business is going to need legal help. Sometimes it's a great idea to have a lawyer for advice, depending on your type of business. You can never be too sure in this sue-happy world we live in.

9. Backup Drives - I can't stress enough how important it is to back up your computer hard drives on a daily basis. If you use a Mac computer, you can use the built in Time Machine. If you're looking for an automatic solution that works in the background, try Mozy. It's $5 a month, which is a small price to pay for peace of mind that your business' data is secure.

10. Take Breaks! - Breaks are an essential part of working. As home workers we tend to forget to take these crucial breaks because we're already in a comfortable environment. Taking a 10-minute break every hour keeps you effective and focused, and also provides stamina to keep you going all day long. It also keeps you healthy, as sitting all day is very unhealthy. Take a walk around the block, do some quick gardening or housework to break the inactive sitting.

11. Use Echoform to send contracts - If you send a lot of documents that need signing through your business, Echoform takes care of sending and storing your contracts digitally. For a nominal monthly fee, you can upload, sign and send all of your documents through email. This takes care of having to wait on the other party to download, print, sign and fax the signed document back. Echoform only requires that the other party have Adobe Acrobat to sign the document. Instead of taking days to send and receive signed documents, the process only takes minutes. Echoform also stores the documents through the Echoform website, allowing you to quickly retrieve any document. This is an indispensable for any home business owner.

12. Make a business plan - You have to have goals for your business. Putting something down in writing gives you something to focus on and obtain. Even if you don't meet your goals, you will have been striving towards something. Goals for your business keep you focused and motivated.

Having a home business is challenging and takes a lot of work. By using these tools you'll avoid many of some of the common mistakes that can hurt a home business. The businesses