If you have a budding business idea that has been brewing in your mind for years, why not take some action now? If you believe your idea has a strong market and you have research to back it up, start running a business from home.
Big names like Amazon began at home. The same was true with Apple, which was started by Jobs and Wozniak in a home garage. There is no shame in starting your business from your sofa. In fact, almost 50% of small businesses in the USA are being run from home.
Running a small business from home has many advantages as well. Here are some pros of setting up your small business at home.
- You will need a lower investment since you don’t need to rent a space for an office.
- You can achieve work-life balance easily, which is beneficial for parents or retirees.
- It can be a family business, where your spouse and even older children can work with you.
- You can sell to a wider range of audience that extends beyond your locality.
There are many types of small businesses that you can start at home. You can sell your professional services, you can set up a dropshipping store, a print-on-demand business, and even produce and sell your products based on your expertise.
Create a detailed business plan
Businesses, whether big or small, should begin with a sound business plan. If you are planning to get a business loan, a business plan will certainly come in handy. Your business plan will also serve as a guide on how to run your business. It will also let you run your projections and see whether your business idea will be successful.
Do not just create a business plan for the sake of having one. Include all the necessary details so it can serve a more helpful purpose. Research thoroughly on your target market, and the existing businesses that will be your competition. You must have a detailed list of the personas that you want to reach.
It must also include your detailed financial plans. Where will you get the capital for your business? How will you appropriate the budget?
It must also have the details on the manning and services that you need. Will you need an assistant, outsourced bookkeeping services, or a place for your inventory?
How will you operate? Will you have an online platform? How will your target audience avail of your services? All of these details must be included in your business plan. As you work through your plan, you will also be able to refine your ideas.
Not all business ideas are feasible. So if your business idea turns out to be bad even on paper, do not be afraid to start again and look for other ideas.
Set up your dedicated home office
Managing a business from home can be more efficient and fun if you have a dedicated desk in your home. A comfortable corner in your home dedicated to your work can help you be more productive. Make sure that is lighted enough. If no natural light is coming in, you will need to invest in more artificial lighting.
Invest in an ergonomic desk and a comfortable chair that will make you want to stay at your desk for a long time. You must also have the equipment and supplies that you will need to effectively manage a business.
Apply for a business license
Check the requirement in your locality on how to apply for a general business license. You will need your license for revenue tracking for taxation purposes. Clients will most likely trust your products and services when you are fully licensed.
Manage the financial aspects of your business
Running a small business from home will also mean that you need to manage the financial aspects of your business. You need to ensure that you have enough capital to run and operate your business. Aside from securing your capital, you must also study and analyze how much you should sell your products and services. Your pricing must be competitive but must give you some profit as well.
You will now be eligible for self-employment tax and its deductions. You can apply for tax deductions, if applicable for the following:
- Home Office
- Phone Expenses
- Internet Fees
- Licenses and Permits
- Third-Party Services
It will also be helpful if you establish the ownership and business type of your small business, which will be needed whenever you file your taxes.
Outsource skills and expertise
If you do not plan to hire your own personnel, you can outsource specific functions, such as administrative tasks, bookkeeping, customer support, and website development and maintenance. If you will be running an e-commerce site, it will be easier for you to hire services that will be in charge of the design, set-up, SEO, and content of your site. This will allow you to focus on your core business while experts will take care of the rest.
If you are into retail, you can also opt to outsource your inventory management. A reliable and reputable distribution partner can improve the efficiency of the movement of your products.
Starting a small business can be overwhelming and scary, yet exciting at the same time. There are many things that you will need to consider for the success of your business. Keep an organized checklist and seek the advice of professionals for a well-established home startup business.