Did you know that 70% of small businesses are owned and operated by a single person? Many people are realizing the fantastic benefits associated with becoming their own boss. But if you are considering making the move, do you know how to get started?
One way to start out is to open a business from your own home. Read on as we give our must-know guide on starting a home based business.
Choose the Right Type
Many people starting a business from home will already know the type of business they want to open. They may have a skill or passion that they are going to pursue. For some people, a home based business may be an extra form of income and they may not know what business to start.
The choice comes down to two options, product, and service-based businesses. Service-based businesses include cleaning, IT support, and jobs in which you offer to do something. Product-based services are selling an item, such as cosmetics, clothing, and other consumer goods.
Know Your Audience and Market
The first step is to think about the target audience for your product or service. This can inform later choices about how you market and brand the product. Without customers, you won’t have a business at all.
Check to see how many others are offering the same types of product or service as you. Look for areas or a niche that they may not be fulfilling. Think about what makes your product different from the others and puts you ahead of the competition.
Create a Space
Even if all you need to do your job is a laptop, you need to think about creating a home workspace. Working at the kitchen table or on the sofa will soon wear thin. You will find family and day-to-day life start to cut into your work time.
Make sure you have a designated space, such as a home office room. It must have a door so that you can close it and let the family know you are at work. Make sure it has lots of natural light.
Depending upon the state you set up in, you will have different legal requirements to set up. You will definitely need a business license and compliance with any state regulatory systems. After this, you will need to set up your tax requirements.
Finally, by any documentation, you may need. Home or commercial auto insurance for home businesses is one, as well as certifications from any associations or boards.
Work Out Costs
Finally, work out any startup costs you will need for the business. You may need to get stock or an inventory. Specialist tools and furniture may also be required, along with a budget for marketing your business.
Starting a Home Based Business
Now you know the steps to starting a home based business, you can begin to organize your new occupation. Do your research and conduct a great marketing plan. Soon you will be reaping the benefits while being your own boss.
If you enjoyed this article, then visit the rest of our blog. We have everything from finance to property management, to help your business grow in the coming year.