You can start a home based business in a variety of ways. You may choose an online or off-line business idea. No matter the type of idea that you have, your success will depend on the type of plan that you have and your ability to implement that plan. Working at home has become more popular especially with the easy availability of the internet. An online business makes it possible to reach a larger number of people without spending a lot of money.

Have The Right Foundation

Choosing a business that is suitable for you is very vital. You can consider ideas that are related to the type of talent or skill that you have. You may also choose to sell products on or off-line. There are several products on the market but you have to be sure that those that you choose have a lot of demand. You should also look for items that do not have too much competition. If there is a lot of competition, you may easily become discouraged at the early stages of your new venture.

Consider Having A Website

Even if your home based business is not an online venture, it is still important to have a website. A website is a vital need if you are marketing on the internet. A website can be a useful tool to promote your products or services to potential customers in the local area. Before you start your website, find out what your competitors are doing. This will enable you to know if you can offer better services to your customers.

Have Reasonable Expectations

A home based business will not give you overnight riches. It will take some time and a lot of patience to build a successful business. You have to approach it as a real business and practice principles that will help you to succeed. Make sure you provide quality products and services, excellent customer service and dependable communication. These are some of the key elements that will help you to succeed.

The first few months of a new business are usually spent on putting foundational structures in place. Do not expect to make a lot of money within this period. Your business is still new and you have not yet built a reputation in the marketplace. If you are marketing online, it will take time for your website to get to the top of search engine results pages. It also takes time to attract repeat customers or to get recommendations from satisfied customers.

Consider your location

If you plan to have customers or other professionals coming into your home, you may want to think about your location. Again, whether you can host such home-based businesses depends on zoning laws. Make sure your residence is easily accessible and convenient for visitors. You also will want to maintain it in good condition, serving as a positive representation of your professionalism and credibility. Just because you operate a business from home does not necessarily mean you always must conduct activities there. When meeting clients, you may consider going to a local, quiet coffee shop or renting a meeting space.

Give yourself a schedule

Running a home-based business can provide more schedule flexibility than working in an office or for someone else. While you can choose your hours, try to maintain a consistent schedule that supports productivity. For example, you can choose the typical 9-to-5 schedule or start a bit later, such as 11 a.m. to 7 p.m. Your schedule may also vary on the type of business you run, as you may need to work particular hours to conduct tasks or interact with people. Having a work schedule can also help you maintain a balance between personal and professional activities.

Dress for work

Similar to your schedule, operating a home business can offer flexibility in how you dress for work. However, try to maintain a habit of wearing office-appropriate attire. This habit is also important if your business requires you to meet with others virtually or in person. You want to project a professional image, which may not come across while wearing your pajamas. Having a daily routine of getting dressed can also help prepare you to work with a productive mindset rather than rolling straight out of bed.

Create a designated office area

Establishing a designated office or work area in your home can help you stay productive. Working in communal areas of your home, such as the kitchen or living room, can lead to distractions or disruptions. Meanwhile, setting your office up in a private, quiet room or space can help you stay focused on your work and separate your business from your personal life. This setting can also help you appear more professional when meeting with clients or customers virtually or in person.

If you do not have a separate room, consider setting up a partition in a shared space or establishing rules for others to follow during your work hours. For example, if you work in your living room, you may prevent others from watching television during the day. These rules can help limit disruptions and create boundaries even when sharing spaces.

Ensure you have the right tools

Beyond a designated office space, you need to ensure you have the right tools and accessories to conduct your work. The more basic items include office furniture, such as a desk and chair, and technology, such as a computer, laptop, printer, phone or headset. You also likely need a reliable internet connection to conduct your daily business operations or interact with clients, customers or colleagues. You may also need to purchase office supplies, which can vary based on your business and typical tasks.

Assess your overhead costs

One of the benefits of a home-based business is lowered overhead costs. These costs represent expenses that support your daily operations, such as rent or utility payments. While you may save money on rent, you still need to consider other costs, such as insurance, office supplies and equipment, marketing expenses and any applicable wages. Understanding these costs can help you develop a budget and stay profitable. For example, you can use these insights to determine how much you can spend to set up your at-home office.

Build your team wisely

Depending on your business, you may need to hire employees to support its daily operations and activities. When determining your hiring needs, think about the tasks that would benefit from having an experienced employee. For example, if you do not have marketing or IT skills, those represent areas where you may hire people for support. Having a diversity of knowledge and experience on your team can help strengthen it because you can learn from one another and offer varying perspectives.

Because you work with these individuals regularly, you also may want to ensure that they share your values and align with your expectations. These factors can help you develop a positive workplace culture, whether in person or virtually. A positive workplace culture ensures that everyone feels welcome and happy to come to work. Sharing values and expectations can also help keep your team on track toward your business goals.

Maintain a healthy work-life balance

Operating a business from home may make you feel like you are always at work. As a result, you lose track of time and find yourself working during off-hours. Again, one of the benefits of this business type is that it enables more flexibility between your professional and personal lives. Having a balance between these two concepts can help you maintain your energy and productivity, rather than feeling burnt out.

Set boundaries to spend more time with family or personal activities and avoid overworking yourself. For example, you can turn off your computer or work phone at the end of your scheduled workday. Or you can bar yourself from entering your office space during your off-hours. Keep in mind that when running a business, you may encounter some challenges that require working extra hours, but you may not want to make it a regular habit.

Build your network

You can network with other businesses in your community or industry to gain professional guidance, support or connections. If you find opportunities to connect with other home-based businesses, you can use them as resources for helpful advice and tips. Building strong, positive relationships with members of your network can provide numerous benefits. For example, these individuals can promote your business to potential customers or connect you with people or services that help grow your business.

Develop your brand

Developing a brand can help establish your business’s identity and differentiate you from others in the market. This process may involve creating a company logo, along with a unique design that you incorporate into your promotional or marketing materials. Your brand can also represent who you are as a company, such as your mission statement and values. It should send a clear and consistent message about what you offer. Creating a credible, trustworthy brand that offers high-quality products or services can help you attract and retain customers.

Utilize marketing strategies

Another way to attract potential customers to your home-based business is to utilize marketing and advertising strategies. Your strategy may rely upon your target market because you want to reach them where they are. For example, you may connect with customers in your community by sending flyers in the mail or participating in local events. Or you may focus your marketing efforts on the social media platforms that your target market visits regularly. Again, if you do not have marketing expertise, you may consider hiring or consulting someone who does.

Continue seeking opportunities to learn

As mentioned, you may hire team members to support the business with tasks where you have less experience. However, make sure to open yourself to new learning opportunities and participate in training to continue building your skill set. Learning how to perform basic office, IT or bookkeeping duties may help you cut costs associated with hiring someone else. By pursuing professional development opportunities, you can strengthen not just your skills but also your business.

Steps to Start a Business at Home

1. Brainstorm your business idea

Your business idea is essential to the success and longevity of your business. It’s important that you approach the brainstorm process thoughtfully and consider personal factors like your strengths and lifestyle, as well as business factors like your potential markets. Here are a few questions to help guide successful business ideation.  

• Can you solve a problem? 
  Business ideas that help solve common problems have the potential to be very successful. For example, if others need help with cybersecurity protection, your business can offer services that fix those problems. As long as the problem exists, you’ll have demand for your services.
• What’s your niche?
  When it comes to starting a business in a saturated market such as home maintenance, it can be helpful to carve out a niche to specialize in. Examples of various niches in home maintenance include drought-friendly landscaping, roofing or decluttering. Basing your home business around a niche and feeling confident that you can provide outstanding quality in that space will help set you apart from competitors.

2. Evaluate if your business can work at home

According to the U.S. Small Business Administration (SBA), nearly a quarter of employers are home-based, and that number increases to approximately half of all businesses when including those with no employees. The SBA also reports that the most common businesses based at home are construction services and business services. Many entrepreneurial ideas are able to operate at home, but not all are viable. 

Read Also: What Are the Success Criteria For Entrepreneurship?

To determine if your business idea can work from home, start by evaluating whether it abides by local business ordinances. Most home-based businesses will have few zoning restrictions, but it’s good to be aware that most neighborhoods are zoned for commercial and residential purposes only. Check your local laws to make sure whatever commercial operations you choose to start aren’t banned in your area. 

3. Assess profitability 

When it comes to assessing the profitability of your business, it’s necessary to do some market research on the demand, market, economic demographics and pricing for your idea. 

• Demand is whether consumers want or need your service or product offerings. To learn about consumer demand, look into consumer spending data and trends. 
• When researching your market, you’ll want to take size and saturation into consideration. Try evaluating your market with a market or industry analysis.
  • Market size is the amount of people that are interested in your product or service.
  • Market saturation is when the market growth of your product or service stalls.
• Economic demographics, like employment and income ranges, are important to consider when developing your business. If your location generally has a lower income, it may not be the best place to offer luxury services. The Bureau of Labor Statistics is a good resource to learn about employment and earnings in your area.
• Pricing is important to determine based on what potential customers are willing to pay. One option to decide on pricing is to compare what people are willing to pay for alternative products or services.

4. Make a business plan  

After concluding that your business will be profitable, your next step is to plan it all out. A business plan will help you think through each aspect of your business and provide you with a guideline for structuring, starting and maintaining your business. 

Most businesses use a traditional format for their plan because it’s commonly requested by lenders. Traditional business plans are comprehensive in their detail and often include the following sections:

1. Executive summary
2. Company description
3. Market analysis
4. Organization or management structure
5. Product or service line
6. Marketing and sales
7. Funding request
8. Financial projections
9. Appendix 

5. Determine your business structure 

Another step you’ll have to complete when starting your home business is figuring out what kind of structure is best for you. This step is very important because your location may put restrictions on your structure. Additionally, unexpected legal or tax complications can arise if you don’t choose wisely. Here’s an overview of the common types of business structures:

• Sole proprietorship: A sole proprietorship is the default business structure for anyone who operates a business but isn’t registered. They consist of one person and allow you complete ownership and control. It’s important to be aware that as a sole proprietor, there’s no separation between your personal and business assets or liabilities. 
• Partnership: When you go into business with two or more people, you may want to form a partnership. There are two types: limited partnerships (LPs) and limited liability partnerships (LLPs). LPs consist of one partner with unlimited control while others have limited control, and LLPs mean that all partners have limited control.   
• Limited liability company (LLC): LLCs combine advantages of a partnership and corporation. With an LLC, your personal assets are protected from any business liabilities and operating costs are less than they would be with a corporation.
• Corporations: Many types of corporations exist, but the most general type is a C corp. C corps offer better protection of your personal assets, as they can be held legally liable. They can also make a profit, but are taxed more and require more detailed business records.
• Cooperatives: Any organization or business whose owners also use the services is considered a cooperative. Any earnings are shared among cooperative members and a board is used to control the business. 

6. Pick a good name for your business

Once your business is planned out and you’ve decided on a structure, it’s time to decide on a name. The name of your business can be make or break, so take your time and think of one that aligns with your brand. It’s also helpful if the name makes sense for your product or service and is user-friendly.

7. Register your business with the state 

Now that you’ve decided on a business name and structure, you can register your business. Not every business needs to be registered, but registration can offer you certain personal liability protections and other benefits. Below is a general guide for which type of registration your business may need, but it’s best to consult your local government websites for requirements based on your location.

• File for federal registration if you:
  • Want your nonprofit corporation to be tax exempt
  • Desire trademark protection for your brand or business
  • Are creating an S corporation 
• File for state registration if you are a:
  • Limited liability company
  • Corporation
  • Partnership
  • Nonprofit corporation
• File for local registration if you:
  • Need a permit or license from your city or county
  • Are required to register a trade name  

8. Acquire a tax ID number and business license 

After registering your business, it’s wise to apply for a free federal tax ID known as an Employer Identification Number (EIN). Your EIN will allow you to obtain a business license and is also necessary to pay federal taxes or employ workers besides yourself. To apply for your EIN, visit the IRS website.

Depending on what activities your business is involved with, you’ll also need a business license or a permit to operate. Examples of business activities that need to complete this step include serving alcoholic beverages, selling firearms or transportation and logistics. Look at the SBA site for a full list of federally regulated activities and their issuing agencies for more information.

9. Create separate business accounts 

Your federal EIN also allows you to open a business account at a bank. Business bank accounts offer many advantages for entrepreneurs. These include allowing customers to pay your business with a check or credit card, the opportunity to make purchases with credit, and provides personal liability protection by separating your business and personal accounts. Bring the following if you plan to create a business account:

• Employer Identification Number (EIN) 
• Social Security number (for sole proprietors)
• Documents pertaining to your business’s formation 
• Ownership agreements
• Business license

10. Obtain funding

There are many ways to fund your business, and it’s important to choose a financial route that will help you succeed. Start by calculating your startup costs and then evaluate which type of financing will bring your business to life. Three common types of funding are loans, self-funding or venture capital. Learn more about each below. 

• Loans: Small business loans are an option if you don’t have enough money to get started on your own, and they allow you to maintain control over your business. Loans are offered by financial institutions like credit unions or banks, and a detailed business plan will give you the best chance of securing a loan with good terms. 
• Self-funding: If you plan to use your own money to start your home-based business then your business is self-funded. Many people don’t have enough cash on hand to start a business, so you may want to consider getting help from friends and family.
• Venture capital: Another way to fund your home business is through investors. Specifically, venture capitalists offer financing for your business, and in exchange, they have some control over your business as well as a share of the ownership.

11. Insure your home-based business 

Although your home business may enjoy certain protections depending on your chosen company structure, insurance can help provide more extensive coverage for all of your assets. If you have home insurance, your policy will generally cover a certain monetary amount of business equipment, depending on whether it’s located on or off business premises. On the other hand, your home insurance policy won’t cover activities relating to your business, such as accidents or injuries. 

To fully protect yourself in case of emergencies, it’s good to look into home-based business insurance. This type of insurance is added onto your homeowners insurance to cover your business equipment, home office and any liabilities stemming from activities related to your home business. 

12. Designate space for an office

Now that you’ve prepared for your business logistically and financially, it’s important to set yourself up for success at home. A designated office space is essential for any home-based business. Not only will it provide you with a productive workspace, but it can also qualify for a tax deduction. 

Whether you choose to convert your garage into a workspace or opt for the ultimate smart home office, it’s important to consider the essentials that will help you run a successful business. Consider some of the following when setting up your home office:

• Secure modem or router
• Surge protector
• Scanner, printer or fax machine
• Ergonomic desk and chair
• Natural lighting 

13. Start a tax account and know your deductions

As your own boss, it’s necessary for you to be aware of how your business will be taxed. Taxes will correspond to your business structure, but for most home-based businesses, you’ll be paying federal and state self-employment taxes every quarter. Additionally, if you have employees or collect sales tax, you’ll need tax accounts for those separate purposes. 

With established tax accounts, you’ll be prepared to file taxes correctly. Remember to do research on what deductions you may qualify for, like the home office deduction mentioned in the previous section. These deductions can help you save money in the long run that you can put back into your business. 

When it comes to starting a home-based business, it’s important that you plan for your success. Follow the steps in this post to begin brainstorming your business idea and make sure you do everything necessary to structure, fund and maintain your home business. 

Remember that home businesses have some coverage through your home insurance policy, but it’s best to look into additional coverage to ensure you’re protected. When all aspects of your business are covered, you can focus on growing your business and reaching your entrepreneurial goals. 

Promotional Tips For Your Home Based Business

Your home based business can be promoted in different ways. You can start by letting your friends know what you are doing. Print fliers and distribute them in places that prospective customers go to frequently. Place classified ads in local newspapers and magazines. Reach out to customers online by taking advantage of social media and forums. You will also have to work on search engine optimization strategies that will make your website to become more known on the internet.