Normally, unexpected things can happen anytime. Starting a small business in your spare time is a smart choice.
There are a lot of businesses you can start on the side. The different innovations around us has given us more opportunities to make money even in the comforts of our home.
If you’re one of those who are thrilled to explore entrepreneurship, you might start thinking lots of things to prepare. Some of the things you will need to think about is what business to pursue, what is the budget, the target market, among other things.
Here is a guide that can help you with how to start a small business at home.
Table of Contents
What is a Home Business?
Entrepreneur defines a home business as a venture wherein the main office is located on the owner’s home. Regardless of the type of product or services offered, the location of most businesses can be done right at the doorsteps of the home.
People who start a small business at home do this for a variety of reasons. Some are people are forced to stop working because of retirement, yet, they are still capable of working.
Some decide to voluntarily leave their jobs because of their desire to be their own bosses of their own ventures. While some, especially mothers, are finding ways to sustain their needs while having the capability and presence to take care of their children.
These are some of the faces of individuals that contribute to the demands of the home business worldwide.
How to Execute the Small Business at Home Successfully
Once you have done the set-up of the small home-based business, the following are some pointers to help you execute the business successfully:
Be sure to have separate contact details for the business
There must be a separate line for any business-related concerns and transactions. It will help you easily determine your personal transactions and the business ones. Also, this will lessen the risk that other family members can access the line for whatever purpose they have.
Always professionally answer the phone.
There are instances that we got carried away by acting and speaking too casually when we’re at home. This act isn’t recommended in a home-based business. Also, avoid using voice mail all the time. Clients still and always prefer to talk to a live human being, and not to a voice mail.
Be sure that your business address still looks professional.
Just because your business is located in the comforts of your home does mean you can neglect to be careful about informing about the business address to the clients. If your street address sounds informal, consider excluding it, if possible.
What Kind of Business Should I Start?
You need to decide what is important for you. Do you want something that you can do a little bit part time? If that’s the case, look at just doing short gigs.
Do you want a short gig?
There isn’t fast cash when you are building up a business. If you just want to do some freelance work, try looking on Upwork, Freelancer, and other similar websites.
Do you want a business that will take time and grow into a real business?
It’s a serious questions. It will take some time putting together the products and services. You will have to think about pricing, sales, and marketing.
Read: 200 Different Niches You Can Build a Business Around
The Different Business Models for Home Businesses
Publishing
Publishing is one of the best business models for home businesses. You can easily record videos, write articles, or record audio.
Essentially, if you are able to create quality content, people will start following you. You can diversify your income simply from ad revenue and later selling products and services.
If you start with publishing, you will have free traffic.
If you don’t start with publishing, you will need to pay for traffic. You can manually search people up on social media, but it’s still your time.
Look into YouTube for videos. WordPress or Medium for writing articles. Look at podcasts, if you want to record audio.
Read: Blogging as a Side Hustle
Physical Products
Do you want to sell physical products? You will need find a way to sell your products. You can look at creating your own e-commerce store, finding a distribution channel, or looking at established brands like Amazon or EBay to help you sell your product.
Digital Products
Do you want to sell digital products?
Digital products are a great way to make money. Essentially, you are able to take the time or money to build out of these products. Then, you can sell them over and over again.
Types of digital products:
- Ebooks
- Online Courses
- Software
It’s important to be able to market these products. Unless you already have some kind of group, look at publishing.
Read: How to Develop An Online Course
Services
Services can be a great business model. It you have some kind of following, you can offer services. Generally, try to focus on something that they will need to keep returning to.
This can be copy writing, advertising services, bookkeeping, and more. Focus on a niche, and you can create a viable business.
The Benefits of Making Your Home Business an Online Business
Access to the Internet
The internet has changed the world. It’s continuously growing. You can find information and integrate your business with other businesses. The access to the internet changed everything.
Read: Digital Marketing: What are the Impacts in Artificial Intelligence
Applications and Software
The more sophisticated programs offer more applications both for desktop and laptops like for financial management and database management. You can use these applications to make your business run efficiently.
Other programs have the capable of executing more tasks like scheduling appointments, transferring data, and even research.
Communication Tools and Platforms with Established Networks
Communication devices like cellular phones and email provide better ways to contact and reach potential customers.
There are options to send automated mass emails to people. You can use electronic phones to call people more rapidly or protect your personal phone number.
Read: How to Send Mass Emails
Furthermore, social media platforms provided an additional avenue to strengthen your marketing strategies.
Connections to Outsource work
The internet has given home businesses a way to manage inventory and potentially house and ship physical products at another location.
It lessens the need for inventory and quality control management, which makes it more adaptable to various types of environment.
Create Your Business Name
It’s not the most important thing in the beginning. It’s more important to have a strategy and concept.
If you know your niche product and service, you can create a business name.
Make sure that it’s not already taken or trademarked. You don’t want to build up your brand and find out the name was already taken.
Look at creating a DBA at your local county or an LLC. These measures are legal protections to separate your assets. Technically, you need to register your business name to operate your business.
Read: Getting an LLC with Rocket Lawyer
Some Advantages of Starting a Business at Home
Let’s dig in to some of the perks that await those who will start the business at home:
1. You do not have to travel or commute to work.
This has been one of the obvious benefits when someone owns a home-based business. You do not have to face the stresses of being commuter-the traffic, the crowd, plus the noise and air pollution that you can have.
You can also save from transportation cost, which can be used to improve the business.
2. You have a lower head, instead of overhead expenses.
One of the main considerations in owning is the space to put up the business along with the utilities to settle.
A home-based business can save a lot not only in paying but in thinking about how this can be settled as well.
3. You will pay less taxes.
Another financial benefit of having a small home business is having a less tax to pay.
For businesses, you can write off different expenses from your income. This can be food, your phone, car, internet, and space at home.
4. You can enjoy more time with your family and loved ones.
This is another priceless privilege of owning a home-based business. Besides having more time to savor for yourself, you can also spend more time with your family. You do not have to feel guilty for failing to provide the quality time your children or spouse is asking to receive from you.
Also, if your family member or children are old enough, they can even help you in your venture. This can later be a family-owned business.
Some Disadvantages of Having a Small Business at Home
However, here are some of the things that you can find uncomfortable owning a home-based business:
1. Check Certifications and Other Requirements
While owning a home business is a privilege for every citizen, you will need to look at different certifications. Some neighborhoods don’t allow owning a home business.
For example, you can’t make a portion of your house into a restaurant without proper certifications. It might work in some areas, but there are usually local requirements in your neighborhood.
2. Just because you want it, doesn’t guarantee it can work for you
Another issue that you can face in owning a home-based business is other factors that you fail to comply with. Some of these can be signage, parking, and complying home-based insurance.
3. The possibility of feeling isolated is always present
With the awaiting more moments spent with one’s self and loved ones, chances of feeling isolated can arise. Working in the office can feel fast paced.
At home, you have to face the everyday routine of working on the business alone or with few people. This feeling is usually experienced by people who are already exposed to the professional world.
4. Managing a home business can interfere with family life
No matter how exciting it is to be with the family, sometimes, conflicts between family and work can occur. Unfortunately, there has been a blurred line between acting as a house member and being a business owner.
How to Resolve the Disadvantages of Having a Small Business at Home
While problems and disadvantage are part especially in starting a home-based business, here are some of the things that can be done to somehow, if not entirely, resolve it:
1. Careful planning
Like in other ventures, home-based businesses also need careful planning and goal setting. It helps you identify what is your vision for the venture, and this can determine your course of action.
2. Importance of time management
Experts recommend setting a realistic, workable schedule as part of the planning to establish better habits. It can also reinforce the time for one’s self, family, and business.
3. Do not neglect to inform family members about the business.
Telling your family members about your plans of putting up the business will not only encourage them to support you, but they can also be aware of the adjustments they have to make. Also, this can help you determine possible issues that may arise that can affect the other family members too.
Frequently-Asked Questions:
Do I have what it takes to own up a home-based business?
Despite the resources and finances, you may have, you are still the most essential asset of your home-based business. One way that you can consider is to know what do you want to offer. You can also start by knowing what are your passions are. Everyone can be a potential home business owner.
What businesses are suitable as home-based ventures?
While various services can be considered, as mentioned, you can align it with your passion and interest. Also, you can make check your location, and identify what is its needs or commodity that it still doesn’t have.
Can I consider having a business partner for a home-based business?
One thing that makes home-based business better is that you can explore other aspects, like additional manpower. Having a business partner can or cannot be good for business, depending on various factors. Regardless, having a business partner doesn’t guarantee the venture’s success or failure.
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