One of the most challenging parts when starting your own business from scratch is figuring out where to even start. You would have to consider certain factors such as sourcing for equipment, creating a home office, and even determining the business structure you want to have.
If you’re wondering where to begin, here are a few tips and tricks that can get you started on your own home-based business.
While setting up small businesses require lesser startup capital compared to bigger companies, don’t underestimate the amount of funds you will initially need. The way you finance your business depends on a few factors like the type of business you are having, whether it is product or service-oriented; creating a new company from scratch or buying a franchise; the operating funds needed, and the equipment required.
Before going any further in setting up your own company, make sure you have enough funds beforehand.
Just like in any job, you should have a dedicated work space in your home. You want to create the most conducive work environment that you possibly can with minimal distractions. Even though you’re based at home, you are still working a job. Try to stick to your designated work space as much as possible and stay away from working in places of rest like your bedroom.
Additionally, make sure that you have the necessary furniture and equipment set up in your home office or work space. This can range from filing cabinets, shelves, as well as a proper work desk if you don’t already have one.
As a home-based business owner, chances are your business is set up through a website or a social media platform. Since you will be operating from home, you will need to determine your communication methods with your customers and ensure that you have stable internet connection at all times.
Regardless of whether your business is running on a website or on social media, it is important to stay engaged with your audience constantly since you have no physical store or retail space. Staying connected through social media or email marketing will be helpful in retaining your audience and attracting new ones as well.
Compared to being employed in a company where the business plans have already been laid out by your employers, you are now the boss. This means you are also in charge of creating a plan for your business.
A business plan typically includes an executive summary, your company goals and objectives, a company and financial overview, a marketing strategy, as well as a comprehensive list of your products of services. Since this is the foundation of your business, having all of this important information written down in black and white is essential, and will also serve as a roadmap as your business grows overtime.
You may just be setting up a small business, but you still need to choose the business structure you want to have. Most entrepreneurs who start their own businesses at home are sole proprietors. However, depending on the type of business or industry you are in, you may also consider alternative business structures such as a Limited Liability Company (LLC) or a Subchapter-S Corporation.
Once you have established a business structure, ensure that you have the necessary licenses and permits before starting your operations.
Although you are working in the comfort of your own home, don’t forget that you are still running a business at the end of the day. When it’s time to work, make sure you continue to adopt proper business practices especially when it comes to recordkeeping.
For all financial and administrative matters, consider creating a bookkeeping or filing system that works for you. You may also want to register for a business account to keep your personal and business finances separate.