More than half of all U.S. businesses are based out of an owner’s home. Prepare for the ups and downs of starting a work-at-home business with these six strategies on how to start a home business.
1. Weigh the Pros and Cons
Working from home sounds brilliant to many people. Still, before you begin, truly take stock. Being your own boss, avoiding a commute, and being able to be flexible about work hours can be advantages. Yet, consider:
- Are you someone who can live and work in the same place?
- Will you be accountable to the business when working at home as your own boss?
- Can you be disciplined about meeting the business’ needs when facing increased demands from family and friends now that you are at home?
- Will you miss the social interaction and opportunities to network?
2. Make a Plan
If you are the type of person who just jumps in, slow down. Starting a successful home business should begin with a business plan.
The Small Business Administration (SBA) describes a business plan as a living document which “is an essential roadmap for business success.” This adaptable, long-term plan should outline:
- What product or service does the business offer? What are your differentiators? What market do you serve?
- Research of your industry, market and competitors
- How the business will be structured
- Plans for marketing or sales strategies
- Funding needs and financial projections
3. Make It Official
If you are working at home, alone, without employees (having your kid vacuum the office doesn’t count), you don’t necessarily need an Employer Identification Number. However, getting one is easy, free, and lets you keep your own Social Security number separate (reducing the chances of identity theft). You can apply online at the IRS website.
You should also research requirements for the locality where you will be working. You may be required to register a trade name, fill out a form for a business license, or need particular permits.
Start a business banking or credit union account using your freshly minted EIN to keep all business-related deposits, withdrawals and transactions separated from family finances.
4. Get Organized or Get Help
A business requires daily operations help. When you start a home business, you become the administrative, HR, IT, accounting, sales, marketing teams — all at once. To make working for yourself work for you get organized regarding invoicing, time tracking, information storage, service and billing options.
You may be able handle all these tasks on your own; today there are also many online, outsourced options. Nevertheless, start out with a solid idea of what you will do and what you will get others to do — before it becomes so overwhelming that you realize you are dropping the ball (or several of them).
5. Select a Communications Partner
Starting a new business with a reliable telecommunications partner provides an affordable means of keeping in touch with clients, suppliers and business partners. A Voice over Internet Protocol (VoIP) business phone system — relying on connection to the Internet rather than telephone lines — makes many advanced communications features available to the business of any size.
VoIP services provide video conferencing, digital voice mail, hold music, virtual faxing and, often, a Follow Me feature that forwards your new business number to a cell phone or other phone number when you’re on the move.
6. Spread the Word
Let people know you have started your business. Tell friends. Tell family. Tell neighbors. Tell the delivery driver dropping off the business cards and other marketing materials you order online.
You might also:
- Launch a website. Eight out of every 10 customers are doing their research online today.
- Start a business social media account. Notice the suggestion to start just one. If you start on all channels at once, you won’t do a good job marketing on any of them. Pick the one that is most relevant to your client base and start there.
- Track your industry and its influencers on social media to keep current with the news, also contribute to the conversation to raise awareness of your business.
Starting a business from home can be very rewarding, but there are challenges too. Preparing for the experience can make all the difference for your business’ success.