Working from home and running a business from home certainly aren’t new ideas. In fact, many people have been doing this for many years. However, in recent times, people have been forced into remotely working. Some hate it, while others have used it as an opportunity to grow their business, start their own business, or just become more productive using the flexibility it provides.
More people are now starting to realize that working from home and running your own business from home are both very realistic options that aren’t as scary as you think. Saying that, just like any business, there are good and bad points. The key is the see the problems and pitfalls and know how to overcome them.
If you want to begin a home-based business, there are several different things you need to consider. To help you start on the right foot and know where to start, have a look at some of the most important below:
One of the best things you can do before anything else is to do research. Research all the aspects of a business, from business formation and starting grants, through marketing and social media management. The more research you can do, the better. It will only aid you and give you the information that you need to get off to the best possible start. It will also help you create a plan of action and identify areas you may need to educate yourself on.
Your Company Name
This will possibly be one of the first decisions you make. You will need to know what to call your business so you can start to spread the word and become recognizable. Are you going to choose a name that describes what you do, what you stand for, who you are, or something a little different and unique? If you think that you may become a Limited company in the future, it is also wise to look up your chosen name as it may have already been taken, and you don’t want to have to change your name as you grow if you start to become a popular brand.
The Structure of Your Company
When you start a business, you need to identify the structure that will work best for you. Sole, trader, limited company, pr a partnership? Each different structure has an impact on your responsibilities, such as the taxes you pay, your take-home profit, and what would happen if you made a loss.
If you want to make money in your business, someone needs to buy your services or products. Market research is one of the most vital steps you need to take towards having a successful business; therefore, it is important for you to start investing in your marketing strategies. The aim of the game is for you to be confident that you can attract customers to you and that they will buy from you. Show them what they need and what you can do for them.
When looking at marketing, there are several different areas that you need to focus on. These include:
It is important for you to do your research when it comes to marketing. Use it to identify your target market and narrow down where you should market your products or services. There is no point in using Instagram, for example, if your target market doesn’t use it. You should also have a close look at your competitors, the way they market, and the prices that they use.
Social Media Marketing
This is something that has really taken off in the business world, and it is something that you can’t afford to miss out on. Most people nowadays use one form of social media or another and access them every day. This making marketing on platforms such as Instagram, Twitter, and Facebook invaluable. What’s even better is that is it’s either free or minimal costs, leading it to be one of the most used forms of marketing for business. As well as marketing and being able to target your audience, it also gives you the opportunity to engage with your customers and drive sales to your website.
Whether it’s business cards, flyers, or a business website, it is important for you to make considerations when it comes to the materials that you fro a successful marketing campaign. There are ways that you can keep the costs low, but remember the golden rule, that you need to make sure you do your research and use the tools that will work best for your business.
This is something that has been used for many years, but it is something that is growing in popularity. Influencers are people who are on platforms such as Instagram and Tiktok who often have a loyal following that is quite large (usually in the thousands but sometimes in the millions). Many companies offer influencers their goods/services for free or offer payment for them to be seen on the influencers page. If an influencer with a good following starts to use your product, you can guarantee to will see some sales from it. They are influencers for a reason.
A Pricing List
Once you know exactly what you are offering and to who, you need to know how much you are going to charge. It will largely depend on the market rate and the value that your potential customers place on it or what you do. This is where you would use some of your market research to assist you in making your decision. You need to look at things such as the quality of what you are offering and the value. Are you offering a premium service or something that is budget? Always make sure you price accordingly.
Where Are You Going To Work?
You, of course, need somewhere to work. It an essential part of running a home business. You need to have somewhere that is comfortable, clean, and quiet to be able to work. Clearing an area on the kitchen table amongst the kids having their breakfast just isn’t the right space for you to be productive. Instead, try to have space where you can get out the documents you need to, can have a private and professional phone call, and somewhere away from distractions. You may also want to think about renting a space in an office once or twice a week.
Regardless of the type of business you are going to be starting, the chance is you will need some equipment. Even if it is just a phone, computer, and a desk, make sure you have it sorted before you start. Create a list of absolutely everything your business needs in order to operate and make sure everything you are using is in good working order. If you plan on starting your business, but your computer has seen better days, you may want to think about upgrading before you start getting down to business. Otherwise, you could be left with a costly problem when you need your computer the most. If you do need to get anything, make sure you keep the receipts for when you do your taxes at the end of the financial year.
A New Business Bank Account
It is far easier for you to have a business bank account, especially when it comes to doing your taxes. It is important for you to keep your personal business finances completely separate. Even if you are just a small sole trader it is recommended. You could choose to have a second personal bank account instead. However, if you expand in the future or borrow any funding, then you are much better off starting with a business bank account.
Hire An Accountant
There is nothing saying that you can’t handle your finances yourself, complete your own taxes, and look after your company accounts, however, an accountant is an excellent business investment. They will save you time and frustration and give you the peace of mind that you are doing everything legally and above board. As well as this, you can also save money. This is because they make sure you are taking advantage of any tax reliefs or refunds you may be entitled to.
Starting your own business from home can be a rewarding and amazing experience, as well as the start of a journey that will contain frustrations and plenty of late nights. But, if you want to make your business a success, you need to be passionate and have some self-belief that you can get through anything. Sometimes your passion can get you through some of the most difficult times.
This short guide should help you to get off on the right foot when starting your own home business. Have you been spurred on to start your own business? What have you started to think about it?