Starting a home based business is constantly on the minds of millions (if not billions) of would-be entrepreneurs all over the world. There’s no secret recipe or formula for starting your own home based business. Quite a lot of established businesses and companies in the world today began as home based businesses; starting out with small budgets before growing to become a huge and successful enterprise over time. You’ll be surprised to know that big companies like Mc Donald’s, Apple Computer, Ford Motor Company and Hershey’s that have been around for years, all had humble beginnings and started out as small home based business outfits.
Starting a home based business has a lot more advantages and benefits than previously thought; although it’s accompanying startup challenges can be trying at times. Surprisingly, many academics and professionals in the world today are opting out of regular 9 to 5 jobs and careers to start their own home based businesses and enjoy the pleasure of transforming what they love doing into careers that pay well enough.
Running a business all by yourself rather than working to make the other guy rich is the dream of every entrepreneur. With little capital, anyone can start a home based business and work hard to make it big. But the most important thing to do is to start with the basics. If you think you are ready to journey into the world of entrepreneurship and become your own boss, here are some of the basics you will need to consider before starting a home based business of your own.
- Financing: a few agencies and banks make it a policy not to provide loans for small businesses. Notwithstanding, some of them still consider personal loan options for smaller amounts which you can apply for in order to finance your home based business. There are also financing loan programs with low interest rates available for small start-up companies you can also look into as a means of supporting your startup capital.
- Zoning: you need to contact your district zoning department to find out if your area is cleared or zoned for home based business use. If not, you may have to forward a petition to the board of your zoning county to have your area re-zoned for home business operations. This is easier said than done. You would have to prepare an excellent and compelling business plan, along with proof that your home business would not pose a problem to your neighbors and surrounding.
- License and Permits: if you are going to be selling products for profit, then you will need to apply for a seller’s permit via the state’s department of revenue before you start operating your home business within the area. There is usually a small processing fee to be charged, while the permits and licenses must be renewed every year or two. Also, you may require licenses related to the kind of business you are starting. If for example you are thinking of running a live bait store from home, you would need a permit from your department of natural resources. Endeavor to check into these license and permits carefully before starting any home based business.
- Advertising: there are several ways to advertise your new business. Advertising in your local newspapers or magazine, setting up a small business website, contacting your municipal chamber of commerce; and making use of numerous free online advertising media are just a few to get your businesses noticed by potential clients out there.
- Selecting the Right Wholesalers: if your home based business involves reselling or supplying products to customers, then you may want to consider partnering with wholesalers within your area or state; as shipping costs alone can cut into your profits, especially when you are shipping to and from distant places. Another technique you can use is to do an online search on your specific product and see what you come up with. But be sure to carry out a comprehensive investigation before giving up your money to any wholesaler you find online.
- Marketing: customers are the key to every business, small or big; therefore finding low-cost and effective customer-focused marketing strategies to help pull the necessary traction you need for your business is also one of the basics of starting a home based business you must work out.
- Maintaining records and accounts: of course you will also need to about stuff like basic bookkeeping and accounting or how to make use of accounting and bookkeeping software. If you have no experience in this area, you can easily outsource this aspect of running a home business to an experienced book-keeper or accountant. You can further reduce the costs of hiring these professionals by asking close friends and family ember to help you out in this area.
- Taxes: knowing the right tax bracket your home based business falls into, knowing how to properly file your annual tax returns and complying with sales and other tax heads are also some of the basics of starting a home business you will need to acquaint yourself with.
Related: Organizing Your Home Office
These are just a few of the basics you need to cover before starting your home based business that will help to get you going on thinking about your general business ideas and what it will take to get you started.