Why start a business from home?

There are many reasons to start a home-based business: to earn additional income, to supplement an existing salary, to seek new horizons after leaving a permanent job due to layoffs or downsizing, or to fulfill a lifelong dream. Whatever your reasons, thanks to the growth of the Internet and changes in the way people work, There has never been a better time to start your own business. You, too, can take advantage of the freedom of running a business from home, with its lower costs, reduced travel expenses, and the flexibility to choose the environment and hours that work best for you.

Suggestion: You’re in good company, as Apple Computers, Lush Cosmetics, Facebook, and even Ford Motor Company are just a few of the household names that started as small, home-based businesses. Then let’s get started.

Step 1 – Make a solid commitment to your new venture

Ask yourself a question: how many of the success stories you’ve read about were founded by people who just sat back and dreamed about it? The hard truth is that if you want to achieve something, then you need to make a commitment: for as long as it takes to be successful. It is highly unlikely that you will make your fortune overnight, but if you persevere, you will succeed. It doesn’t matter if you can only commit 15 minutes a day, the important thing is that you make those minutes count by always putting in 100% effort..

Suggestion: Apparently, Thomas Edison made 1,000 attempts before inventing the light bulb. He never said that I failed 999 times; He Said I Spent 999 Learning How Not To Invent A Light Bulb!

Step 2 – Do you have what it takes to become your own boss?

The answer is yes! It helps if you like to take risks and the responsibility that comes with it. It also helps if you like hard work, decision-making, and the challenges that come with owning your own business. And finally, it is extremely useful to be well organized, have the ability to meet deadlines and be able to work with numbers. But the fact is, if you don’t have all of these qualities (and very few people do), just find someone who does. So, for example, if you’re not familiar with the requirements around record keeping, hire someone!

top tip: Success is 5% inspiration and 95% inspiration.

Step 3 – what matter?

You might want to start your own beauty salon, pet sitting service, be a language tutor, physical therapist, landscape gardener, affiliate marketer, eBay seller, create self-help videos, set up an eCommerce website… the list is almost endless. The fact is that it doesn’t really matter. Because the steps to success are the same for all companies. What does differ is the way you manage and respond to the needs of your particular business or industry. If you haven’t decided on a particular business yet, there are literally thousands of business ideas covering every product and service imaginable. Whichever you choose, ask yourself the following questions:

• Is there an identifiable gap in the market for your product or service?
• Have you identified a product or service that you can’t seem to find?
• Can you live from your hobby or from something you are passionate about?
• Can you offer a better product or service than someone else?

Suggestion: At this early stage it is also worth exploring the common mistakes start-ups make and how to avoid them.

Step 4: developing your business idea

The next step is to dig a little deeper and define exactly what products and services you intend to sell, and just as importantly, who you will be selling them to. Even if you already have a fixed idea of ​​what you want to sell, you still need to focus more intensely. It’s not enough to say you’re going to sell pet products, you need to focus on what types of pets, and consequently what products those pets would need. Marketing your product and doing a little market research can make the difference between success and failure. You can discover your target market’s clothing buying, geographic location, and even who your competitors are. You can gather a lot of this information, simply by spending some time searching the internet and compiling a list of companies that are already operating in your chosen field. In addition, you can search the ads in local newspapers and stores to see who is available or even do your own market research by asking people on the street if they would be interested in your services.

Suggestion: Your family and friends often say it’s a great idea, even when they think otherwise, just so they don’t hurt your feelings. So ask some independent people.

step 5 – Do you need a business plan?

The good news is that not all businesses require a formal plan, especially if your home-based operation does not require outside financing. Click here for more information on start-up funding sources. The problem with a business plan is that not only will you have to learn how to put together a plan, but it can also take weeks to prepare, time that may be better spent concentrating on getting your business off the ground. In fact, studies have shown that having a formal business plan for a small home-based business really makes no difference to the ultimate success of the business. The time you may need to produce a business plan is when you are seeking potential financial support. It is not only for banks, but also if you have to reach out to family, friends or business connections. The clearer your vision and the more organized you appear, the more likely you are to get the support you want.

Suggestion: Matt Coffin, founder of LowerMyBills.com, raised $4 million in funding from investors simply by using a 10 page PowerPoint presentation!

step 6 – Initial start-up costs

Well, let’s say you’ve got your idea, you’ve spent some time looking at the industry and its market potential, now it’s time to make sure you have all the tools you need to get the first phase of your business off the ground. Below is a list of the most common items a home-based business requires to get up and running:

• A computer and associated software
• Internet access
• build a website
• Landline and/or mobile phone
• business letters
• Access to sufficient stock, if you sell products
• A designated space, preferably in a quiet place
• a desk

It’s not a long list and all of them can be had without breaking the bank.

Step 7 – Funding and Additional Funding

It may be that you are starting a business while you are still employed or have another source of income to cover you while the business finds its footing. If you don’t need any external funding, skip this section for now and move on to the next one. But there are a number of reasons why you might need financing, beyond simply paying for office equipment, website development, advertising, etc. One of the main requirements is sufficient funds to cover personal expenses while the business gets up and running and your clients start paying you! As a general rule of thumb, many trading advisors suggest that you should have at least three months’ worth of money saved, as it can take that long before you start to see a profit. So where do you go to get financing? Well, for starters, there are your own savings (if you don’t have faith in your idea, who will?), then there are your family members, friends and business associates. Further afield there are additional sources of financing such as bank loans, grants and equity financing from private investors. In these cases, it is strongly recommended to develop a business plan to persuade and secure the necessary financing.

Step 8 – Record Keeping

It’s not the most pleasant aspect of running a business, but it’s essential nonetheless. It is extremely important to keep accurate records of your income and expenses from day one: Start how you want to continue and introduce a suitable system. It not only allows you to keep a close eye on how well your business is progressing, It is also a legal requirement!

Some advices:

• Keep and file all your invoices and receipts related to your business (if in doubt, save them anyway and ask your accountant if you can claim them)
• Since you will be using part of your home for business, keep copies of utility bills so you can estimate how much is related to your business.
• You should be able to show what you have personally spent and what you spend in your business. So having a separate bank account will make life much easier.
• If you are employing staff, you must keep records of their wages and taxes and national insurance that you have deducted and paid to HM Revenue & Customs (HMRC)

Keeping good records will pay big dividends in the long run, as it will reduce your overall tax bill, make completing tax returns much easier, and help ensure that you pay your tax bills on time and avoid interest or penalties.

step 9 – Promotion of your new business

People used to say “build the best mousetrap in the world and people will fight their way to your door”. But today there are so many businesses that offer such a wide variety of products, how do you know which door to open? A wide range of online advertising services and more conventional offline advertising services are available to you, which when combined create a powerful weapon for attracting and retaining those all-important customers.

Step 10 – Do not leave it for tomorrow. Get started today!