Well, when it comes to running a business from home, it might sound simple but it is just as complex as starting a full-fledged business. Even when your business is running from home, it requires the same attention and time that you would give to a business that had a separate office.
We often take our small home business very non-seriously, while in reality they are more difficult to work with because the team is small and you have to do most of the work by yourself. Well, this doesn’t mean you should stop or not start your business, because even though it is difficult, if you start now, with time and effort you can take any business to new height.
So, if you are thinking about starting a small home based business, there are a few things that you need to get done in order to get started. Read along and learn about all you need to know in order to kick-start your small business.
Decide What You Will Sell
Well, before starting your business, one thing you need to be clear on first is what you will sell. You can run both a service based business, or a product based business from home. Well, when it comes to deciding your product or service, people often go easy on that part. Well, the quality of your brand depend 80% on your product and then the rest come later.
So, when you decide on a product, make sure it is top notch in terms of quality, quantity, and stands out when you compare it to the rest of the market. If your product or service is not unique, even if you launch or market your product, its ordinariness will not bring you sales.
Draft a Plan
After you have decided what you want to sell, you need to make a business plan, which will decide how you will sell it. Well, whenever a person wants to start a business, they need to have a well thought out, and well-drafted plan, which at least explains what plan and roadmap the business will run on, in the entire next two years. A plan not only gives you a vision of what you will do for two years, it keeps you on your toes and you always have it in front of you if you lose direction.
Your business plan should have your company’s motif, about your products, it should discuss your future plans for the business, and the entire plan and strategy that you have for your launch. When drafting a plan, put yourself in the shoes of a critic and see if your plan has loopholes. Take expert advice and make a solid plan.
Decide the Legal Framework
Once your plan is done, one thing you need to do for your business is decide your legal framework. There are several kinds of legal structures and choosing the right legal structure for your kind of business is one of the most essential parts about getting your business registered. Well, when it comes to small home-based business who want to start right away, people often select sole proprietorship.
However, we would suggest you to do your proper research before choosing your company’s legal structure because if you want to take your business properly, a Limited Liability Company (LLC) is good for such businesses too, because it provides flexibility in your work and creates a legal separation and your business is filed with the state. This makes things more convenient for your business. Also, make sure you comply with each state’s rules and regulations, for instance when you’re starting your incorporating your company in Hong Kong registration see what the country’s business policies are beforehand.
Apply for an EIN
Well if you have a vision for your business to build your own team and hire employees, and if you have registered your start up as an LLC you will be needing an EIN, Employer Identification Number. Getting an EIN will help you keep your social security number safe to yourself and you will have a separate number for your business. This will keep your identity and your business secure.
Open a Business Bank Account
When you start a business, it is important to take it professionally and keep your business finances separate from your personal finances. While the financial aspect of your business is a completely separate affair, you should keep a separate bank account for your business as it helps you manage your finances well.
For example, several banks have accounts for business purposes. So, you can easily get a bank account opened which suits your business requirements.
One thing that many home based businesses overlook is the fact that they do not get insurance for their business. Well, it is super important as a business owner to get insurances. Well, when you look into a Business Owner’s Policy there are different kinds of insurances that suit your business. Some of the important insurances are, General Liability insurance, commercial property insurance, and business income insurance. These are not only for the equipment you use, these insurances cover your business’s financial aspect, your property as in your equipment, and they are also for you employees for instance there is a kind of injury on the work place, it can be covered for.
Set Up a Work Space at Home
One of the most important thing you need to do before the launch is to set up an office space at home. By setting up a proper office at home, you will feel a sense of responsibility towards your business. Well, in order to set up a workspace you need your office equipment such as, a laptop, and a good internet connection, which is fast enough to keep your operations running.
If you have a product or service based business, you can set up a small studio at home for your operations. One thing that is most important when you have to run your business online, and that is a good internet service. For that, we suggest checking out RCN internet. RCN is an affordable, and fast internet connection and you can use for your business as it is super reliable. So, before everything else, get your internet and set up your workspace.
Make a Marketing Plan
Well, after you have fulfilled all the legal requirements, and you have a plan, make a marketing plan. If you do have a marketing plan start implementing it and prepare for your launch. Well, if you don’t have marketing plan, for an online home based business, it is best to implement social media marketing plans in their business.
Engagement and other activities on social media can bring you audience in a very little time. So, your marketing in your initial business stages or even if your business is old, should never stop. Come up with a good marketing strategy and start building your customer base.
When everything is done and you have marketed your products/services enough, all you need to do is launch. You can run a countdown on your social media accounts and create hype among your audience, so when you launch, you already have people ready to try your brand.
Well, these are a few tips we have to help you start a business from scratch. So, if you are also looking forward to start a homebased small business, this information can help you out in several ways.