Starting your own business from home is a dream that many people have. You don’t have to answer to a nagging boss, you can do everything according to your unique vision, and you get to spend more time at home with your family. While the benefits of owning and operating a home-based business are many, there are quite a few challenges that come with the endeavor.
For your business to be successful, you need to exercise great discipline, initiative, management, and leadership. Luckily, you can hone these skills with the right actions. Let’s take a look at some of the most helpful tips for starting a business from home so that you can make your dream a reality.
Effective Tips for Starting a Business from Home
Assess Whether Working From Home Is Right For You
The first step to starting a business from home is to determine if your home is the right place to start your business. While working from home may seem like the ideal set-up, it’s not right for everyone. There are about 400 million entrepreneurs around the world and no two work exactly the same way.
Think critically and realistically about the type of person and worker you are to evaluate whether your business will flourish from the comfort of your home. If you know that you get easily distracted by chores that need to be done or tempted by things like the TV, working from home may hurt your dream rather than help it.
It’s also important to figure out if your home aligns with your business needs. Not all startup concepts will be successful as a home-based company. If you need to host clients or have an inventory of products, you’ll need the appropriate space. You may be able to reconfigure your home so that a client won’t have to walk through your entire house to get to your office or so that you have more storage for your products, but not everyone will have the necessary flexibility for this.
Anticipate potential challenges you may face working from home and either find solutions for them or consider renting a separate office.
Designate Office Space In Your Home
Once you have determined that you will be able to start a business from your home, you need to set up a dedicated office space. Ideally, you’ll be able to use an extra room as your office so that you can physically shut out all distractions and do your work effectively. If you don’t have a whole room to dedicate to your office, claim a section or corner of your living room, dining room, or bedroom as your office.
Wherever your space is, set it up with supplies, materials, and decorations to make it feel like a place for working rather than living. Keep in mind that you’ll probably need enough room for a computer, a printer, and any other devices you need to run your business. You’ll also want to ensure that the internet signal reaches your workspace well and that there is plenty of lighting.
If you’re going to have a few other people working in your business with you, be sure that your workspace is set up for them as well. About 23% of startups fail because they have the wrong team, making your team selection and unity an important part of setting up your business. If your workspace isn’t conducive to working with others, you could lose them before the business has even taken off.
Research Laws, Licenses & Registrations
There are certain zoning laws that can prohibit you from running a business out of your home and you’ll need to be familiar with these laws to avoid any trouble. As no more than 40% of a residential property may be used for commercial purposes, you probably won’t have an issue if you’re only using one room or a portion of a room to operate your business. If you rent your home, you’ll usually need written permission from your landlord to run a home-based small business.
Depending on your state and town, you’ll need certain licenses to run a business from home. You’ll likely need a general business license. On top of that, you could need a home occupation permit, sales tax permit, and sign permit, among others. Be sure to check your local laws and regulations to ensure that you have all of the necessary paperwork.
In addition to researching local laws regarding business permits and licenses, you should look into what kind of laws regulate your specific business. If your business operates heavily off of the internet, know what kind of protections you have and precautions you should take. Within a single calendar year, about 87% of small businesses experienced a security breach. By knowing what kind of legal action you can take against these types of breaches and how best to prevent them, you can keep your business safe and profitable.
These are just a few of the many things you need to know when starting a business from home. Remember that preparation is the best way to guarantee success for your home-based business. With the right plans in place, you can launch a business in your home that will flourish for years to come.