There is no secret formula for starting your own home based business. Many old and established businesses and companies began as home based businesses with operations and functions starting out with small budgets, few people and the basics of office operations. You’ll be surprised to know that big corporates like Ford Motor Company and Hershey’s that have been around for decades and turned the idea of business on its head, started out as small outfits from an idea that generated into a wave.
Today’s giants like Apple Computer and Facebook also had small origins and see where they have reached today. It is estimated that nearly half of all small and medium businesses in the US are home based; which fact is true of many global businesses in other countries too.
Starting a home based business has more benefits than previously thought although the accompanying challenges can be quite frustrating. But it’s not surprising that in today’s technology dominated world, many academics and professionals are opting out of regular 9 to 5 jobs and careers to start their own home based businesses enjoying the freedom of pursuing their vocation and turning them into well paying careers.
Anyone can start a home based business with little capital and work hard to make it big, but the fundamental thing to do is to start with the basics. A little brainstorming with family and friends and some serious introspection on the following points is absolutely necessary.
• Is a home based business the best option – what are the factors involved?
• Living and working in the same location – creating work space and infrastructure, cost of adjustments to living space, areas where family life will be impacted, issues with neighbors etc.
• Listing out challenges and benefits – pros and cons of starting the business, sustainability, expenditure and profits, expansion plans etc.
Obviously, an idea will already be in place for the type of business to start – self-made products and goods, marketing of services, dealership, home services, eatery and confectionery and so on. Any area where this is already some knowledge and expertise and additional people can be roped in to help is a great option to being with. In some areas, a home based franchise of an established business may also be good, but as always, there are hidden pitfalls that are to be examined seriously before signing contracts.
Once the initial idea has been whetted completely, then starts the practical side of establishing a home based business. Here, some very crucial aspects are to be looked at.
• Local government rules and regulations – legal issues, community or location regulations etc. have to be understood
• Financing – some banks and agencies do not provide loans for small businesses; however personal loan options for smaller amounts can be examined. There are also start-up financing loan programs with low interests provided the business falls into one of the categories pre-approved.
• Marketing – customers are the key to every business, big or small; hence, finding cost-effective and customer-centric strategies have to be worked out
• Taxes – getting the right taxation brackets, filing annual returns and complying with sales and other tax heads are very essential
• Maintaining accounts and records – if there is no experience in this area, getting the help of an accountant or a book-keeper is very necessary.