In the USA, almost 70% of new businesses are started from home. And 75% of business owners are either very happy or somewhat happy. To see more statistics or learn the top reasons why new businesses fail, click here. Fortunately, with proper planning, you can be among the 30% of businesses that are successful.
Nowadays, with just about everything being available online, it makes sense to save money and avoid the cost of renting business premises. You can also outsource the CRM function, storage, and delivery. So, what else is needed to start your one business from home? We look at the key aspects so you can be more successful, even if this is your first venture.
What Is Your Business Idea?
Businesses arise to take advantage of gaps in the marketplace. Unless there is demand for your product or service, you will not be able to generate income. In an ideal world, the business you choose to start is also something that you are passionate about. However, in practice, this does not happen a lot.
Most entrepreneurs research their business idea by looking at other companies already active in the industry. They identify an area that is being badly done or not addressed at all. In this way, they find their niche.
It is always recommended to start a business in a niche that does not have huge competition. Alternatively, you can focus on something that lacks in the industry you are targeting. Regardless of what you will choose, you need to have a solid understanding of what you will want to do. A business that does everything is not feasible.
Draw Up A Business Plan
If you plan to apply for funding for a small business, you will need an extensive business plan. It will show that you have thought through all aspects of your business, have a long-term plan in place, and have a good idea of what you need. There are many online templates for business plans.
Your financials will be the most important part of your business plan. It should indicate your break-even point, startup costs, pricing structure, available funding, and anticipated expenses. Additionally, you should have strategic objectives and KPIs to measure them.
Remember that one of the worst mistakes you could make when you launch a business is to do so without a business plan in place. This is a huge error because without the plan it is impossible to know if things are going well or not.
Determine A Legal Structure For Your Business
The simplest structure is a sole proprietorship. You own the company completely. However, business debt or claims can access your personal assets.
Otherwise, you could opt for a limited liability company (LLC). An LLC is responsible for debt and creditors and claimants cannot touch your private assets. It will need an Employer Identification Number (EIN). Click here to find out how to decide which one is best for you.
Make sure you comply with any licensing obligations. Get business insurance. Hire an accountant to handle your books and income tax returns. And, if necessary, do seriously consider an attorney who could help you with your legal issues. This is better done sooner rather than later.
Open A Bank Account For Your Business
The business will require its own bank account. Many banks offer special account features for businesses. But, they might not be the very best option available for you.
If you plan on working overseas as a digital nomad, look at ways to transfer money cheaply. For example, you can use a money transfer service such as Ria Money Transfer, Wise, Venmo, and even Paypal to move money between your account and one for your family. This will enable you to make and receive payments in a foreign currency at better rates than a standard bank transfer. Do not underestimate how much money is lost on currency exchange. With options like Ria, this can go down drastically.
The last step is to attend to marketing. You will need a marketing strategy. For this, you will have to work out who your clients will be and what channels will attract them. Lastly, design a logo for your business. These are the foundations of your marketing campaign.
Keep in mind that when you want to promote your business, you have to choose a marketing strategy that is appropriate. For instance, if you are targeting people between the ages of 18 and 30, using Facebook might not be a good option. It might be a lot better to use other social networks, like TikTok or even Twitter. For some home-based businesses, YouTube can be a good option. And you will surely need a website as the center of your marketing strategy.
If you do not know what marketing channel to use, the best thing to do is always to hire professionals. Whether you employ them in-house or you directly hire a marketing agency is up to you.
If you follow these steps, your business from home will be up and running quickly and effortlessly. But, remember the fact that there is no substitute for hard work. What is very important at the end of the day is to keep growing and adapting.
You will surely make some mistakes as you launch your business and as you promote it. The way in which you react to these will dictate whether you are successful or not in the long run.