More people are joining the ranks of the self-employed every day. And why not? The advantages of working and starting a business from home can include flexible hours, no commute, and no office politics. You can even earn money in your PJs!
According to reports, the Great Resignation of 2021 saw up to 4.5 million people quit their jobs without intention to return. And a lot of those people are choosing to start businesses from home. If you’re considering taking the plunge and building your home-based brand from scratch, know that there are a few things you need to consider first.
The following are examples of the things you should consider before pushing through with your home-based business.
Finding your niche is one of the most challenging tasks for starting a business. You need to clearly understand what you want to offer the world. This will be the foundation of your business and what will help you stand out from the competition.
To help you determine your niche, consider the following questions:
- What are you good at?
- What are you passionate about?
- Who are your customers, and what are their pain points?
Let’s say you want to start a freelancing business that offers copywriting, social media management, and web design services to other companies. But upon answering the questions above, you realized that you’re only good at social media management and are passionate about writing. In this case, you can focus your business on offering social media management services and outsource the other benefits to freelancers.
Instead of offering traditional services, you can also choose to focus on a niche market. For instance, you can offer the mentioned services above but focus on working with real estate businesses or those in the hospitality industry.
Your Business Area
Some home-based business owners manage their brand from their bedroom, basement, or kitchen table. But if you can, find a separate room or area in your house that you can use as your office. This will help you get into the right mindset when it’s time to work and make it easier to focus on your tasks.
If you don’t have an extra room, consider turning your garage into your office. If you don’t have a garage or your garage is already being used as storage, you can build a detached garage instead. This will give you the extra space to develop your business without sacrificing your home’s living space.
Most people have no first-hand experience building their own detached garage. If this is your exact dilemma, you can find detached garage plans online. Thankfully one in a suitable size and design that will match your home’s style and accommodate your brand’s spatial needs is easy thanks to the internet.
You only need to do a quick online research to find a reliable supplier to help you build your detached garage. One tip is to check the details carefully and choose a garage plan with optional features. It’s better if the plan already has a list of needed materials. With a new garage that you can turn into your home office, you can start building your business area while drawing a line between your personal life and work. This allows you to focus more on your business goals and achieve a better work-life balance.
Your Support System
One of the challenges of working from home is having a solid support system. This is especially crucial if you have young children or are currently tending to a loved one who requires constant care and attention at home. Consider your partner, family, and friends when starting a business at home and how they can help you succeed.
Your partner can be your sounding board for business ideas, help with childcare, or take on additional household responsibilities so you can focus on work. Family and friends can also lend a helping hand when needed and provide moral support when things get tough.
Don’t forget about building a professional network with other business owners and entrepreneurs. These people can offer advice, introduce you to potential clients, and help you grow your home-based business.
The Costs of Running a Business at Home
Many people are drawn to the idea of starting a home-based business because it’s cheaper than renting or buying office space. But there are still costs associated with running a business from home. These include the cost of your internet connection, phone line, office equipment, energy usage, and other tools or equipment your business needs to operate. You’ll also need to factor in the cost of marketing and advertising your business.
When starting a home-based business, you’ll need to be mindful of your spending to ensure your business is profitable. One way to keep your costs down is to start small and scale up as your business grows. For example, you can start by working from your home office and then upgrade to a dedicated office space once you have the resources and revenue to do so.
You should also ensure you take advantage of any tax deductions and credits available to home-based businesses. These can help offset the costs of running your business and make it more affordable in the long run. Examples of common deductions for home-based businesses include the home office deduction, internet, and phone expenses, and the cost of business-related supplies and equipment.
A home-based business can be the key to achieving your entrepreneurial dreams. But it’s important to do your research and plan carefully before taking the plunge. By considering the factors above, you can set your home-based business up for success from the start.