A home based business doesn't require another premises, which allows business owners to cut down their overheads and offer more competitive prices. This can be a fantastic way to get a new business off the ground, as you will be able to beat your competitors on price and gradually raise your rates as your customer base grows. Whether you are buying and selling or offering a freelance service, a home based business can be a fantastic way to supplement your income.
What sort of businesses can be run from home?
If you are considering small business ideas, there's a huge range of services you can offer from home including web design and development, copywriting, content writing and blogging, graphic design, social media, art design, photography, application design and development and many more. You can even start a profitable import and export business from home, though these often grow to require additional space and staff.
Running a business from home is easier now than ever before – you could be making sales with as little as a website, an internet connection and a telephone. If you need a larger office space or access to meeting rooms, there are shared spaces that can provide you with one-off or ongoing access to their facilities at very affordable rates. Some home business owners even choose to route their mail through services like these, in order to secure a more prestigious postal address that conveys trust and credibility.
What should I consider before starting a business from my home?
Before starting a home business, ensure that you are well-versed in every part of
your industry. How will you go about customer acquisition? Have you done any market research? What sort of advertising is most appropriate? Home based businesses are often startups, online businesses or small businesses, which begin with only a small amount of capital – therefore, it is vital you stay on top of cash flow management to ensure that your business is healthy and profitable. As an employee, you generally don't have to think too much about superannuation, insurance, taxation or banking, but all of these are important considerations when working for yourself.
Questions to ask yourself before starting a home based business:
Am I comfortable with the day-to-day management of a small business?
What is my plan for the first 100 days?
What is my goal in starting the business?
Does my home conform to the OH&S requirements of workspaces?
Do I have basic bookkeeping software to keep track of my income and expenses?
Do I know how to put together an invoice?
How will my customers find me?
Do I need a website?
Should I consider an eCommerce strategy?
Should I be using social media?
Starting a business from home offers many advantages, but it's equally important to understand your legal obligations – consider speaking to a business coach or legal professional to ensure you are meeting your reporting responsibilities and taking advantage of any incentive schemes or tax breaks available to you. Most small businesses employ accountants and bookkeepers to ensure that they have dotted their i's and crossed their t's come tax time.