Did you know that almost 70% of the people who start small businesses in the U.S. start them in their homes? You should consider taking this approach to starting a small business if you’re thinking about trying to get one off the ground.
There are some things you can do to give your home-based business every chance to succeed. By taking the right steps, you’ll put it in a position to grow so that you can eventually move it out of your home.
Here are ten tips for starting a legit home-based business this year.
1. Begin by Coming Up With a Great Home-Based Business Idea
What exactly is your legit home-based business going to offer to the world? That’s the very first question you should ask yourself when you’re in the process of planning out your new business.
Maybe you’re going to make cakes, cookies, and other tasty treats for those in your community. Or you’re going to offer virtual accounting services to those throughout your state.
Whatever the case, you should begin by coming up with a winning idea that you believe in. If you’re not 100% committed to your home-based business, there’s a decent chance it’s not going to enjoy the kind of success you want it to.
2. Create a Name for Your Business and Make It Official
Once you have a great business idea in mind, go ahead and kick around some ideas for your business name. Brainstorm with the help of family members and friends to come up with a name that you love.
After you have something great picked out, you can go through the process of registering your business and making it an official entity. Your business isn’t going to feel real to you until you do this and make it legit.
3. Put Together a Budget for Your Business
You’re going to need to scrounge together at least a little bit of money to run your business. Do that next so that you know how much money you’ll have to devote to your business.
If you don’t have enough money saved up in your own savings account, you may have to borrow a little bit of money to get your business going. You can take out a business loan or borrow money from family members and friends to get started.
4. Set Up a Spot in Your Home to Run Your Business
Thinking about trying to run your home-based business from your couch? Please think again.
While there’s nothing wrong with working from your couch every now and then, you need to have a dedicated space for your home-based business. In a perfect world, you’ll be able to create a home office to work out of all the time.
Keep track of any money that you spend on your home office as well as any ongoing costs associated with it. There may be home office deductions you can use to lower your tax responsibilities later.
5. Start Scouting Your Potential Competition
You’re not going to be the only home-based business in town. There are going to be other businesses out there trying to do something similar to you.
Take a look at your competitors and see what they’re bringing to the table. Your goal should be to make your products and/or services better than or different than theirs so that your business stands out.
6. Identify Which Market Your Business Will Target
In addition to checking out your competition, you should also figure out which market your home-based business is going to target with your products and/or services. Are you going to go after:
- College-aged adults
- Middle-aged people
- The elderly
You should have a very clear target market in mind. You might even want to sit down and sketch out your ideal customer so that you know who you’re going after with your home-based business.
7. Figure Out Which Specific Products and/or Services Your Business Will Provide
Before starting a legit home-based business, you might have some ideas as far as which products and/or services your business is going to provide. But you need to hone in and get as specific as you can with what your business will offer.
Write out a list of each and every product and/or service that your business will provide and think about how much you’re going to charge for them. This will let your customers know what you have to offer, and it’ll also let you know how many products and/or services you need to sell every month to turn a profit.
8. Design a Website for Your Business
If your business isn’t going to have a store or a commercial office that people can visit to obtain your products and/or services, a website is going to be an absolute must.
Over 40% of small businesses these days get away with not having a website. But you’re not going to be able to do it with a home-based business that doesn’t have a physical location.
Work with a web designer to come up with a great website for your business. You can use it to instill confidence in your customers by making a great first impression on them.
9. Build a Marketing Plan for Your Business
After you’ve set up a website, you can use it to market your home-based business. But that shouldn’t be the only thing you use for marketing purposes.
You should build a marketing plan that will allow you to get the word out about your business. You can market your business by:
- Hanging up flyers in your neighborhood
- Setting up social media accounts and connecting with those in your community with them
- Using guerrilla marketing to your advantage
A great marketing plan will make people aware of your brand and get you off to a great start.
10. Focus on Getting Your Business to Grow
You don’t want to run a home-based business forever, right?
Of course not. You eventually want to move your business into a commercial building where it can thrive.
Get it there by emphasizing growth within your business. Add new products and/or services to your website all the time and continue to market your business to get it to grow.
These Tips Should Help You Get Your Legit Home-Based Business Going
There is nothing easy about running a legit home-based business. You’re going to need to be as committed to it as you would be if you were opening a business with a storefront.
Use the tips found here to get your home-based business going at the beginning. They’ll allow you to build your business up and turn it into something you’re proud of.
Learn more about starting a small business by reading the other business articles on our blog.