Starting a home-based business can fill you with a full range of emotions. On one hand, you may be thrilled to get the chance to be your own boss and work from home, but you may also feel intimidated or even fearful about the unknown aspects of the process. While there are no guarantees that your venture will turn into a profitable success, thinking about a few important points up-front can help you to better prepare yourself and your home for the days ahead.
Assess Your Qualities
As amazing as working from home and running your own business can seem, you need to be honest with yourself about your traits, work habits and abilities. Not everyone who wants to have a home-based business has what it takes to succeed. Spend ample time honestly answering these questions before you take any further action to launch your business:
- How much money can I afford to invest?
- How much time and energy can I invest?
- Will my family and friends be supportive?
- Are my goals realistic?
- Do I think I can realistically run a successful business from home?
- How will my strengths and weaknesses affect my home-based business?
- Is there space in my home to set up a dedicated office area?
- How will a home-based business impact family life?
In addition to analyzing honest answers for these questions, take a closer look at your skills and personality traits. The successful home-based business owner has personal drive, is self-motivated and is very disciplined. In addition, this person has exceptional time management skills, loves to work independently, enjoys solving problems and is eager to continue learning new things. Being tech savvy is also a beneficial trait for entrepreneurs who work at home.
Take Care of Legalities
After you have ensured that you have what it takes to be successful with your venture, you should reach out to a business lawyer to address the legal aspects associated with running your own business.
You will need to register your business name and determine what entity you will run the business as. For example, will you start a partnership, a corporation or another type of legal entity? Your lawyer may also help you to walk through the steps required to obtain a business license and will review business compliance requirements with you personally.
Prepare Your Workspace
Now that you have taken care of the necessary up-front work for your home-based business, you can start setting up your home office. Select a workspace carefully. In most cases, choosing a removed area of the home that is quiet and that can be dedicated entirely to your business activities is smart. However, if clients will visit your home office, setting up an office in the front of the house is a better idea.
After you have decided where to set up an office, make a list of all of the equipment, supplies and furnishings that you will need. Properly budget for these items, and measure the space so that you ensure everything fits properly. To save money, you may be able to buy some items on consignment or used. However, all items should be high-quality and functional. For example, you need to have a good task chair that is comfortable to sit in for long hours each day, and you need a fast computer that meets your requirements. Lighting is also a critical element to pay attention to. Your home office ideally will have a combination of task, ambient and accent lighting.
Remember to spend ample time exploring options for technology, equipment, supplies and more before you make any buying decisions.
Analyze Your Finances
In many cases, a home-based business owner’s personal finances will be directly affected by business activities. You must understand your personal financial situation. Running a business out of your home is a cost-effective way to keep overhead low while you are starting out, but there are plenty of other expenses that will affect your financial situation. This includes one-time expenses, such as office equipment and furnishings. It also includes recurring costs, such as accounting fees, insurance, supplies and more.
Estimate how long you think it will realistically take you to break even and to turn a profit. You should have enough personal funds available to make ends meet until your business produces enough income to support your personal lifestyle. If not, consider lining up funding through a partnership, a loan or another financing option.
Create Balance Between Work and Family
A home-based business can affect the entire family in different ways. One area of the home may be off-limits to your family members. Your family members must be respectful of your work time and remain as quiet as possible while you are working.
Try to set up a home office and a regular work schedule that decreases the impact on your loved ones. You may also discuss the business and your needs with your family members. By doing so, you could identify and address concerns up-front.
In the End
Remember that these are only a few of the many factors that require your attention before launching a business. For example, you also should prepare a thoughtful business plan, crunch numbers related to business operations and more. Your preparation in each of these areas can help you to lay the groundwork for a truly successful home-based business.
Author Bio: Joe Peters is a Baltimore-based freelance writer and an ultimate tech enthusiast. When he is not working his magic as a marketing consultant, Joe enjoys spending time with his family, reading about latest tech gadgets and binge-watching his favorite TV shows. You can reach him @bmorepeters