Many successful businesses originally started out of a home office. Mary Kay and Apple are 2 well known companies that originally started inside a home office or garage. In recent years, starting a business from home has become a growing trend. Shows like "Shark Tank" have highlight individuals who start a businesses from home, but the show also highlights how important the correct planning actually is to gaining success.
Home businesses present plenty of benefits, but there are also pitfalls that can quickly turn a home business sour if not carefully avoided. We've collected 5 tips that will make starting your business from home a success!
- Know Your Market. Researching and understanding the business industry you are attempting to enter is the first step to success. Your research phase will help you form your business to best suit you, your audience, and your financial means. Many businesses fail due to poor planning or a poor understanding of the desired market. Networking is another great way to do your research. Connect with business owners within your desired industry to gain a better understanding of what you will be facing when you start a business from home.
- Incorporate Your Business. Incorporating your business is a crucial part of achieving success. This process designates the business as a separate entity from yourself. Through incorporation, you designate your business as a corporation or an LLC, and you can protect your personal assets, increase tax savings, and start raise capital.
- Create a Business Plan. A business plan is a great way to gain an understanding of whether or not the business you have chosen will be successful. Follow a business plan outline and carefully work through each step. Creating this business plan before you start a business from home will help you better understand your business model, goals, and finances before a problem arises.
- Hire a Professional for Taxation & Business Regulations. Understand the taxation rules and self-employment regulations at both national and state levels. Seek out a professional accountant to gain a better understanding of what paperwork you need to file and how this potential business will affect your taxes and tax bracket. Being educated and informed is half the battle.
- Set Up The Space. When you decide to start a business from home you have to be ready to delegate a work space. A garage, a home office, or even a basement or attic, are perfectly acceptable spaces to start a business. Set up the area for business purposes and business purposes only. This space has to be able to accommodate the business you are planning, so be mindful of equipment and resource needs before deciding on a space.
Making the decision to start a business from home can be incredibly rewarding and lucrative, if planning has been thorough and complete. If you decide to start a business from home in 2013, we hope these tips will help you along the way!