These days the emergence of TV programmes like The Apprentice,Make Me a Million,Dragons Den,Badger or Bust and Tycoon has inspired a lot of people to consider starting up their own business.Most of these businesses start as a home based business.
The following areas of business are very attractive to home based businesses their main attraction being they can be run from home and do not require dedicated premises.They are as follows Ebay trading,Selling secondhand books online,Selling at fairs,mail order selling, multi-level marketing,Bed and breakfast,Event planning service,Staffing Agency and Telephone answering services.This list is by no means exhaustive but rather examples of the kinds of business suitable for operating from home.
Most of these people start their home based business on a part-time basis,that way they have their full time jobs to fall on if things do not go as planned.A lot of people start their businesses from their own homes.This helps to make savings as the cost of renting premises for the business is avoided.It also enables you to be at home a lot of the time which is very important especially for people who have children who require supervision.
A lot of people "test the waters" by working on their home based business part-time and then learn as they go along.They gradually make the shift from part-time to full time as the business progresses and takes root.
There are 9 key elements to consider when starting your business:
1.Choose the legal structure of your business homebased business.Do you want it to be a sole proprietor,joint partnership or public limited company also known as a limited liability company.
2.Find out if you would require any form of business license or permit for your home based business.Some businesses such as security guarding tend to require a permit.
3.Find out if you are allowed to have a business in your home by checking with your local authority or landlord/landlady if you are renting.
4.Find out if you will need any form of insurance for your business.Businesses such as care hire and delivery services tend to require insurance.
5.List all the equipment you would require for your business.At his point it is advisable to consider hiring or buying second hand equipent where necessary to save on costs.
6.How much money do you require to start your home based business and where is it coming from?Do you intend to use your own money,borrow from relatives or approach the banks.
7.Find out if you have to register immediately with the Tax Man (Internal Revenue Services) for your home based business or whether you have to wait till your turnover reaches a certain threshold level.
8.Research the market.Find out how many people there are especially in your local area interested in the proposed product or service your home based business would be offering. This is known as defining your market and identifying your potential customers. If after researching your market you are convinced that these people would be paying customers, then next step would be writing up a business plan for your home based business.
9.Write up a business plan.This is an outline of what your business goals,why you think it can be achieved, how your home based business will do it and what resources it will require to do it.The more detailed your plan is the better your chances of success.It should cover your start-up investment needs, your advertising plan, your production or service costs, your sales program, ,how much time will be allocated. At times over ambitious entrepreneurs "jump in" without a plan only to find out "they are out of their of their depth".It helps to layout everything in a plan before starting.
Once you have identified your market through market research and how you are going to reach them,you will have to bring togther all the resources required to run your home based business. I cannot overemphasise how important it is to have the capital and time required to run your homebased business.
The next step will be to implement your business plan.Whilst working according to your business plan you will have to regularly evaluate your business plan for any areas that may require tweaking to keep up with the times.It is important that you do not make any financial demands on your business for at least the first six months so that all income from the business will be channeled back into growing the business.
As your business grows you may consider outsourcing or hiring people to help you manage the workload.
Until my next posting Goodbye and Good Luck.
