There’s no denying that starting a business from your home is an excellent way to gauge the viability of your ideas. A home-based business enables you to keep your costs down as much as possible and grow your venture at a comfortable pace.
What’s more, another advantage of starting a business from home means that you can efficiently juggle your home and business lives. You are likely here reading this blog post today because it’s something you’ve put some serious consideration into doing.
But, what are the essential factors you need to keep in mind when starting a business from home? Take a look at the following seven points to give you the information and inspiration that you need:
1. Tax registration
When you’re ready to start trading, the first thing you need to do is register your business with your local tax authorities. Doing so ensures you get registered as self-employed and fill in tax returns when required.
You can register your business with a trading name, or you can use your name. In either case, you are still ultimately and personally responsible for the business.
Nobody likes to think about what could happen if a product or service somehow injured an individual – or worse. Should any of those rare but not impossible situations ever occur, your business could find itself embroiled in a bitter legal dispute.
To that end, it pays to have the right insurance cover for your venture. There is many an insurance broker that you can use to arrange cover for your business. You only need to determine which types of protection are relevant to your organisation.
3. A domain name, website, and email
By now, most entrepreneurs know that having an online presence is both essential and an excellent way of growing their businesses. As a new start-up business, you should also have an online presence!
All you need to do is purchase a domain name and set up a hosting package to ‘host’ your website and create email mailboxes. Don’t worry: the process is straightforward and you don’t need a computer science degree to set it all up. If you have finally familiarized yourself with your website, you can go and add new features such as an optimized checkout page to make transactions easier for your customers as well.
4. Payment card facilities
There was once a time where the process of having a machine to process card payments was both long-winded and expensive. Thankfully those days are in the past, thanks to innovative brands like Stripe and iZettle.
Your start-up home-based business can be up and running to accept card payments in a matter of minutes – not days, weeks, or months!
5. Accounts software
Selling vast volumes of products and services is ultimately the goal of your new enterprise. But, you must also keep clear records of the things that you buy and sell for tax purposes. To that end, it’s wise to invest in some easy-to-use accounts software for your business.
Many solutions allow you to record sales and expenses from the convenience of your smartphone. Many even allow you to scan in receipts as proof of purchase for the things you buy for your business.
You might feel tempted only to use your accounts software and file tax returns yourself. That can work out okay for you during the early stages of your business. However, as your business grows, you’ll likely find that you have little time to devote to book-keeping.
It makes sense to use the services of a book-keeper, even from your initial start-up stages. While that means having more expenses, the trade-off is you can devote more time to growing your business.
Another advantage of using a book-keeper is they can advise you on ways to save money on your tax bills.
7. Outsourced services
When you run a small-scale business from home, it’s unlikely you’ll have the resources to invest in things like manufacturing, production, and logistics. Even if you only sell services to clients, some costs are too much to bear at such an early stage.
The good news is there are many providers out there that offer outsourced services, especially for start-up home-based businesses. Examples of such services include transportation, sales, administration, and technical support.
It’s always an exciting time in anyone’s life starting a new business venture. But, it can also be a worrying one if you feel like you’ve forgotten an essential crucial start-up step!
Hopefully, the list above will have given you some information and inspiration to help you on your journey to entrepreneurialism.
This is a collaborative post.