Advertising Disclosure: Marketing Success Review may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links on this website. There is no expense to you.
According to MarketWatch, about 54% of working Americans focus on side hustles or small businesses and freelancing to plan for savings and emergencies and create passive income for normal expenses and planning for the future. The majority of this number is comprised of 71% of Gen Z and 68% of Millennials.
Although launching a business can be exciting, you can easily become overwhelmed without proper planning. Starting a business from your home is like starting any business with one exception. You won’t need to lease commercial space.
If you’re thinking about starting a home-based business, you probably already know the type of business you plan to launch. If not, the first step is to identify your concept. If you have an idea, fine-tune it before launching your home-based business.
What does it take to start an HBB?
Here’s how you should proceed to get your freelance venture or small business up and running:
1. Choose a business concept that aligns with your interests, career background, or newly developed skills.
2. Outline your strategy and create a business plan.
3. Be disciplined and set SMART (specific, measurable, achievable, relevant, time-bound) goals toward achieving your long-term goal.
4. Set up a dedicated workspace and prepare all your essential remote working tools, software, etc.
5. Build your brand identity and expand it through your online presence across social media platforms, and visibility on Google using your website, and through email marketing channels.
6. Before fully launching, prepare to track your finances and business banking.
7. Test your idea on a small group of people, gather feedback, and fine-tune your business model, service, or product offering.
8. Running a business all on your own can be isolating, and mentally and emotionally challenging. Focus on ways to maintain work-life balance and a network with others while operating your business from home.
9. Constantly learn and improve, and as your business picks up find methods to work smarter instead of harder and to shorten hours.
In a nutshell, this is what it takes to start a home-based business.
Starting a home-based business can be exciting and rewarding, although there will be challenges as with anything new.
What are the advantages of owning a home-based business?
Some advantages of owning a home-based business:
No Commuting
No Commuting is the most obvious one, as it saves time and bus fare or car expenses unless you have to travel to visit customers.
Lower Overhead
Since you won’t have to buy or rent business space elsewhere or maintain a separate office, you’ll probably only have the cost of business licenses and taxes.
Tax Advantages
Check with your Chamber of Commerce for tax advantages.
Operating a home-based business can be a way to recover your business expenses and sometimes reduce the amount of income tax you have to pay. To qualify for a reduction in income taxes, your office space area needs to pass the “exclusive use” test, meaning you must be able to show that a part of your home is your primary place of business and is used regularly and exclusively for conducting business.
Family Time
If you have children, operating a home-based business can allow you more flexibility with child care and more time to spend with family.
When your children are old enough, you can legally employ them in your business, as long as you follow the rules. There are certain restrictions, especially for children under the age of 18.
Always consult with an attorney before taking steps to employ your children in your business so that you can ensure compliance with all federal, state, and local regulations, which may vary greatly depending on locality.
What are the disadvantages of owning a home-based business?
An HBB is not for everyone; there are some disadvantages:
Municipalities regulate home-based businesses, and particular neighborhoods may have agreements against them. If you’re renting, landlords tend not to be home-based business-friendly. Might Not Work for You
A home-based business might not work for you, even if allowed where you live. Signage, parking, and the need for home-based insurance might make running a home-based business a bad idea. Conflict can be created between other tenants and your landlord who may be irritated at the non-resident traffic.
Isolation
Countless people, who run home-based businesses, suffer from feelings of isolation and being out of the loop. This can be particularly intense for people who have spent much of their career in highly collaborative office areas and suddenly have no one to talk to when they switch to an entirely home-based business career.
Interferes with Family life
Some people find that running a home-based business causes a conflict in their family life. They may find that running a business out of the home means that business needs are regularly taking away family time. This blurring of the lines between home and business means they never feel off the clock even after hours.
Starting a home-based business provides you with a unique opportunity to grow at your own pace, achieve the seemingly impossible in your career, and work flexibly at the same time. It allows strong potential for significant professional growth.
If after performing due diligence and research you decide you have what it takes to start a home-based business, use this information to get started today.
What it Takes to Start a Home-Based Business
by Rahimah Sultan
Advertising Disclosure: Marketing Success Review may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links on this website. There is no expense to you.
According to MarketWatch, about 54% of working Americans focus on side hustles or small businesses and freelancing to plan for savings and emergencies and create passive income for normal expenses and planning for the future. The majority of this number is comprised of 71% of Gen Z and 68% of Millennials.
Although launching a business can be exciting, you can easily become overwhelmed without proper planning. Starting a business from your home is like starting any business with one exception. You won’t need to lease commercial space.
If you’re thinking about starting a home-based business, you probably already know the type of business you plan to launch. If not, the first step is to identify your concept. If you have an idea, fine-tune it before launching your home-based business.
What does it take to start an HBB?
Here’s how you should proceed to get your freelance venture or small business up and running:
1. Choose a business concept that aligns with your interests, career background, or newly developed skills.
2. Outline your strategy and create a business plan.
3. Be disciplined and set SMART (specific, measurable, achievable, relevant, time-bound) goals toward achieving your long-term goal.
4. Set up a dedicated workspace and prepare all your essential remote working tools, software, etc.
5. Build your brand identity and expand it through your online presence across social media platforms, and visibility on Google using your website, and through email marketing channels.
6. Before fully launching, prepare to track your finances and business banking.
7. Test your idea on a small group of people, gather feedback, and fine-tune your business model, service, or product offering.
8. Running a business all on your own can be isolating, and mentally and emotionally challenging. Focus on ways to maintain work-life balance and a network with others while operating your business from home.
9. Constantly learn and improve, and as your business picks up find methods to work smarter instead of harder and to shorten hours.
In a nutshell, this is what it takes to start a home-based business.
Starting a home-based business can be exciting and rewarding, although there will be challenges as with anything new.
What are the advantages of owning a home-based business?
Some advantages of owning a home-based business:
No Commuting
No Commuting is the most obvious one, as it saves time and bus fare or car expenses unless you have to travel to visit customers.
Lower Overhead
Since you won’t have to buy or rent business space elsewhere or maintain a separate office, you’ll probably only have the cost of business licenses and taxes.
Tax Advantages
Check with your Chamber of Commerce for tax advantages.
Operating a home-based business can be a way to recover your business expenses and sometimes reduce the amount of income tax you have to pay. To qualify for a reduction in income taxes, your office space area needs to pass the “exclusive use” test, meaning you must be able to show that a part of your home is your primary place of business and is used regularly and exclusively for conducting business.
Family Time
If you have children, operating a home-based business can allow you more flexibility with child care and more time to spend with family.
When your children are old enough, you can legally employ them in your business, as long as you follow the rules. There are certain restrictions, especially for children under the age of 18.
Always consult with an attorney before taking steps to employ your children in your business so that you can ensure compliance with all federal, state, and local regulations, which may vary greatly depending on locality.
What are the disadvantages of owning a home-based business?
An HBB is not for everyone; there are some disadvantages:
Municipalities regulate home-based businesses, and particular neighborhoods may have agreements against them. If you’re renting, landlords tend not to be home-based business-friendly.
Might Not Work for You
A home-based business might not work for you, even if allowed where you live. Signage, parking, and the need for home-based insurance might make running a home-based business a bad idea. Conflict can be created between other tenants and your landlord who may be irritated at the non-resident traffic.
Isolation
Countless people, who run home-based businesses, suffer from feelings of isolation and being out of the loop. This can be particularly intense for people who have spent much of their career in highly collaborative office areas and suddenly have no one to talk to when they switch to an entirely home-based business career.
Interferes with Family life
Some people find that running a home-based business causes a conflict in their family life. They may find that running a business out of the home means that business needs are regularly taking away family time. This blurring of the lines between home and business means they never feel off the clock even after hours.
Starting a home-based business provides you with a unique opportunity to grow at your own pace, achieve the seemingly impossible in your career, and work flexibly at the same time. It allows strong potential for significant professional growth.
If after performing due diligence and research you decide you have what it takes to start a home-based business, use this information to get started today.
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