Have you ever wanted to escape your 9-to-5 office job to pursue an entrepreneurial dream but weren’t sure where to start? You’re not alone. A survey by VistaPrint found that 62% of Americans want to be their own boss, but only 14% believe they can actually make it happen.
Starting a business can be overwhelming, but there’s no need to be intimidated. There are more resources available than ever to help entrepreneurs succeed, and you can start right away from the comfort of your own home.
More and more people are starting a business from home. In fact, research from the Global Entrepreneurship Monitor found that 69% of businesses in the U.S are home-based.
There are many benefits to having a home-based business such as low overhead costs, flexible schedules, and a better work-life balance. So, are you ready to learn how to make it happen? Here are 10 simple steps you can take to launch a business from home:
- Start with a business idea. What do you want to do? Does your product or service address a specific need with a market or industry? In general, a great business idea comes from focusing on what you’re good at and what you enjoy doing. You’re going to be spending a lot of time on this new business venture, so make sure it’s something you’re passionate and knowledgeable about. Once you’ve formed your idea, it’s important to put it on paper by writing a business plan.
- Know your prospective customers or clients. You may think you have a brilliant idea, but that doesn’t mean people will buy it. It’s essential to identify your target market. You need to determine the group of people who need your product or service. Defining your target market is crucial to helping you measure the potential demand for your product or service. When researching your audience take a look at their age, occupation, gender, location, and income. This will help you form a marketing strategy down the line.
- Know what you’re up against. No matter what industry you’re in it’s likely there’s some stiff competition. It’s important to understand what you’re competitors are doing so you can make your business stand out from the crowd. A few clicks online can usually give you a lot of information about a competitor. Take a look at their website and social media profiles, what do you think they’re doing right? What would you do differently or improve?
- Determine how you can add value. You’re bound to fail if you offer a product or service that is exactly the same as your competitors. Leverage your knowledge of the market to come up with something unique. How can you improve an existing solution? What can you do to offer a high-quality product or service that’s cheaper or simpler than other offerings?
- Put your idea to the test. You won’t really know if your idea is business-worthy until you test it. So, before quitting your day job try transitioning to something part-time first and use your free time to evaluate the income-generating capacity of your idea. Try inviting influencers or bloggers to use your product or service, giving your business an opportunity to be introduced to a larger audience. You can also join local events, trade shows, and festivals to showcase your business and get direct feedback from potential customers.
- Set a budget and get financing. Do you need to renovate a part of your home to turn it into an office? What equipment will you need? How much can you spend on marketing campaigns? Running a business inevitably costs money so layout the essential items you need right away and how much they’ll cost. Once you have a budget, there are several ways to finance your operation. These include personal loans, bank loans, and business credit cards.
- Choose a business structure. Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Company, and Corporations are just some of the options to choose from when registering your business. Each has its share of advantages and disadvantages and regulation may vary by state, so do your research to select the best structure that suits your needs.
- Get the right insurance. Insurance is an essential investment in the future of your company. Commercial insurance will protect your business from risks such as injury, property damage, or financial losses. Even when operating out of your home you may need commercial insurance since many homeowner’s policies will not cover property or damages related to running a business. Don’t let your hard work and investments go to waste, check with your insurance provider to make sure you’re adequately covered.
- Promote your product or service. Finally, it’s time to launch your business. Now you need to promote it. You can use a variety of marketing strategies including word-of-mouth, writing a blog, social media advertising, and search engine marketing.
Starting a business from home is both rewarding and challenging. It takes a lot of hard work and research, but if done successfully you’ll find it’s worth it. Remember, even Apple got its start in a garage so, who knows, your home business could be the next big thing. Following these tips will definitely help put you on the road to success.
