Are you preparing to start a home-based business? Whether your plan includes part-time or full-time work, there are several essential ingredients for building a profitable enterprise. There are other pieces to the success puzzle. You as the home-based entrepreneur must have a basic idea about what products or services you will offer. Keep in mind that home-based companies are strikingly similar to traditional organizations in a number of critical ways.
Unlike traditional organizations, at-home companies lack an office building and coworkers in proximity. However, just like traditional organizations, they need a ready source of funds, a potentially viable product, a private place to work, at least one functioning computer, a phone, and a regular schedule. How do you bring everything together and create a plan that suits your needs? Below are five of the most significant components of a profitable company that operates out of a personal residence.
Business Model and Product or Service
Step one is coming up with an idea for a product or service. It does not matter what it is if you learn about what you sell. It is wise to study the competition in order to get a clear idea of how other sellers operate their companies. What is your business model? Will you drop-ship items made by others, create your own merchandise, or offer an online service to customers? Nail down these detail before going any further with your business plan.
Sufficient Funding
Unless you have enough in savings to cover operational expenses for at least six months, consider applying for a small business loan. The benefit of borrowing this way is flexibility. Not only do home-based entrepreneurs borrow as much or as little as they need, but they opt for multiple loan programs, get coaching, plug into support networks, and hold online discussions with other business owners just like yourself. When shopping for small business loans, make sure your lender is committed to smaller enterprises and offers a wide range of loan products to them.
Office Space
Coffee shops and libraries are only temporary solutions to the space dilemma. Even if you reside in a studio apartment, it is crucial to designate a permanent area for work. If you share living quarters with others, consider using a locked room, a cubicle, or a remote corner of a basement or attic as your special spot. The goal is to organize a home office for maximum productivity. Additionally, you want a comfortable zone without disturbances from outside noises, phones, interruptions, children, or pets.
Schedule
Just because your job is not in a traditional office, do not operate without a daily schedule. A 9-to-5 routine is not necessary but aim to develop a 40-hour workweek with set daily sessions. Many home-based entrepreneurs who have the luxury of setting their own hours choose the four, 10-hour system.
An Excellent Computer Station
Always research computer requirements for any job you intend to take as a solo, home-based employee. If tech is not your thing, hire an IT expert to visit and make sure apps, memory capacity, video quality, and other features are up to par.
