Did you know that some of the most successful businesses were started in someone’s home with little to no money? Amazon, Apple, Spanx, Google, Microsoft, Disney– these are just a few companies that started from the humble surroundings of a home or garage. You don’t need a lot of money or a fancy office to start your own business. These founders were just average Joes, trying to figure it all out.
So how do you start a business from home and make a full-time income? There are several things you need to consider before starting your home-based business and I have compiled a list of 8 tips that will help you succeed.
But before we dig in, I want to emphasize that this post is not about building your MLM business. This post is about starting your own home-based business from scratch. If you are thinking about starting an MLM business then check out my post What You Need to Know about Multi-Level Marketing. There are some great things to consider before becoming involved in MLM.
Alright, lets talk about what makes a home business a success. The best way is learning from those that have already done it. Here are 8 tips for starting a successful home-based business.
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1. Start with an Idea
Sounds simple right? Think of a great idea and then run with it. But not so fast. An idea isn’t great until it’s proven. If you have an idea for your home business then you need to research and research and then research some more. Is it something that people want, need, like? Is there a demand for it? What is the competition and how can you make it better? These are just a few of things you need to think of before you get started with your home business.
Things to do before you start:
- Research the market – is there demand? What would people pay for the product/service?
- Talk to your friends, family and potential clients – the key is to listen to those around you. What are they telling you? Write down their advice. You don’t have to take it to heart but understand what others are saying to you.
- Know your target audience – who are you selling to? What do they need, want, like
- Are you passionate enough about it? If you plan to do this for long enough to generate some profit then you need to love your idea.
2. Create a Plan
Every business whether home-based or not needs some sort of written plan. This is not something you can skip and then expect to succeed. A business plan is like a roadmap, it tells you what you need, where you plan to go and how you will get there.
Business plans can be both formal (usually required to secure funding) or informal. For more information on the type of business plan that would best suit your needs, check out this article from Forbes – Business Plan Template: A Step by Step Guide for Entrepreneurs.
Even if you don’t require outside funding for your business you still need to start with a plan. Your plan will give you direction and help you stay on task. It is much easier to keep motivated and on task if you have a guide to follow.
Related: How to Become Debt Free
3. Create a Schedule
While working at home gives you flexibility and allows you to set your own work hours, you should still implement a daily schedule to keep you on track. Without a schedule it is easy to get caught up in other daily activities, putting your home business on the back burner.
To figure out what works for you, determine what the best hours are during the day or evening and try it out. Set up a quiet space and let others around you know that these are your work hours. You may need to tweak your hours a little until you come up with a schedule that works for you.
4. Get Organized
Starting a home-based business and becoming your own boss means that the pressure of keeping your business well managed is up to you. Keeping yourself organized is going to be instrumental in keeping your business on track.
Organizing your business starts with your work space. If you are trying to create a successful home-based business then your immediate work area should be tidy and well planned out. Keep papers organized in one place so that you can easily find them. This may mean using baskets, filing cabinets and other practical solutions to keep your documents organized.
Keep track of receipts, bills and invoices. It is easy to let your desk or work area become cluttered with papers, receipts and everything in between. Organize a space for each of these items so that you know where they are. It is especially important for keep track of all your receipts for tax purposes.
The more organized you are the less time you will spend trying to find things. Here is a great business planner that can help you organize your business and keep you on track!
5. Keep Your Costs Low
Launching your home-based business will have some expenses, however, these expenses should be kept to a minimum. You will need to start a budget for your business to keep track of your expenses.
Keeping costs low will help you get ahead in the long run. Don’t stock up on inventory in the hopes of selling it. Keeping things like inventory, equipment and other start up costs as low as possible will keep you afloat longer and decrease your business’ debt.
While it may be exciting to start purchasing new things for your new home office and get into that business groove, wait until you are actually making a profit. Only purchase what is absolutely necessary to get your business going.
To help you keep your overhead low, check out these tips from businessknowhow.com. These are great tips for every new business owner to implement and can even help those seasoned business owners find new ways to save!
Related: 8 Ways To Make Money From Home
6. Network
Most entrepreneurs will tell you that networking is critical to becoming successful in the business world. Just because your business is run from the comfort of home does NOT mean that you can afford to skip this very important step.
Networking involves mingling and getting to know other people that are in your line of work – including other business owners, suppliers and entrepreneurs. You want to build a great network of people that you can learn from and form a relationship that is mutually beneficial for you and your business.
There are multiple networking strategies but finding the one that best suits you and your business is something you need to focus on. If you are a blogger then reaching out to other bloggers is one such strategy. Commenting on their blog posts, asking questions, attending conferences and meeting other bloggers – these are all great networking strategies.
Focus on ways you can create relationships with those in your same line of business. You want to continuously work at creating great business relationships and learn as much as you can from those who have gone through the process.
Related: Money Saving Tips for 2020
7. Build Your Brand
Starting a business requires more than just creating a name, logo and advertising. You need to build your brand. With so many businesses competing against each other it is important to stand out amongst the crowd with your own unique identity.
Just like people have a personality, so does your brand. Your brand should represent the qualities that your business stands for. If you want to be known as a company that is honest, driven and consistent then you want to build your brand to represent those qualities. Use language, logos and designs that will tell your audience what you are about. Be consistent in presenting this image so that your audience knows what you represent.
For an excellent guide on how to create your brand, check out How to Develop a Unique (& Memorable) Brand Identity in 2020.
8. Keep Learning
Even if you are an expert in your particular business field, you should never stop learning. The most successful entrepreneurs are constantly learning, adapting and improving their business model. You will never know everything, and the more knowledge you have, the more likely you are to succeed.
Starting a home-based business from scratch means that you are going to have to be the expert in multiple fields. Large established corporations are able to hire experts in each of those fields but as a start-up business you will have to adapt to multiple roles. This means you need to learn about finances, organization, design, marketing and everything in between.
Don’t assume that you know everything but rather continue to learn so that your business can succeed. Read books, take courses and apply what you are learning to your business. Networking will be invaluable at this time also. The more you learn the further you will succeed.
I hope these tips were helpful and that your business is a great success! The most successful entrepreneurs are those who keep learning, adapting and stay motivated. If you are looking to start a new home-based business then start small and scale wisely. If you are looking for some home-based business ideas then check out my post The Best Home-Based Business Ideas You Can Start Today.