Many people think that working part-time or full-time at home is an attractive option, whether to earn extra income or start a new career. However, starting a home business is just like any other business. You are required to have careful planning and a big commitment. You have to plan a strategy, work out the details, and then put the plan into action. Fortunately, you can avoid some of the costs and difficulties (such as the cost of renting an office or having certain requirements to meet) by using your home as a business center.
Step
Part 1 of 3: Determining the Type of Business
Step 1. Evaluate your talents
Keep in mind, There is a big difference between talent and interest. Just because you're interested in a field doesn't mean you can turn it into a business. Think about your skills, or hobbies that you can do better than anyone else. Your business can also be based on professional skills that have been developed or learned.
Make sure the type of business you choose is something you are passionate about. You will spend a lot of time setting up and running the business so you should be able to tolerate this business
Step 2. Assess your financial needs
Even though starting a home business is more affordable than a regular business, you still need funds to start your business. When crafting a business idea, think about how much money it will take to purchase supplies, production equipment, or cover start-up costs. If you don't have a lot of savings, you can also get a loan, but this means you have to qualify for credit and be responsible for the credit taken, something that is quite difficult for a new business to do. Consider your funding options when setting up a home business.
Step 3. Know your competition
If you are planning to start a local business, look for other businesses that offer similar products or services in your city. You have to find out if there is still any business left for you. If you plan to work via the internet, the competition is already quite high. Therefore, you must find a way to differentiate yourself from other competitors.
In either case, it's a good idea to shop around and analyze competitors' pricing. If you can price below your competitors for the same product, you may be stealing their customers
Step 4. Understand your market needs
Listen to what people are saying and their needs in the area you live in. If anything they have to say catches your interest and talent, it can't hurt to give it a try. This applies to both local and online businesses. Any good business idea can fulfill a market need.
Step 5. Learn the laws of employment
If you are planning to hire employees or contract workers as part of a home business, of course you should be aware of applicable labor laws. This includes (but is not limited to) minimum wages, overtime incentives, required benefits, and other fair compensation regulations. you should use the services of a legal consultant to ensure that no law is violated.
Step 6. Consider some of the more general ideas
If no business ideas come to mind, think about some of the types of businesses you've seen and heard of. Some of the profitable home businesses include tutors, tax consultants, business coaching, counseling, marketing consulting, accounting, website design, interior design, dance instructors, newsletter services, proofreading services, and resume writing services. This home business idea requires only personal expertise instead of a big investment.
Most of these business ideas can also be done on the internet
Step 7. Consider your business workspace
If your business plans involve the production, storage, or shipping of products, chances are that you need a workbench. Think about the amount of space needed in your home to carry out your business activities. Do business activities affect other family members' spaces? Consider the space requirements and capabilities of your home before proceeding with setting up a home business.
Step 8. Decide on a name that reflects your business
Deciding on the right business name is one of the most important factors for your success. Consider avoiding names that are unique and cannot describe the goods or services you offer for a fledgling business. The first customer should be able to clearly know what you have to offer from the name.
- Look up your competitors' names to make sure you're not breaking trade name laws or choosing a name that's too similar to a competitor in your vicinity.
- Consider the length and spelling of your business name. Longer names may be harder to remember for many people. Meanwhile, the use of unusual words will make it difficult for some potential customers to quickly find information about your business on Yahoo or Google.
- Buy a domain name for your business as soon as possible. A domain is a web address name and extension for your future business website, which includes.com,.net, or.org. Domain names are often sold together with web hosting services. The business name you want isn't always available, but you can search for it at a domain registration service.
- Consider registering trade names and copyrights legally. That way, you can protect yourself from the theft of the business name that you have specified.
- Consider asking your friends for opinions to determine the best name for your business after you've found a few options.
Part 2 of 3: Planning a Business
Step 1. Find out if this business is profitable
What price are customers willing to pay? Are you able to receive income from the business? Many people look to astronomical numbers in the future until they can determine the profit that can be made. Make sure you consider the amount of time that can be devoted to the business and the amount of profit to return the time and money invested. In some cases, a great business idea on paper can be the opposite of reality.
For example, if you are good at baking cakes, and because your cake has a fancy design and an extraordinary size and taste, customers are willing to pay IDR 350,000 per cake. However, since it takes a long time to make this great cake, you can only make 1 cake per week. Thus, your profit is only IDR 1,400,000 per month minus production costs
Step 2. Create a business plan for your home business
This plan is your business blueprint. This plan can also help you remember things about your business that you didn't think of before and help determine what kind of start-up costs you will face. At a minimum, a business plan must have the following:
- A description of the company's market, objectives, and differentiation that sets it apart from other competitors.
- List of products or services offered and their prices.
- Market analysis of competitors and their prices.
- Marketing plan. How do you market this business?
Step 3. Check for legal barriers to your business
Some areas have certain laws and regulations for home businesses, and you should check them out before investing a lot of time and money in a business. Some areas only require a home business license for the owner. Ignoring the home business rules can destroy your business.
You should consider the neighbors and and the impact of the business on them. For example, your business is likely to make the area you live in crowded and possibly even noisier
Step 4. Find out if additional insurance is required
Visit a local insurance agent to determine your home business insurance needs. When starting a home business, you automatically expose yourself and your family members to various risks and you should get a guarantee before it's too late.
Part 3 of 3: Opening a Business
Step 1. Start investing in your home business
Before starting, there is often an investment to be made in your business infrastructure. This investment varies, depending on the type of business being run. For example, if you run a home printing business, you will need to purchase a professional printer and appropriate paper. If you run your business over the internet, we recommend increasing your computer and internet speed. The length of time spent loading pages can waste valuable time and decrease productivity.
Step 2. Organize your business into a legal entity
When starting a business, you have several options for determining the business structure. The simplest form is a sole proprietorship, where you as the owner are a legal entity of the business. In this case, you are required to have a TIN. However, if you plan to include partners or hire employees, you will need to manage the business as a separate entity such as a corporation. As such, you will need to establish your business as a business entity with the government and obtain a trade certificate.
The corporation also limits its liability for all losses suffered by the business
Step 3. Organize your workspace at home
In order to work effectively, you need a workspace in your home. If you run a local business, your home doubles as a marketing office. You need a separate area away from family members, pets, and other distractions. If possible, separate the work area as much as possible from your home. Physical separation will help to mentally separate your work from your home life. In addition, it also helps your home office tax deduction more objective.
Make sure your workspace and home business don't interfere with family life or bring new stress to the home
Step 4. Set up a business-only telephone and internet network
Almost all businesses require telephone contact with customers. To ensure that your landline is uninterrupted by customers, set up a dedicated telephone network for your business. It's also a good idea to use voicemail instead of an answering machine. This will look more professional in the eyes of customers. In addition, you should also add an internet connection that is fast enough to run a business. Adjust the cost to the contents of your pocket.
For example, if your business is in the video streaming business, it is required to have fast internet. However, if the internet is mostly used only for surfing or opening email, there's no need to pay a fortune for fast internet
Step 5. Get post office pox (PO BOX) for your business
This is especially important if you have business cards or will be interacting regularly by mail. PO BOX will look more professional in the eyes of customers..
Step 6. Launch your business
When all the preparations are done, open your business or website and serve your first customer. Your first customers could be friends or relatives. Don't forget, you won't know your business fully in its infancy. Entrepreneurs learn while running their business!
If your first customer is a friend or relative, make sure you get feedback and adjust the product or production process according to the suggestions and criticisms received
Step 7. Market your business
To increase your business customers, marketing needs to be done. This includes advertising, building a strong social media image, and other activities designed to attract customers. Your type of marketing should vary based on the type of customers you want to attract. If you run a local business, advertise your business on a local radio station or newspaper. If your business is run over the internet, sign up for Google AdWords or advertise your business on relevant websites.
Business marketing also includes building a brand, setting up a professional website, driving mass (traffic) to a business site with search engine optimization, and using promotional strategies, as well as various other marketing tactics
Step 8. Match the strategy and product as needed
Respond to your customers. You must develop a system or survey so that customers can rate their experience using your business product or service. Try to get as many perfect ratings as possible. All the criticism that continues to appear indicates that a change is needed in one aspect of the business.
Step 9. Build a trusted customer base
By tailoring your business to your customer's needs and continuing to deliver a satisfying product or service, you can get the best form of free marketing: word of mouth recommendations. Customers will recommend your business to their friends or family if they are completely satisfied with your service. therefore, your business will grow. You have to maintain customer loyalty and build a consistent income.
Tips
- When you start thinking about starting a home business, write down all the things that can be done with your skills and talents and then narrow it down until you find what you really want to do.
- Keep your regular job until you can make enough money consistently. Many home business owners leave their regular jobs when they have saved a year of profit.
Warning
- There are many scams out there that promise a lot of money and financial stability from a home business. Don't be fooled by this seduction. The best home businesses come from your own ideas, heart and hard work.
- Most home businesses don't taste success. This is a fact. There are several new home businesses that are very successful every year. You just work hard and do your best.
- Make sure you set a daily budget for AdWords and make sure your spending doesn't exceed that budget. Otherwise, you will regret it.
