Home Based Business

Things To Know When Starting A Home Business

Home Based Business Resources

Starting a home based business has become very appealing for a number of reasons. The cost of overhead (electricity, storing materials, internal operations) is low; you have complete control over how big or small you want your business and customer base to be, and your profits are coming directly to you.

Why Start A Home Based Business?

In today’s economy, combined with the personal and mobile technology available to us, having a physical storefront is not necessary in order to generate income. People spanning all industries, from consultants to realtors, small batch distillers, and even some franchise owners run home based businesses. Running a home based business eliminates the overhead expense of having to purchase or lease a physical establishment, as well as the insurance, permits, and other expenses that come with running a brick and mortar business.

You Are Not Bound By Location

Many brick and mortar businesses rely on their locations to draw in customers. In a heavy traffic area, like Times Square, for example, this can help to ensure steady sales. Now, not every business is located in such a heavily trafficked area. In less populated areas that do not have the benefits of being centers for tourism and commerce, brick and mortar businesses rely on traffic from people who live in the immediate area or the convenience of being close to neighboring towns. A home based business is not restricted by location. Many home based businesses deal with customers on a national and even global scale. Not being bound by or reliant on location gives home based businesses a huge advantage over other business models.

You Decide Your Schedule

Running a home based business means you do not have to be available from nine in the morning until nine at night, seven days a week. Many home based business owners work on a schedule that fits their lifestyle. This means business owners do not have to schedule employees or find someone to fill in for them while they go to personal appointments. A home based business offers entrepreneurs the benefit of putting in a many or as few hours as they would like. Just remember that a business is not a license to slack off. You still need to generate revenue to be successful.

Hiring Employees Is Not Always Necessary

Most home based businesses only require a computer with an internet connection and a phone line. Those are really the only equipment expenses needed to communicate with customers and make sales. Some operations, like a cleaning service, for example, may require you to hire staff to perform duties for customers while you take care of the accounting and client contracts from your home office. If you launch a home-based business that can be run by one person, you do not have to allocate a portion of your revenue to payroll. All earnings can be reinvested into your business, take care of inventory and supplies (if necessary) or it can go right into the bank.

You Are In Control

When running a large operation, mistakes can happen. Most times, the mistakes occur due to a miscommunication or an improperly trained employee. With a home based business, the chances of those errors are greatly reduced, because usually the owner and the workforces are one and the same. There are no office politics. No chain of command. No human resources issues. No scheduling conflicts. The best thing about running a home based business is that no one else can take credit for your achievements. Your successes and the accolades that follow are all yours.

Your Office Can Be Anywhere

Just because you run a home based business does not mean you are chained to a desk in your house. We live the digital age, with smartphones, tablets, and laptops. You can take your office with you, and run the business from the local park, a cafe, or even from your car during a leisurely drive. A home run business offers entrepreneurs freedom that cannot be had with a brick and mortar company. There is no early morning commute with a home based business. There are no unproductive meetings or team projects that no nowhere. There is no circling the business trying to find a decent parking spot. There is no idle chatter. No jockeying for a promotion. A home based business takes all the downsides of working in a store or office with other people and removes them so you can focus on your work and meet your goals.

Where To Start

Even though many expenses are reduced or even eliminated when launching a home-based business, there are still a few conventional steps which must be taken to get off on the right foot.

It is one thing to have an idea of what you want your home business to be, and it is another to commit it to writing. A business plan is much more than a document detailing your expectations, potential profits and growth, and how much starting capital you will require to get your home business off the ground. The Small Business Administration (SBA) and other financial institutes will tell you that, if your business is successful, or you need to borrow money for expansion or to upgrade equipment, then you will need a thorough business plan before any lenders will take your account into consideration. Remember that a business plan is not set in stone. When running your home based business, you will encounter situations which can end up delaying or shortening your projected time lines, as well as your cash flow. You should revisit your business plan every few months and make adjustments as necessary.
Every business must have a name registered, as well as a federal tax identification number. It does not matter if you are flipping houses or selling homemade cookies, the law is the law. However, registering a business name also opens up a number of opportunities. For instance, once your home based business is registered, your company will have its own credit ratings, which in turn offer multiple benefits. You can build up the credit ratings of your home based business to qualify for additional financing, such as loans when you want to expand operations. You can also use your business credit ratings to get business credit cards. Business credit cards typically have higher spending limits, and overall lower interest rates than personal lines of credit, which means you can buy supplies and materials, as well as other business purchases, without have to pay the total cost upfront with your vendors.
Even the smallest operations need start-up capital, and a home based business is no different. Some home based business owners opt to borrow money from friends and family to launch their operations. While this may seem like a viable option with terms and rates better than most banks, these can be rather tricky. Home based businesses, like any venture, usually take a while before they start turning a profit. This can place a strain on relationships with friends and family who do not understand how businesses work, and who expect to see an immediate return on their investments. Successful entrepreneurs with home based businesses will tell you that you should avoid financial transactions with friends and family. Similarly, you should never use personal finances to start a home based business. Starting a home based business – or any business for that matter – involves some amount of risk. There is no reason to jeopardize personal finances by using personal savings or credit cards to launch a home based business. Instead, emerging entrepreneurs should use SBA loans and other small business financing solutions to successfully launch a home based business.
Most people know that, when you start a home business, you have to register your company name, get a Tax Identification Number, a decide what kind of business you want to own (limited liability, S-corporation, partnership, etc.). But within your state, you may also need certain licenses or permits, depending upon the type of home business you are running, as well as adhering to local zoning laws within your town or city (some town require that certain businesses are run in non-residential buildings). Home business owners may also need to get extra insurance policies, depending on the operation of the company. On top of all that, there may be “green incentives” and guidelines to running an environmentally friendly home business operation.
Whether local or online, home business owners would do well to join a network of entrepreneurs. This allows you to learn from already established and experienced business owners, so you can avoid the pitfalls that home business owners often fall into when starting out. This network can also help you troubleshoot any obstacles you are running into, give you hints on how to make your home business more efficient to maximize profits while streamlining your operations, and possibly help you increase your customer base. In most cities, there are boards of small business owners who help one another – from lending advice to customer referrals. The added benefit is that you will get to keep your finger on the pulse of emerging businesses and how they might be able to work or partner with your own home business.
Depending on the type of home based business you launch, you may need things like raw materials, inventory, and supplies. You will need to figure out where to get the materials you need, and then talk with those vendors and suppliers to get the best prices possible. Some vendors and suppliers will extend lines of credit to small and home based business owners. This can be very beneficial, not only because it can keep expenses down, but because using the line of credit can improve your own business credit ratings. This means improved purchasing power, plus the ability to qualify for larger financing with better terms and rates, in case you need capital to expand your operation.
Many home business owners offer great products and services and can see a customer base willing to pay for those things, but many first-time business owners have little experience with running the back end of the company. Enrolling in courses, finding mentors, and joining a network of home business owners will help you get the training you need to run everything from inventory to logistics, marketing, re-investing profits for growth, and even financing your business for those long-term goals. Business training and certifications in your field of expertise make your home based business very attractive to potential customers, which in turn ensures steady and returning business for the long run.
Many home-based business owners do not have a background in accounting, and cannot afford to hire a full-time accountant to manage finances during the first stages of opening shop. It pays in the long run to either regularly consult with an accountant, take accounting courses, or invest in decent accounting software in order to ensure that your company is not leaking money as you set sail for success. You might also want to look at cloud accounting services for your home based business. Cloud-based accounting is more secure than storing information on your personal computer, and it has a low monthly subscription cost. You can also add options to your basic package, such as filing taxes, inventory tracking, budgeting, and a whole host of others to automate your home based business so you can focus on the important things. Not only can accounting training or software help you take stock of profits and losses, but it will help you plan and make goals on a monthly, quarterly, and yearly basis.

What Are The Best Home Based Businesses?

There are no “best” home based businesses to launch. There are thousands of home based businesses in every industry. While it may seem overwhelming to settle on the best home based business for you, we can at least give you some direction.

Monetizing Your Hobbies

What if you could generate revenue by doing those activities you love to engage in without it turning into something that seems like “a job?” Because we live in the digital age, millions of people are turning their hobbies and passions into home based businesses. Some people make things like handmade jewelry, costuming, perfumes, and even musical instruments and sell them through their own websites. Others leverage their know-how in various fields to help others by offering advice and tips by starting home based businesses as consultants. Think about what you really enjoy doing in your personal time, and how you could turn it into a home based business.

Offering Help In Your Field Of Expertise

We mentioned consulting in the last section about monetizing your hobbies, but many people are using their prior work and life experiences to become consultants. People who know how to organize things make very lucrative careers as consultants. When we say “organizing,” we mean more than just removing clutter from people’s houses. Organization consultants help people to manage their personal schedules to maximize their free time, and how to not get overwhelmed by work and personal obligations. There are others who have given up life in the office IT pool to become a computer, network, and storage consultants. Some IT consultants may stick to their immediate neighborhoods, help people in their town set up home computers and troubleshoot the latest and greatest gadgets. Others get hired on through contracts to work for major corporations. The big difference is that consultants usually pull down much higher rates than in-house employees because employers do not have to worry about paying for personal time, health benefits, or unemployment. Then there are life coaches, financial advisers, efficiency experts, and myriad other home based business ideas which can be structured around your particular field of expertise.

The Planet

As a whole, we have all become more environmentally aware over the past years. The government is offering a number of tax breaks to businesses that take the steps to move away from petroleum and coal as energy sources, and converting operations to handle alternatives, such as wind and solar. Unfortunately, not many businesses understand the tax incentives, nor do they know how to implement the required changes to “go green.” Environmentally conscious people can open a home based business  to help entrepreneurs and homeowners make the big switch to save money while gaining goodwill with their customers by being globally conscientious.

Writing

If you have a penchant for words, starting a home based business as a writer can be a very lucrative career move. The field of writing has diversified greatly from the traditional options of becoming an author or a journalist. Websites are in great need of fresh and well-researched content. Some people generate a healthy revenue by monetizing their blogs. Others use their experience as editors to help other writers perfect their techniques. Which brings us to the next great home based business idea, tutoring.

Tutoring

If you have the knowledge to share in a specific field, you can launch a home based business as a tutor. You have the option of consulting with students at your home, at a cafe, in the park, or even online. With schools raising their own standards, and universities deploying higher knowledge requirements, as well as adults continuing their education, tutors are in very high demand.

Open A Franchise

Franchises have come a long way over the years, and there are hundreds available to people who want to run a home based business. The great thing about franchises is that they have all of the groundwork laid out for you. Franchises provide branding, marketing materials, as well as training on how to launch, run, and grow your home based business. Additionally, franchises have a built-in support network. Unlike starting a business from scratch and trying to navigate uncharted waters, the support network offered by a franchise can help you with overcoming any obstacles, logistics problems, or anything else you need. Franchises are some of the most “turn key” business models you start from home. The best thing is that franchises are also very diverse, spanning practically every industry imaginable. There are franchises for helping people file taxes, medical transcription, IT support, lawn care, cleaning, tutoring, health care, vehicle detailing, pest control, and hundreds of others. The best thing to do is research the various home based franchises available, and reach out to the top five choices and discuss making them a reality with a franchise representative.

Business Finance

Most home business owners need to know the ins and outs of commercial finance – from loan application to the myriad forms of conventional and alternative lending methods. The Commercial Capital Training Group (CCTG) will give you the training and tools you need to not only run your own successful business but also help out other business owners by getting them the financing they need to reach their goals. With training from CCTG, you can help businesses and investors where banks cannot, and the income you receive from making these deals happen will surpass anything you would have received from previous employers. You will be making money on your terms, and building a client base that will allow for steady income (potentially six figures annually) and the financial independence you have always wanted. The Commercial Capital Training Group provides built-in training, the ability to launch a business of your own, and around the clock support from our team of experts, with over 75 years of combined experience. The best part is that you can tap into this nearly unlimited earning potential right from the comfort of your own home, helping other people launch businesses by facilitating the financial solutions they need and generating a healthy stream of revenue in the process.

If you would like to break away from the daily grind and embrace true financial independence on your own terms, contact the Commercial Capital Training Group today.

Home Based Business Resources