Some aspects to be considered when starting a business include starting small and looking for ways to cut down costs while operating effectively. Starting a business from home helps you keep overhead costs down as well as other location-related expenses. Your home provides the best working space. This comes at little or no cost and can be an effective business base. So if you are thinking of starting a business and don’t have the funds to rent/buy a shop/office yet, here are 7-steps to starting your business from home.
Looking at the Garage-To-Fortune stories of early business endeavors of the richest man in the world, as he reveals how he first ran Amazon.com out of his garage in Bellevue, Washington, and the story of Larry Page and Sergey Brin, who launched Google from Susan Wojcicki’s garage.
So, whether it’s starting a business from your garage, basement, or dining room, here are 7-steps you can take towards starting your business from home.
STEPS TO STARTING
1) Decide on a successful Idea
This first step comes before even thinking about where to locate it. What kind of business do you intend to start from home? Does the business benefit from a work-from-home strategy? These are some questions you need to ask yourself.
“Home businesses are far more feasible than others” according to the SBA. “A business in the Information Industry has a 70% chance of being home-based. Closely followed by businesses in the construction industry at 88.2%” In deciding the kind of business you wish to start the following must be considered: skills possessed by the individual, research into the possibility of the business running from home, start-up costs & testing your ideas.
2) Write A Business Plan
It is only logical that you put your idea into perspective. How does your business idea look on paper? How feasible is it? Writing a business plan is time-consuming. Some people prefer to contract this process, thus saving time and energy for other things. But you should do it yourself, especially if you would be the one running the business. Writing a business plan would give you a better understanding of your business idea.
A business plan is essential to the potential growth and progression of your operations. And it contains all the information needed to prepare you to run your business from home.
Your business plan should include the following.
- An executive summary
- An overview of your business.
- A market analysis
- A description of your products or services.
- A marketing & sales plan.
- A financial plan & projections.
3) Choose A Name
As basic as this step sounds, it is a very important aspect of getting the business together. It is paramount to have a distinct yet simple business name. A name that customers can relate to, that sticks to their memory. A name that is not easy to forget. This should be the aim when naming your business. Your business name needs to resonate with the idea behind the business. Customers should be able to see the whole company from its name. Another criterion involved in naming your company is the availability of the name.
Some names may appear already taken by other companies, and consequently not available for registration. Your business name must not sound like or look even remotely identical to the name of another business. For example, if your business name is “Coca-Cola” it would not be registered due to its obvious resemblance to the business name “Coca-Cola”. Other conditions involve your business name not including state or federal terms. For online purposes picking an available domain name for your website is also essential.
4) Register Your Home Business
Right before you start the operation, you have to make sure you have taken every official step. Which includes registering your business with the federal government. This is done at the Corporate Affairs Commission and costs range from N25,000-N30,000. This is considered a reasonable price for federal backing on all business transactions.
This step sets you apart from other home businesses that are not official businesses since they are not registered. There are contracts, partnerships, or even transactions a business may be on the verge of securing would be halted by the lack of a company registration certificate. It is a necessity for every business.
5) Separate Your Business From Personal Finance
Every businessperson needs to remember that the business is a separate entity that should not be associated with personal problems. That is, aside from the fact that the house belongs to the person involved in the business. This scenario is most difficult for businesses that run from home because the businessperson is already in the comfort of personal space surrounded by all sorts of needs and probably, family members.
The business owner may then dip into the business coffers, and in the process, depleting funds that could go towards growing the business space. Keep in mind that your business is a separate entity and treat it as such. That way, the business would grow.
6) Get A Tax Identity Number (TIN)
Businesses are designed to somehow give back to society. Since the conception of the Federal-Business relationship, the best way to achieve this is via Taxes. Taxes are compulsory levies imposed on citizens/taxpayers to fund government spending. All businesses pay taxes, and home businesses are no exception.
Some can avoid paying taxes because the business probably wasn’t registered in the first place and is done from home, which does not attract the government’s attention. But a successful business also comes with the need to do the right thing, which pays off later in loads. For example, before a business owner can go into an exportation business, she/he must provide a Tax Identification Number. This also cuts across major business expansion schemes. You don’t want to have to now do something you should have done 2-years before in the 5th year of business. So, pay your taxes.
7) Set Up Your Office
Congratulations! You made it to where all start-up owners want to get to, setting up your workspace. Getting the other processes done should be fairly simple. This is easy since your home is probably already furnished and contains all necessary interior decoration. Setting up the office area is at the discretion of the businessperson.
Working from home is an interesting option and taking these steps gets you closer to running your business. So why not take these 7-steps in starting your business from home.