6 Essential Steps for Starting a Home Business

If there is one positive thing we can say about the last-year outbreak of COVID-19 that would be that the concepts of home businesses have proved their concept on the largest possible scale. Only recently, the idea of home businesses was novel. Now, when a large portion of the global industry has been moved home, we can see a number of home-based gigs growing faster than ever. What’s even more encouraging is the recent research that says that 70% of these organizations succeed for at least three years, compared to 29% outside the home-business market.

So, if you have ever planned to start your home-based gig, the circumstances are better than ever. Now, let’s see how to do that triumphantly.

Refine your business idea

Every success story starts with a good idea. But, the first draft of anything rarely makes a success story. So, be aware that your initial thoughts will need to be refined. One of the best ways is to streamline the concept until you are able to describe the idea in one simple sentence. Now, share those thoughts with as many people as possible and survey your target market to see how they hold up. The next step you should take is to create the mind maps that will explore all aspects of the original idea in greater detail and then hopefully create a prototype you will test with a select group of people.

Create a detailed business plan

Running a business at home doesn’t mean you can't benefit from good practices employed elsewhere in the business world. In this case, we are referring to creating a detailed business plan that will sum up the mission statement of your business, outline its long-term goals and financing options and give you a reference point you can use to track your progress and make eventual course corrections. If you are unsure how to approach this document, you can find a lot of useful free templates that should provide info about the topics you need to cover and how to do that most efficiently.

Secure a stable cash flow

Even though running a company from the comfort of your home considerably cuts your operating costs the first couple of months after the launch can be a pretty bumpy period. One of the biggest problems is definitely a sketchy cash flow you will need to deal with until you secure a stable customer base and start doing repeat business. One of the easiest solutions to this problem can be found in the debtor finance services that allow you to raise short-term funds and quickly cover the immediate expenses and pending invoices without having to commit to long-term loans and crippling interest rates.

Check on any legal requirements

Home-based companies need to abide by local and state legal requirements just like all other small and medium businesses so be sure to follow these regulations with all due diligence. Now, these regulations will most definitely vary depending on the state or the country you live in, but in most cases, you will need to cover the following steps:

• Make a decision on the formal structure (sole proprietorship, LLC, or corporation)

• Register business name

• Apply for a (Federal) tax ID number

• Obtain business permits and licenses

• Protect the business with insurance

• Open a business bank account

• Keep the business and personal finances separate

Come up with a viable marketing plan

No matter how your business idea might be viable it will fall flat upon launch if you don't manage to reach enough early adopters. That is why you need to put a lot of effort into creating a comprehensive and effective marketing plan. These documents typically include:

• An overview of your marketing goals

• Description of your intended customer pool

• Important metrics you are going to track along the way

• A timeline for reaching specific milestones

Use frugal and effective marketing strategies

As for the concrete marketing strategies, in this day and age, a professional website and strong social media presence are an absolute must. The same goes for the local SEO that is absolutely necessary for cracking the local markets. However, the local nature of your company will also give you much freedom to network and do PR in person. Referral programs and discounts for early adopters are also a very good way to generate positive buzz early on. Last but not least, creative guerilla marketing can also bring a lot of people knocking at your door.

So, there you have it – a short roadmap for starting your first home-based gig. Of course, putting these concepts into reality will take a lot of time and effort, but if you manage to push it to the end, success will surely follow. The circumstances are right – now it's up to you to make the move.