Have you ever dreamed of chucking your day job so you could start a home-based business? Let’s face it, some days the idea of running a home-based business is more tempting than others. When your desk is overflowing and your boss’s face is turning purple, you might be looking for the nearest exit. But if you don’t know how to start a home-based business, you may be putting off your dreams in favor of the safety of a 9-to-5.
Instead of putting off your dreams of starting a home-based business, it might be time to investigate your options!
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If you’re ready to chuck your 9-to-5 but aren’t sure where to start, you’ve come to the right place! While there’s way more to cover than can fit inside one post, this is an overview to get you pointed in the right direction. Let’s dive in and take a look.
How to Start a Home-Based Business
Choose a Home-Based Business You Love
Perhaps you already know exactly what you want to do and you simply need to know the next step in your journey. If that’s you, skip to the next section.
But what if you know that you’re destined to be your own boss yet don’t know exactly what you want to do? You start by asking yourself a few questions:
- How much money do I need to make?
- What do I love to do?
- What skills do I have?
- What are my resources?
- Do I have the support system in place?
If you’re going to start a home-based business, you need to pick something you absolutely have a passion for. Why? Because there are going to be some might tough days in your future and you need to be motivated to keep going. If you need more ideas for choosing a work-at-home job you love, read here.
Do Your Research
Once you choose a home-based business, you need to dive deep into the rabbit hole of your niche. This may be the most critical phase of the entire process. Do NOT rush your research. You must know every aspect of what you’re getting into—even the ugly bits.
Here are some thought starters on what to research:
- Basics of running this particular type of business
- Tools you need
- How much financing you will need and where to get it
- Taxes, licensing, permits, and any other legal issues that pertain to your business
I’m not a lawyer and I don’t play one on the Internet, so you really need to do your research to make sure your home-based business is up to legal standards! Investigating all these issues now will pay off later. Truly.
It’s a great time to connect with others who are already running the type of business you’re interested in. Pick their brains and ask them how they got where they are and what they’d do differently. You’d be surprised how eager most people are to share what they’ve learned!
The research phase is also a good time to talk to your family/significant others and gather their input. Remember, the more you talk about it with your family, the more they will be invested in your success! Everyone needs to ride the success train together.
Write a Business Plan
Every successful business starts with a plan. A business plan will help you know whether you’re reaching the benchmarks you need to reach, or whether you need to step up your game. Besides, you won’t know if you’re successful if you don’t know where you’re going in the first place.
Also consider that if you’re home-based business is big enough that you need financing to get started, lenders may want to see a solid business plan to help them decide if you’re a good risk.
A business plan has several parts:
- Company description
- Market analysis
- Service or product
- Marketing plans
- Financial projections
More information can be found at the SBA. Keep in mind that what they show is for larger small businesses and may not be applicable to your situation as you research how to start a home-based business. However, the more details you have, the better chance you have to succeed.
Now the fun begins! No matter what home-based business you choose, you will likely need to take classes either online or in person. Do not skimp on your training. Good courses will help you get further, faster, and hopefully avoid the potholes that you really mess you up.
Plus, no one needs to reinvent the wheel. Right?
This is a good time to start implementing some of the steps you discovered you need to take during your research phase. It’s also a good time to glean more information from the connections you’ve (hopefully) already made.
One caution: don’t get so caught up in training/learning when you’re learning how to start a home-based business that you actually forget to implement. Yes, this happens. Don’t ask me how I know.
There is much more to starting a home-based business that is outside the scope of a single post. If you’re serious about launching a business of your own, here are more resources for you to investigate:
Home Based Business: How To Start A Home Based Starting Your Own Business: An How to Work From Home and Make Money: 10 Home-Based Business For DummiesHow to Start a Business: Startup Essentials-The The Complete Idiot’s Guide to Starting a Home
If I’ve said it before, I’ve said it a kabillion times: you cannot make money without spending some money, and a business built on a cheap foundation will show.
That doesn’t mean you have to go get all the bells and whistles just because so-and-so business has them. Use logic and pick your shots! Balance is key, and the more research you did, the better idea you have what you REALLY need…and what can wait.
Items you may need to budget for:
- Raw materials
Of course there are many more expenses depending on what you’re trying to accomplish. To learn more about budgeting for your home-based business, I’ve got a post for that!
It’s time for a grand-opening! You’ve done the work to learn how to start a home-based business, and it’s going to pay off. You might be planning a giant launch, or you might be easing into it as your time and budget allow—especially if you’re a one-person operation.
The key is to plan! Revisit the marketing section of your business plan and put it into practice. Of course, you’ve probably revised and made new plans along the way, being the nimble and savvy entrepreneur that you are!
If you’re ready to escape the drudgery of your current 9-to-5 in favor of starting a home-based business, more power to you! It’s better to take your chances now than to put it off and miss your opportunity.
Be smart, be savvy, but most of all BE BOLD! We get one shot at life, and it’s time to make the most of it.
Are you ready to start a home-based business, or do you have a side-hustle? Or do you prefer working a steady 9-to-5?