If you are thinking of setting up or have already set up a home based business then you need to read on. So many people ignore or are unaware of the legal requirements involved in setting up a business from home. There will be many questions to ask yourself and an enormous amount of paperwork for you to complete.
There are some tips for businesses, for those who are starting life on a small budget but have very big ideas for their growth. Is running a home business right for you? This is a huge decision for anyone. Whether you are keeping the security of your full time employment when you build your business or client base, you have to be sure that you can commit your time and resources to growing your business. You have to ask yourself about motivation to start it, organize your time well and ignore home distractions. Think about earning money from something you enjoy. If you have trained as a computer programmer, but always hated it then setting up in business in the same industry will be very hard work for you and unlikely to succeed.
Market research
Market research isn’t expensive or fancy and you can carry it out yourself.
Once you have a couple of ideas do some market research. Don’t be tempted to just ask friends and family as they will want to encourage your new venture and you need objective data. Get the hard facts and figures on your future business: by whom and what exactly are producing within the current market. Lack of market research which involves doing some serious competitor research (viewing accounts etc) shows up in business survival statistics time and time again. Whatever you forecast as potential sales will be realized into actual earnings over time so bear this in mind when you are looking at retiring in the next year. Keep it real and modest in your start up phase. There are some back bedroom enterprises earning hundreds of thousands but they did not do it in year one or two.
Start up costs
Don’t underestimate these. It will cost something to set up in your own home even the most modest enterprise. You will have to inform your insurers. Potentially take out special insurance to cover you, your business and the equipment you buy and you will also have costs incurred in getting your business online.