How to Start a Home Business
Home-based business is the fastest growing business sector today thanks to technological progress.
Looking down on options of working from home, especially by the breadwinner of the family, is a thing of the past. Using a spare study in the house and turning it into an office space to work in is gaining popularity. It makes you your own boss and allows you to set your own work timings. This trend of telecommuting springs from the surge in technology.
To get your home business started off the right way, here are some of the things you need to consider:
Getting a permit or license: Some municipalities require you to get a permit to run a home-based business. So one of the first things to do is to check with the authorities and get the required permission.
Insurance: Homeowners’ insurance may not cover home-based businesses. A rider to cover your business assets is a viable solution. Speak to your advisor and zero in on the right option.
Discuss legalities: Typically, a home-based business is a sole proprietorship and requires no formal legal documentation. However, discuss it with your tax consultant and consider other possibilities like make it a limited company if it gets you additional benefits.
Keep it professional: Set up a proper bookkeeping system for the income and expenditure in the business. Keep personal and business expenses separate, using a separate bank account and credit card. Home-based businesses are audited more frequently so keep everything in impeccable order.
Pay attention to security: It is a good idea to rent a postbox for your business mails. This will keep personal and business mails separate. It will also act as a security measure, especially if you are going to be alone all day.
Make it business-like: Devote a space for your home business. The work area should be exclusive for your work-related appliances like your computer and other office equipment. There should be no room for children’s toys, piles of newspapers and any other personal stuff in your work area. Soundproofing is important too as no sounds of street traffic, screaming children or barking dogs should interfere with your interactions with clients.
Establish work boundaries: Just because you are working from home does not mean that your time is not official. Family and friends should acknowledge this fact and respect it.
Be committed: Opportunities for distractions and indiscipline are obviously more when you work from home. Commitment to your work and strict adherence to a work culture will not just bring in work satisfaction at the end of the day but profits as well.