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Last Updated on: April 6, 2021 by Joseph Muriithi
Do you understand the unique needs of your small to medium-sized business? That’s easy when you work with experts like our consultants at Idea to Plan. But what about figuring out the steps you need to take to start a brand new home-based business? Well, that can be simple too, especially when you have guidance gathered from seasoned entrepreneurs and experts. Here are 5 steps to start a successful home-based business.
First You Need a Good Idea
Every successful business starts with an idea. If you’re not sure what type of home-based business to start, spend some time brainstorming about your skills and interests. For instance, if you love spending time outside and taking care of plants, a landscaping business could be a good fit. There are also several niche landscape businesses to choose from too.
Not into landscaping? That’s okay because there are countless other ideas for starting a successful and thriving business out of your home. These suggestions include freelancing, photography, providing childcare, selling real estate and planning special events.
Then You Need a Solid Plan
Having a brilliant business idea is one thing. Bringing that idea to fruition can take a lot of hard work and effort. It also requires careful planning. Think of your business plan as a roadmap to your future success, complete with alternate routes and pit stops along the way.
Writing a business plan from scratch can be tricky, and honestly, this isn’t recommended. Instead, look into professional services like those offered by Idea to Plan. Their services can be helpful whether you need to write plans for a brand new business or even if you need to rework your goals and plans for an existing small business.
You Also May Need an LLC
Did you include “set up an LLC” in your business plans? If not, you should think about adding this all-important step. First of all, using a formation service to register your LLC is effortless and quick. Second, doing so online will save your business some serious cash. Last but not least, working under an LLC will provide protections and savings for your new venture.
If you need to hire employees or set your business up under a different entity, you may also want to figure out if you will need an EIN from the IRS. Also known as a tax ID number, this can be crucial even for LLC’s, since some businesses need an EIN to work with you.
You’ll Definitely Need an Office
Working from a cafe or your coffee table is all well and good when you’re first starting a business. If you want to get serious about helping that business succeed, however, you are going to need your own office. Thankfully, if you’re working solo, you don’t have to spend a fortune on a rental. You can simply carve out some dedicated space where you can focus and work in your home.
On a related note, you should also know the in’s and out’s of the home office credit when it comes to your taxes. It’s a surprisingly tricky deduction that tends to trip new home-based business owners up. For self-employed folks, a space meets IRS requirements if it is:
- Regularly and exclusively used for business.
- The principal place of business
Finally, You’ll Need Some Clients
Of course, you need customers in order to run a successful home-based business. You know this already, but what you may not know is how to attract those customers without spending a small fortune on advertising. Your first step should be to identify a target group of potential customers. Then you can focus the rest of your marketing steps on this niche group.
There’s a lot that goes into planning and running a home-based business. But the must-have steps above will at least get you off to the right start. Put some time into your idea and planning, and you will have less to stress about later on. If you need help with planning, marketing or any other strategic part of your new business, you also don’t have to go it alone.
Need a Business Plan Written for Your Start-up or Business Idea?
Idea to Plan can help you create a business plan that will meet all your Business, Bank or Investor requirements. Contact us today by booking a free consultation below.