Thanks to technology, home based businesses are becoming hugely popular; in fact, home based businesses are the fastest growing business segments today, accounting for about half of the small businesses in the country. Whether you love your job or every day is a run-out-the-clock situation, you’ve probably kicked around the idea of becoming your own boss.
If so, you’re not alone. About 70 percent of worker’s share your dream of being self-employed, and a new home-based business starts about every 12 seconds. Between exploring popular network marketing companies, selling products online, and finding ways to capitalize on hobbies and interests, hundreds of thousands of people are looking for alternative ways to generate an income.
Wondering what it takes to turn your dream into a reality? We’ve put together a quick rundown of things to consider when starting your own business.
Think About Whether Your Home is a Good Option
Depending on your financial situation, home may be your only option, but unfortunately, that doesn’t make it a good one. Take into account factors like whether you have a place you can work from (even if it’s not necessarily a dedicated place), how psyched the other members of your household will be about this new endeavor, and whether your current renters or homeowners insurance policy will still provide sufficient coverage or if you need to add a rider.
Covering Your Legal Bases
We’re not here to give legal advice. However, depending on the type of business, you should explore registering your company, such as a Limited Liability Company, Sole proprietorship, Partnership, etc. Just because you are a home based business, does not mean you don’t need to protect yourself.
Figuring Out Your Money Situation
What’s the difference between an expensive hobby and an actual business? It’s all about the money. Get started on the right foot by setting up a bookkeeping system to keep track of expenses and income, and open a separate banking account and business credit card. Especially if you’ll be taking advantage of the home-based business tax deduction, you’re more likely to be audited by the IRS. Sure, that’s a pain, but if you have immaculate records, audits won’t be a big deal.
One of the biggest benefits of working from home is that you get to work from home. Interestingly enough, that’s also one of the biggest drawbacks of working from home. Initially, most home-based business owners play it pretty fast and loose with boundaries, working well into the wee hours of the morning and enduring constant interruptions throughout the day. While some of that can’t be avoided, especially if your household includes young children, let friends and family know that you have dedicated work hours and you really can’t be interrupted.
Regardless of the type of business, you’re running, one thing is necessary across the board: building connections. One of the easiest and most memorable ways to do that is by having business cards on hand and ready to be given out to potential clients. With Soundwave Media, you can create a business card that offers the ability to view video content, such as product videos, social media links, and current promotions.
Starting a home-based business isn’t for the faint of heart, but skipping the daily commute and working from home has become a reality for many. By committing to your own success and working through the many details of becoming your own boss, you can make it happen too.