Starting a business from home is an exciting venture that can help you achieve your financial goals and lifestyle.
But it can also be intimidating if you don’t have a plan.
In this article, you’ll learn what it takes to start a small business at home and the actionable steps you can take to ensure a smooth launch for your business.
Below you’ll find 9 steps on how to start a business from home and how doola can help you achieve your goals.
1. Brainstorm Business Ideas
Do you know what skills and interests you have and how you can best use them to create a successful business?
These are some of the questions you can ask yourself when brainstorming business ideas. You may also want to research current trends in the market to make sure your business is viable.
Asking yourself what you’re passionate about and how you can monetize those visions is a great place to start, so let’s break down some of the main ways you can brainstorm business ideas.
What skills do you have?
Every person has strengths and weaknesses. And everyone also learns differently. So entering an industry in which you have no prior knowledge would be a tough sell. So it’s best to consider the areas in which you have experience and how you can leverage that as you scale your business.
What are your interests?
Passion is everything. That’s why when choosing a business idea, it’s critical that you know what you are passionate about. If you do not love what you do, it will be difficult to get excited about it every day. Therefore, it is important that you make a list of the things that really fuel your passion and interests.
Is your idea trending?
Another thing to consider when brainstorming a business idea is whether it’s popular or not. For example, if you go into business making robot figurines, you’d want to know if there’s a market for that. So it’s best to take the time and research if there are enough people interested in your idea that you can sell to. Otherwise, your financial goals may not align with your initial business ideas.
There are many other factors when it comes to choosing a business idea and brainstorming what may or may not work. But these are some important questions you should ask yourself when starting a business from home.
2. Research The Industry
Once you have decided on a business idea, research the industry to make sure it is a viable market.
You can have a great idea and be excited about sharing it with the world, but if it does not meet the needs of others, it will not succeed as a business.
So researching things like trends, market value and demand is critical to a successful business.
You can do this by researching key competitors that are similar to your product or service.
Industries such as e-commerce, finance, healthcare, and technology are all lucrative business sectors that are always in high demand.
Does your business idea fit into one of the top in-demand industries? If not, you may want to dig a little deeper and find out which industry is the best fit for you.
3. Create a Business Plan
Next, It’s time to create a business plan and establish a road map to a successful business.
There are many ways to go about creating a business plan, but the most traditional way is to write an executive summary.
This presents the opportunity to create a well-organized document that’s supported with relevant statistics that bolster the confidence in your business idea.
By establishing a concrete business plan, it accounts for any pitfalls the company may have down the line, and ensures goals are met based on actionable steps.
From this, you can determine the business model and the type of taxation and legal requirements for turning a profit for your company’s business plan.
4. Register Your Business
When it comes to running a business from home, there are a number of things to take into account. One of them is registering your business.
This is important because you’ll want to know what type of business formation you need to register under.
Will it be a sole proprietorship, S. corporation, LLC (limited liability corporation), partnership, or corporation?
With a variety of business formations and taxation processes, it can be intimidating to know what’s best for your business.
doola makes it easy to start a small business from home—whether it’s registering your business, bookkeeping services, or applying for an EIN. (employer identification number) doola also offers affordable services that carefully map out your goals that cater to your needs!
You can explore those benefits and options here.
5. Secure Financing
You may need to secure the financing to get your business up and running. This may include applying for a business loan, applying for grants, or seeking out investors.
Either way, it’s important to know how you’ll be funding your business from home and how that will affect your operations.
If you don’t need a lot of cash at hand, it may be a good option to take out a personal loan. It’s much easier than getting a business loan and has the benefits of it being versatile and affordable.
That said, you will need to have a good credit score and a dependable income to pay off the interest when considering a personal loan.
You can read the full article on how to use a personal loan to start your business here.
6. Obtain Licenses and Permits
Depending on the nature of your business, you may need to obtain specific licenses and permits.
For example, restaurants require a liquor license to legally serve spirits with a high alcohol content, such as vodka, gin, rum, etc.
If you plan on running a business from home, there’s a chance you may need to apply for a home occupation permit.
And every business is different—diversifying the legal requirements on the type of establishment.
So depending on the type of business you wish to start, knowing which licenses and permits are required is recommended to avoid legal liabilities.
7. Set Up Your Home Office Space
You’ll need a dedicated space in your home to run your business and the necessary equipment.
And as a small business, you have the benefit of marking off many of your supplies as a business expense.
Some tax-deductible expenses include:
- Business loans
- And more!
It’s important to know the types of tax deductibles, so you can take full advantage of them to reduce expenses.
You can read the full article on what business expenses are and what counts as an expense here.
8. Get the Word Out
Now that you have everything prepared and ready to work. It’s time to publicize and promote your business.
You can start with a simple website and set up a marketing plan with social media, newsletters, and networking with local businesses.
This is a fundamental step when it comes to starting a business from home.
Unfortunately, just having top-notch content and passion is not enough. In this competitive digital landscape, you need to have a solid marketing strategy in place.
Things like email campaigns, blogs, Facebook ads, and video marketing are essential to getting the word out about your business.
9. Manage Your Business
One of the greatest advantages of starting a business from home is the accessibility to all the resources on the internet.
Although the legalities of business financing can be a bit overwhelming, as mentioned, the resources are endless, and companies like us, Doola, make it easy for you to manage your business.
In many cases, businesses are required to open a business bank account, and there can be stipulations that your business must abide by.
That said, there are several benefits when it comes to opening a business account, such as accepting credit card payments, easier tax preparations, and helping with liability and protection. doola offers a simple way to do business and takes you through the steps to set up your online business account. Plus, with doola you can set up your business account regardless of your location.
Meaning you can start a business based outside of the U.S. and generate U.S. currency!
When it comes to taxes, it can be a whirlpool of confusing terminology. With doola, we help you understand the type of business structure that’s best for you.
Assuming you’ll be a single member running your business from home. A sole proprietorship may be enough for your needs.
But if you wish to expand and potentially add members to your business, an LLC would be the better choice for future opportunities.
LLCs are a popular choice for start-up businesses from home because it offers the tax benefits of a separate legal entity and offers more flexibility.
Take a look at the full article on the ultimate guide to how LLCs are taxed here.
Bookkeeping can be one of the toughest parts of running a smooth business. But It’s important to keep track of your expenses to avoid unnecessary liabilities or commingling of your business and personal assets.
Like with any business, you can deal with the paperwork on your own or,
take advantage of doola’s tax compliance and bookkeeping services to reduce the headaches of confusing terms and reduce the risk of getting unnecessary fines.
Let us handle it, so you can go back to running your business and focus on what matters. Your business!
Ready to start your business from home?
Starting a business from home can be a fulfilling and profitable prospect if you do it right.
With all kinds of resources available at your fingertips, it has never been easier to start your own business from the comfort of your own home. But there can be many hurdles one must overcome to ensure success and grow the company. Proper planning, marketing, and management are crucial for the business to thrive.
And at times, it can be difficult to manage all the technical details that consist in running a small business, such as business structure, liabilities, and tax compliances.
However, as mentioned, there are countless resources to aid your efforts in running a successful business. And here at doola, we feel passionate about helping you achieve your goals!
Click here your business set up today.
What business can I start at home?
The options for a good business to start from home are: Blogs, dropshipping, social media management, copywriting, teaching – the list goes on and on!
How can I start a small business from home with no money?
You can start a small business with little to no money using the several free online tools you can find on the internet. Here’s an article on how to start a self-employed business with only $100.
What is the easiest business to start?
Every business has its challenges, but if you want to start a business that doesn’t feel like work, pursue something you love; that would be the easiest business to start.
How can a beginner start a business?
If you are just getting into business, it’s important to realize there are many factors at play that make a business thrive. So as a beginner, it is advised to educate one’s self and be surrounded by people who can give you sound advice.