Advertising
Advertising

9 Considerations When Starting Up A Home Business

9 Considerations When Starting Up A Home Business

The Small Business Administration estimates that 52% of small businesses are home-based. That number continues to rise as workers seek a better quality of work and home life. However, operating a home business is not as stress-free as it may appear. Here are some considerations to keep in mind.

1. Family Support

To effectively operate a home business, you need time uninterrupted by family obligations. Make certain your family is aware of, and willing to respect the time you need to meet your business obligations.

Advertising

2. Isolation

Working at home can be very lonely if you don’t structure your time to include social interaction. In a traditional job, you have co-workers to exchange ideas with and share your triumphs. Find some way to work that into your home business life by adding time for activities, such as finding other people operating home businesses to network with.

3. Capital

Like any business, capital is usually the straw that breaks the camel’s back. You have to figure out if you have enough money to fund the initial startup cost – either for a certain product inventory or a list of services and materials needed. There are many ways to get the capital. Some opt for loans, but I highly encourage someone who is seriously looking for a capital, to read more about how debt financing or payday loans work before going into it.

Advertising

4. Financial Plan

Not only do you need capital, you also need to keep your financial books in order, making certain not to intermingle business funds with your home finances. If you put money from your savings into your business, account for it and pay yourself back. If you are paid in cash for a job, don’t spend it on groceries before entering it on the books as income that you have paid out to yourself. Set up a good bookkeeping system from the get-go and follow it to the letter. Make certain you have enough money to operate for a year and grow your business online without having to raid the family cookie jar to keep the business afloat. The fastest way to lose family support is causing them financial hardship to achieve your dream.

5. Organization

Every successful business has a strong organizational structure. For a home business, this is even more important because you need to be clear when it is business time and what is business space. That doesn’t mean you go into an office and close the door for eight hours every day. It means that you need a schedule that everyone knows about and space that is yours for working. Set up procedures for operating the business that are comfortable for you, but get the work done.

Advertising

6. Legal Regulations

Make certain you are meeting all the legal obligations required by the city, state, and federal governments. A home business is a “real” business and needs to follow the laws for operating as a business where you live.

7. Marketing Skills

The blood of business is marketing. No matter if it is offline or online, you need to have the right skillset on how to market your products or services. Of course, since technology is rapidly evolving every single day, it is understandable that you cannot be good at all areas. How to appear on the first page in your target keywords in search engines or creating a Facebook ad are some of the things you need to consider doing. But if this is not your forte, you can always hire somebody to do it professionally.

Advertising

8. Office Space

Set aside space for an office. Whether it is a closet, a garage, or a spare bedroom, you need some place that is for the home business. Everything for the business should go there when you stop work. The dining room table may be nice to work at, but precious documents can be lost if they are left around the house. Have a place for everything and keep it there when you are not working.

9. Equipment

Deciding what equipment is needed is a big decision because of the cost and maintenance. Check if you need things like:

  • a separate telephone line
  • an internet connection
  • a computer dedicated to the business
  • a printer
  • a fax machine
  • a cell phone
  • a xerox machine

Most home businesses start small and add equipment as it is needed. Assess what your business should have at a bare minimum and budget for it.

These are just some of the most basic things that you need to consider, not just for home businesses, but in any start-up businesses in general. It must be planned as carefully as any other endeavour you undertake if you are going to find the balance that is needed to make it work. .

More by this author

Junie Rutkevich

Game Developer of iXL Digital

8 Things You Should Consider Looking At When Buying A Home, Part 2 Zinc: The Usually Forgotten Micronutrient We Need Daily and Its Food Source How to Make Sure What You Sell Is What the Market Needs 7 Things To Consider Before Hiring An Advertising Agency Is It Necessary To Follow Traffic Rules?

Trending in Entrepreneur

1 Feel like Giving Up? 16 Way to Help Entrepreneurs Stay Motivated 2 15 Stellar Startup Business Ideas for the Burgeoning Entrepreneur 3 How to Be a Successful Entrepreneur (15 Powerful Actions to Take Today) 4 8 Life-Changing Skills You Can Learn in Less Than 6 Months 5 10 Websites To Learn Something New In 30 Minutes A Day

Read Next

Advertising
Advertising

Last Updated on October 18, 2018

10 Key Characteristics of a Highly Successful Entrepreneur

10 Key Characteristics of a Highly Successful Entrepreneur

When it comes to starting your own business and pursuing your dream of becoming an entrepreneur, it can be advantageous to go all in and embrace the flexibility of finally quitting your day job.

Keep in mind, though, that it takes a special kind of person to take the business world by storm: a person who has cultivated the key characteristics of entrepreneurial success.

People with these characteristics are likely to succeed, whereas people without them have difficulty moving forward with even the most brilliant business ideas.

These characteristics of an entrepreneur are so important that I’ve decided to cover all 10 of them in detail so that you can start your business with your best foot forward.

1. Successful Entrepreneurs Practice Discipline

Plenty of business experts claim that you can’t get anywhere as an entrepreneur without vision or creativity, but that’s simply not the truth. Instead, the one quality that no entrepreneur can be successful without is discipline.

To build an idea into a business, you have to have the discipline to spend time slogging through the least fun parts of running a business (like the bookkeeping), rather than taking that time to do something fun.

Andrew Carnegie, one of the most financially successful Americans of all time, grew up working dull and difficult jobs in factories. Despite going to bed hungry some nights, he continued doing his best work. He was eventually hired by a railroad company and continued to move up the ladder until starting his own successful businesses. Carnegie is a fine example of an entrepreneur dedicated to discipline and hard work. He truly earned his dreams of prosperity and success.

When you’re the boss, there’s no one to keep you at work except yourself — and there’s no short-term consequences for skipping out early.

Sure, if an entrepreneur plays hooky enough he knows that the business just won’t happen, but it’s very hard to convince someone that ‘just this once’ won’t hurt (and to keep ‘just this once’ from becoming a daily occurrence).

Advertising

2. Successful Entrepreneurs Keep Calm

Things go wrong when you run your own business.

Most entrepreneurs go through crises with their businesses — and more than a few wind up with outright failures on their hands. But when you’re responsible for a business, you have to be able to keep calm in any situation. Any other reaction — whether you lose your temper or get flustered — compounds the problem.

Instead, a good entrepreneur must have the ability to keep his cool in an emergency or crisis. It may not make the problem easier to solve, but it certainly won’t make it harder.

Honestly, losing your calm is a quick path to becoming the kind of person who gives up in the face of adversity. Instead giving in to frustration, remember classic entrepreneur Benjamin Franklin.

Franklin kept his calm as he experimented and tweaked his inventions again and again in pursuit of success. He didn’t give up during his many failures – he chose to innovate. You can choose innovation, too.

If an entrepreneur can handle failure without frustration or anger, s/he can move past it to find success.

3. Successful Entrepreneurs Pay Attention to Details

Restricting your attention to the big picture can be even more problematic than ‘sweating the small stuff.’

As an entrepreneur, unless venture capital has magically dropped out of the sky, a small expense can be a killer. It’s attention to detail that can make a small business successful when it has competition and it’s attention to detail that can keep costs down.

Attention to detail can be difficult to maintain — going over ledgers can be tedious even when you aren’t trying to pay close attention — but keeping your eye on a long-term vision is just asking for a problem to sneak in under a radar.

Advertising

After a business grows, an entrepreneur might be able to hire someone to worry about the details. In the beginning, though, only one person can take responsibility for the details.

Skeptical about the importance of details? Look no further than Howard Schultz, who grew a small coffee shop called Starbucks into one of the most globally successful coffee businesses in the world through his extreme attention to detail.

He is famous for taking all aspects of growing a business into account, paying attention not only to financially smart business decisions, but also focusing on socially responsible business decisions. Details can take you far.

4. Successful Entrepreneurs Embrace Risks

No entrepreneur has a sure thing, no matter how much money s/he stands to earn on a given product. Even if a product tests well, the market can change, the warehouse can burn down and a whole slew of other misfortune can befall a small business.

It’s absolutely risky to run a business of your own and while you can get some insurance, it’s not like most investment options. Even worse, if something does go wrong, it’s the entrepreneur’s responsibility — no matter the actual cause. In order to deal with all of that without developing an ulcer, you have to have a good tolerance for risk.

You don’t need to channel your inner frat boy and take on absolutely stupid risks, but you need to know just how much you can afford to risk — and get a good idea of how likely you are to lose it. If the numbers make you uncomfortable, the risk is too great.

Embracing risks is essential for growth and additional success, as well. Walt Disney, for example, could have stayed comfortable with his advances in the film and animation industries, but decided to expand his brand with a new dream: a theme park that soared above the competition. Without taking this risk, the incredibly successful Disney theme park empire would never have come about.

An entrepreneur has to be willing to accept pretty big risks, with some level of comfort.

5. Successful Entrepreneurs are Balanced

You can take any characteristic too far. There’s a point at which attention to detail can become obsession or calm can become unemotional response.

Advertising

As an entrepreneur, you have to be able to balance your characteristics, getting the most of them without going over the edge. But balance for an entrepreneur goes far beyond keeping your characteristics in check, though.

Just as an entrepreneur doesn’t have a boss to keep them at work when necessary, they don’t have one to send them home when they’re done. If you are working for yourself, you have to decide how to balance your work and home life — and if you have a day job to add into the equation, balance just gets more complicated.

Oprah Winfrey, one of the most successful and influential entrepreneurs out there, understands the importance of balance. Winfrey has a lot going on; she runs her own media kingdom, acts, produces films, publishes print, and more. In an interview with Fast Company,[1] she talks about her efforts to balance priorities and self care, saying that she must ask herself what is truly important in each limited day.

You may or may not have as much on your plate as Oprah, but learning how to balance whatever you have going on in life will certainly help you farther along down the road as you learn to be a great entrepreneur.

6. Successful Entrepreneurs are Passionate and Motivated

In order to develop any of the above characteristics, you must have a foundation of passion. Staying disciplined day after day during the building of your business takes unrivaled motivation.

Before you start any business, ask yourself if you can sustain true excitement about your idea during even the darkest days ahead of you. If the answer is yes, then good for you! Nurture your natural motivation by taking these action steps throughout your business journey:

  • Commit to making short and long-term goals. Check in with them often to stay on task.
  • Have a plan in place for the inevitable days when you feel discouraged. Make a list of things that will help keep you motivated and focused.
  • Share your ideas with trusted individuals who are just as excited as you are. They will help keep your enthusiasm rolling even when you are feeling down.

By being prepared for apathetic days and holding fast to your authentic passion, you can actually enjoy your journey to success.

7. Successful Entrepreneurs Adapt

Remember this one word: flexibility. Seasoned entrepreneurs know that change is not only a part of life, but also a part of the business world. Expect change and choose to adapt.

As a new entrepreneur, it will be tempting to cling to your original business plan with no exceptions, even if you notice it isn’t working. Good entrepreneurs know that it’s okay to make smart, informed changes in order to ensure efficiency.

Advertising

8. Successful Entrepreneurs are Marketing and Sales Experts

No matter what kind of business you are starting, a knowledge of marketing and sales will save you many headaches. A passion for creating a beautiful handmade lifestyle product is not enough to run a successful lifestyle brand; it is critical that you understand key business principles in addition to your natural skills or great product line.

Not sure how to start? Taking business courses is a great idea, but you can also easily brush up on sales and marketing through free online resources. Check out these 10 Sales Skills Everyone Should Master To Be Successful to begin now.

9. Successful Entrepreneurs Have Strong Money Management

Along with sales and marketing skills, money management is a very useful tool in the box of the entrepreneur. Understanding how to best manage your money can be the difference between early success and early failure in the business world.

If money management isn’t your strongest skill, prepare to hire a financial expert to help you with any tricky business that comes up. Financial guidance and knowledge is never a bad idea.

10. Successful Entrepreneurs Ask Questions and Continually Improve

Pride is a natural human quality, but it’s important to humbly conduct some constructive criticism every now and again on both yourself as a leader and your new business as a whole.

Assess how things are going and be willing to make positive changes if necessary. Here’re 15 ways to cultivate lifelong learning.

If you are always improving, then how can you ultimately fail?

The Bottom Line

Let me remind you of one important fact: the qualities of an entrepreneur listed here are not exclusively available to some people and elusive to others.

Although some people may have natural strengths and weaknesses, these qualities can be learned by anyone interested in taking up the entrepreneurial challenge. It might not be easy to change old habits, but it is absolutely possible to cultivate these characteristics in yourself.

Whether you’re a business owner or an aspiring entrepreneur, with hard work, you can train yourself to develop the qualities that truly determine the entrepreneurial spirit and future success.

Featured photo credit: Unsplash via unsplash.com

Reference

Read Next