How to Start a Business From Home in 5 Steps

business from home

In the United States, about 400,000 new small businesses are born every year.

Many are traditional brick-and-mortar businesses, but almost 25% of small employer firms are home-based.

Working from home offers plenty of unique benefits. These include lower overhead costs, higher margins, and numerous tax benefits. Plus, reduced commute time and more flexible work hours can provide you with a sense of personal freedom.

Keep reading for a quick rundown on how you can launch your very own successful business from home!

1. Conduct Preliminary Research

Before doing anything else, you need to understand what you’re getting yourself into.

Identify the strengths and weaknesses of your competitors. Also, create a profile of your target market.

Look at the trends in your industry as well. Figure out what steps you can take to differentiate yourself from the rest of the pack.

Even though you’ll run your business from home, find out if you need any licenses or permits. This will help you determine what it takes to operate your business legally.

2. Develop a Concise Business Plan

Nearly one-third of small businesses fail within the first couple of years. If you want your home-based business to start off on the right foot, you need to put together a one-page business plan.

In this plan, begin by defining the following three items:

  • Your vision for the business
  • The mission of your business
  • Your primary objectives

Once you have these listed, write down the strategies you intend to use. Gather some ideas from your favorite entrepreneurship blog.

Finally, create a step-by-step action plan that will help you accomplish your objectives. This should cover every aspect of your business, from marketing to selling.

3. Establish Your New Business

At this point, you should have a name in mind for your business.

Do a quick trademark search to make sure nobody else has claimed that mark yet. Check your state database as well.

Next, file a DBA (Doing Business As) in your state. You may also want to get an Employer Identification Number (EIN) so you don’t have to reveal your social security number to clients.

4. Build a Responsive Website

You need a website if you want to enjoy the benefits of having a strong online presence.

Try out several different website building platforms to see which one you like the most. WordPress, Squarespace, Weebly, and Wix are great options for most small businesses. But if you want to start an e-commerce site, you might want to consider Shopify.

If you decide to code your own site, make sure you take advantage of responsive web design. This approach adapts your website to fit any screen size, benefiting mobile users.

5. Prepare Your Workspace

Since you plan to run your business from home, you need to find a good place for your office.

Ideally, you want to choose a room that’s far away from any potential distractions. You also want to avoid a messy room, as clutter has a negative impact on productivity.

Think about storage space too. Invest in some new filing cabinets if necessary.

Final Thoughts on Starting a Business from Home

Before launching your business, determine your office hours and set a strict schedule. While running a business from home offers flexibility, you need to manage your time wisely.

Ready to learn more about starting a lucrative home-based business from scratch? If so, make sure to check out our business blog!