Starting A Business From Home

There used to be a real stigma about starting a business from home, like a huge red "F" sat on your forehead.  ("F" for "Failure" of course.)

How the times have changed.  Now, not only is it acceptable to start a home based business, but it is often preferable to do so.  An all kinds of businesses qualify as "home businesses".  For instance I know

• A contractor in building supplies who tripled his business when he brought it home.  He now has six employees, all working from home.
• A student who started in a dorm room.  He now has two employees, and is still home based.
• A business advisor who went from $1,000 a month to over $10,000 a month -- all at home.
• A work at home mom who regularly brings in $500 to $1000 "extra" money each month with her home business.

The list goes on and on.  There are no limits to what you can do at home.

The businesspeople that I note above did, however, have several things in common.

1.  They all approached this like a business, not like a hobby.

A "business mindset" is very different from a "hobby thought".  With business as the goal, a constant windmill runs around in your head:  How can I  turn this into profit?  It is great to enjoy creating pottery, but unless you can turn it into profit, it is not a business; it is a hobby.

Starting a business from home works a lot better when you can set time and space aside for business.  Even if you are working full time now, set aside a few hours a week, or time on the weekends, to "do business".  Then do it.  The same is true of your "business space".  Friends and family need to understand that when you are in your "business space", no matter how small it is, that you are "at work". 

Get the business licenses and permits needed for your area.  Keep your business expenses separate from your personal expenses.  Even dress for success if that makes you work more efficiently.

Do what YOU need to do to project that this is a real business.

2.  They all knew what they wanted, and researched their options until they found what was right for them.

Figuring out what you want in life is often the hardest part of starting a business from home.  A home business is not easy.  There is a lot of work in a successful business.  Before ever starting, figure out WHY you are doing it, and WHAT you are going to do.  The Why and the What will determine your actions for months and years to come, so take a bit of time to work on those questions.

There are so many options for home based businesses that most people have a hard time narrowing down the choices.  Work through a solid home business planning book to set your priorities in order.

Decide how much time you can realistically devote to your home business, and how much money you need to earn.  Set out costs and expenses, including incidentals like baby sitting costs while you work.

The rewards of starting a business from home are huge.  The financial rewards are just the beginning.  Simply being at home, planning your schedule, having a flexible schedule, being available for family -- these are all immense.  And the pure satisfaction of doing a job well is the real cherry on top, a perk that few regular jobs can offer.

3.  They all tackled online businesses, and none of them had previously had success online.

There are some home businesses that do not have an online component, such as being a local tailor or providing after school child care.  But more and more, it is the internet based businesses that really succeed, especially when higher income is one of your goals.

The most important thing that an internet based business accomplishes is that it opens up your potential client base to a worldwide market.  That is huge.  That is truly awesome.  Instead of selling in your neighborhood, you can now sell literally around the world.  Even personal service businesses, like consulting and accounting, can easily have an international clientele, as do most retail products and artistic goods.  If there is one solid reason for starting a business from home, it is to gain access to the international pool of clients.

Your Business Plan When Starting A Business From Home

In the event that you are looking for financing for your home based business, you will face the same obstacles that a traditional business faces:  few, few entities finance start ups. 

Then you have a double whammy because you likely won't be looking for much money, and most banks just won't work with mini-loans.

Odds are that you will be pretty much on your own in the beginning, at least as far as financing is concerned.  Does that mean, however, that you can skip writing a business plan?  Sorry, no.  Perhaps because no one else is looking over your shoulder, it is just that  much more important to create your own blueprint for success.  Set out what you are going to accomplish, and how.  Establish time lines and goals.  Get your books in order. 

Act like an established business.  The more you act like an established business, the more likely it is that you will become an established business.

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