What businesses can you start from home, without having to rent a space?
This is a question many people are asking, especially now that self-employment is a great alternative in the face of a competitive labor market.
- —I want to be my own boss and start a home-based business.
- —I’ve been looking for a job for months and I’m thinking about starting something of my own.
- —I have small children and would like to work from home.
- —I’ve had this idea for years and I’d like to make it a reality.
These and other phrases are common among entrepreneurs around the world. However, people aren’t always sure how or where to start a home-based business.
NOTE: We’re not talking about false promises of “easy work, you do your own work, and unlimited earnings,” like those “fill out online surveys” offers or selling catalog products to your friends. In reality, the best home-based business is one you start on your own, but with real work and time, perseverance, and intelligence. A business you can build and in a field you’re good at.
Therefore, today we will talk about how you can start your own business from home , step by step, to do it successfully.
Topics:
- Evaluate your talents ( soft skills )
- Evaluate your skills
- Combine your talents and skills to generate ideas
- Evaluate which businesses would operate from your home.
- Take out numbers
- Make your business plan to evaluate the viability of your idea
- Create your company identity
- Let’s get to work
- Conclusions
1. Evaluate your talents ( soft skills )
The first step to starting a business from home is to think about things you’re good at in general. Your own talents are inherent to your personality . For example, you might be very creative, very good at dealing with people, or have great communication skills. These innate talents are the fundamental foundation for any successful business venture.
If you’ve never been self-employed before, you may need to think a little more to determine if you have the profile of an entrepreneur.
Some common features that are necessary for this are:
- Self-motivation
- Self-sufficiency
- Perseverance
- Proactivity
- Able to deal with uncertainty
- Good resource manager
- Ease of conflict resolution
Additionally, you must be flexible, open to change, and adaptable. If you possess these qualities, you’re already in a position to excel. These are traits that will pave the way for you to start making money with profitable home-based businesses.
2. Evaluate your skills
This section refers to the knowledge you have acquired through your studies, work experience, or self-taught.
The difference between talents and skills is that talents refer to personal traits, while skills are specific knowledge in a specific field. For example, someone who is creative may have training or knowledge in design, writing, architecture, etc. Same innate talent, but different technical skills.
Make a list of the things you know how to do and have learned throughout your life.
3. Combine your talents and skills to generate ideas
Once you’ve considered your natural talents and technical skills, it’s time to consider what type of business you could start with them. This process works for any type of business , but we’ll focus on things that can be done from a small office or home office.
For example…
If you’re good at dealing with people and have culinary skills, the first idea would be a small local café, restaurant, or bar. But it could also include preparing food for home delivery—for example, to nearby offices or schools.
If you have a talent for sales and manual skills, you might be able to start your own shop selling crafts, clothing, jewelry, or home decor. Some of these items can be offered in an online store for selling personalized items.
Or imagine that you consider yourself a patient person, with a knack for expression and educational knowledge: You could consider becoming a home tutor, setting up a tutoring workshop, running a daycare center, etc.
On the other hand, if you’re good at organizing and financially savvy, you might consider providing virtual assistance or setting up an accounting office.
These are just a few ideas on how you can implement ideas to generate income. Since you likely have more than one talent and skill, you may come up with several business ideas. Don’t limit your thinking when making your list. List all your ideas at this stage. Eliminating options comes later.
4. Evaluate which businesses would work from your home
When starting a home-based business, you need to keep in mind that not all businesses will work well from a residential location . Some simply aren’t viable.
For example, if you want to set up a cleaning product laboratory, it’s unlikely you’ll be able to do so at home, as some substances are volatile, mildly toxic, or otherwise, and their preparation requires safety equipment and manufacturing space.
On the other hand, a business with a large number of customers coming and going could certainly bother your neighbors if it’s a closed area or if the surrounding parking spaces are occupied. It’s also important to consider what local permits you need to obtain from your municipality or city hall.
Now that you’ve made a list, discard any ideas you consider unfeasible due to technical issues. If you’re determined to start a business that you can actually work from home, discard those that require a separate location or require you to leave your home to run.
So, for example, if you don’t want to commute or it won’t be easy for you, being a home teacher or delivering prepared meals might have to be crossed off the list.
Many people who want to start a business skip this step because they’ve come up with an idea they like and feel they’d be good at.
Don’t make this mistake!
Otherwise, you risk investing months of your time, effort, and money into something that ultimately won’t work.
Figuring out your profit margin and creating a business plan is important, but these preliminary steps are necessary if you want to start a profitable and successful home business.
5. Take out numbers
It’s time to test your business idea and see how well it can do. You may be very talented at something and have the skills to do it, but if people aren’t willing to pay for what you offer, the business won’t work.
You need to answer 2 questions:
- How much would customers be willing to pay for this product or service?
- Can I make enough money from that?
For example, suppose you have a great talent for painting and you open an art gallery, but you can only paint four paintings a month because each one requires so much time. And each one can only sell for up to $100. That means you’ll only have $400 of income per month. You’ll have to subtract from that what you’ll spend on supplies to make them. Therefore, it’s not a business that’s really going to be profitable (unless you plan to live on at least $300, or less).
Many people don’t calculate their profit margin first. But you must remember that a business is about generating profits . If these aren’t sufficient, you’ll never have the revenue needed to grow or generate profits.
Go back to your list of home business ideas and evaluate the differences in profits between each. If the answer to either of the two questions isn’t satisfactory, discard the idea.
Keep in mind that you are the one who decides how much income is sufficient. Some people may be able to live on a monthly budget of $800, while others will need an income of $2,000.
Therefore, if you want your new business to be profitable, you must seriously evaluate your idea’s ability to generate profits.
6. Make a business plan to evaluate the viability of your idea
Some people have the misconception that working on a business plan is only necessary when applying for a bank loan . But in reality, a business plan serves to evaluate all the technical aspects of the business and thus determine whether it has a chance of becoming successful.
Once you’ve chosen an idea you’re passionate about and that you think will work, it’s time to create your business plan.
⭐ If you need help, a good idea is to hire a freelance business advisor .
The market research and mental exercises you do while working on your plan will go a long way toward helping you succeed.
In your business plan you should consider technical aspects, for example:
- Target market
- Distribution channels
- Suppliers of inputs
- Resources you have
- Break-even point in earnings
- Pricing strategy
- Cost of acquiring each customer
- Average purchase or ticket
⭐ Learn more about creating a business plan here.
If your business plan shows that your idea isn’t viable, discard it, choose another, and repeat the process. Don’t get frustrated if you have to review three or four business ideas before settling on one that you think will work.
I’ve got it ready… now what?
Now that you’ve figured out the type of business you’ll have, it’s time to think about your name and logo design.
7. Create your company identity
If you’ve already decided on the type of home-based business you’re going to start and have determined that it’s viable, it’s time to come up with your brand and logo. This part can be made easier by outsourcing to a corporate branding expert .
However, it’s important to have some idea of what you should consider when choosing a good logo design. For example:
- The type of logo to use
- The colors
- Typography
- The icon or pictogram
- How it will look on different surfaces
You should consider what kind of values you want to reflect in your company. Of course, it’s not necessary to have stationery and promotional materials with your logo from the start, but it will help you make yourself known through online advertising, a sign outside your home, your fan page, or other advertising.
⭐ You can learn more about choosing a good logo design here .
Once you’re clear on this, you can enlist the help of a professional designer.
8. Let’s get to work
Once you have the type of business you want to start, a work plan, and your brand, it’s time to get started: Start by acquiring the supplies your business will need: a computer, a kitchen, hairdressing equipment, desks, filing cabinets, mechanical tools… in short, everything you’ll use to get the job done.
Designate a place in your home where you’ll be working and make sure it’s dedicated to that purpose. Get everything organized and start making yourself known to your friends and natural market first.
Then , advertise on social media . If you don’t have a landing page or website yet, add some direct contact information to your social media accounts, such as an email address or phone number. You can also take advantage of direct messages (inboxes) on each social network, but be sure to monitor notifications closely so you don’t miss a beat.
Also, implement the necessary digital marketing strategies to gradually gain exposure. This can include paid advertising, but also defining your sales funnels and creating a comprehensive inbound marketing plan.
An important point to remember is that when starting a business, you must keep your operating costs as low as possible. This is to generate profits and reach and surpass your break-even point as quickly as possible. If at some point you need professional advice, it’s best to outsource the service when needed and invest wisely in advertising once you’ve clearly defined your target market.
This will help you fine-tune technical aspects or stay organized when you’re unsure how to do it. It allows you to have technical advice at the right time, without having to hire a permanent contract.
Conclusions
As you can see, there are no shortcuts to starting a truly successful home-based business. Don’t be tempted by those “work-from-home” offers that offer you work at almost no time. If you really want a successful home-based business, follow the 8 steps detailed above.
Remember that if you need professional help, you can always hire a freelancer temporarily to assist you with specific tasks or areas.
At SoyFreelancer.com, you can post all your projects and requirements to find the expert you need in any field. Sign up for free and get started now .
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