When I was growing up, I always dreamed about my life as an adult. I hopped around from wanting to be a fashion designer, to an artist, then a model, then a CEO of a company, not realizing what these things had in common.
I actually just wanted to be an entrepreneur.
I didn’t realize this until years after college and after getting my Master’s degree.
There I was, in the corporate world, hating my job.
I felt stuck in this corporate gig for the past seven years. I was tired of being micromanaged or asking for time off. I didn’t want to ask permission to make a doctor’s appointment. And, although I received bonuses and raises every single year, I wanted more out of my income.
I knew that if I continued in that job, I would remain unhappy with my work life.
So, I decided to do something bold.
I started a business!
A year into this business, which was an eCommerce store, I was outearning my day job wage. So, I quit!
I still remember the look on my boss’s face when I told her I was putting in my two weeks notice. She actually laughed and said, “You’re joking, right?”
I went on in that business to make six figures (more than my 9 to 5 job) and eventually sold it and pivoted into the role I have now, teaching and educating small business owners and wannabe entrepreneurs on how to start a business in your home, the right way.
That’s what this article is going to cover!
You might have questions like…
What kind of business can I start from home?
How can I start my own business with no money?
What is the best home business to start in 2020?
We are going to answer all that and more! Keep reading to learn how to start a business from home!
How to Start a Small Business from Home
How did you get here? Have you always dreamed of becoming an entrepreneur or maybe you’re tired of your day job and you want something more out of your career.
Well, a business can offer you both!
Fulfil that dream. Create jobs for your community. Serve the general public. Make money in your own business!
If you’re finally ready to do it and you want to start a business in your home, this is where you’ll start.
Once you’ve made the decision to start your own business, you’ll want to start by thinking about the kind of company you want to run. What will your business be? Who is your audience/customers? What are your business goals?
As you answer these questions, put it to paper and create your business plan.
Your business plan is going to give your business idea some structure. You’ll put your ideas on paper, set goals, and create a timeline so you can set everything into action.
These are the main steps you’ll follow:
Step 1: Define your business
Step 2: Register your business with your government
Step 3: Get your equipment and business account
Step 4: Launch your business
Defining your Business
In this step, you’ll be figuring out what kind of business you’ll be operating and these are some questions you’ll want to ask yourself:
- Will it be solopreneur-run or will you need to hire staff?
- Product-based or service-based?
- Startup budget?
- Launch date?
- When will it become profitable?
- What tools/resources/equipment will be needed?
This is just the tip of the iceberg.
Consider what you’ll actually name your business, along with figuring out your business form, etc.
Then, it’s time to register your business.
Registering Your Business
Usually, where ever you are you will need to register your business with your government for your legal trading name and tax.
Also, depending on your industry you may require a licence, although I do not find this being common for most home businesses.
Here is a tip, open your countries Google (eg, .com, .com.au, .co.uk) and search for “register business” to find the relevant sources. Government sources are recommended.
Getting Equipment and Tools
To operate your business, you’re going to need equipment.
This can be a laptop and printer or more specialized equipment like a sublimation machine or 3D printer.
Starting a business can be expensive so don’t feel rushed to get every piece of equipment you want, right away.
Start with the basics so you can operate your business on the bare essentials and then you can upgrade or bring on more equipment and resources as the business grows.
After you know what kind of business you’ll run, registered it and you have gotten the proper equipment and tools, you’re that much closer to launching.
Creating a launch plan is a great way to keep you on track so you’re prepared for an incredible introduction to the public.
Then, on launch day, you’ll make your big reveal of your business!
What kind of business can I start from home?
There are tons of different businesses that you can start from home. When deciding what direction you want to go, start with the basics.
Product-based businesses VS Service-based businesses
A product-based business is a business that sells products. This can be physical or digital products, like:
- Home goods
- Pet supplies
- Hobby goods
- Digital art
- Digital planners
You’ll be sourcing goods or creating products and selling them to your audience.
Then, there are service-based businesses where you will be performing a service for your customer.
Examples of service-based businesses include:
- Beauty Saloons
- Web Designer
- Tax advisors
You can go either direction, product-based or service-based, and see a successful business.
Product-based businesses generally have more overhead costs but more income potential. Think about if you’ll need a warehouse or factory, staff to package and fulfil your orders, shipping supplies, product supplies, an office, the need to perform customer service, etc.
The cost can all add up.
Service-based businesses may not have these same costs necessarily but they are more dependent on you (or your team) being available for the business.
In a product-based business, if you’re sick with the flu for a week, the business can continue on. It’s most likely run on a website that’s operational 24/7 and sales can continue to come in on autopilot, with your staff handling the day-to-day activities.
This is different in a service-based business.
In a service-based business, things can go a different path.
For example, if you run a consulting business and you’re sick with the flu for a week, that means no consulting work (and no consulting income) for the week.
Consider this when deciding what kind of business you’ll be operating.
What is the best home business to start in 2020
Wondering what the best home business to start in 2020 is?
These businesses are the top 3 best businesses to start this year. Based on the benefits, startup cost, and other reasons, they’re ranked highest for businesses to start in 2020. Take a look.
An author is someone that writes a book or a piece of content. Authors can publish books and ebooks. This has made the list because of the passive nature of the income to be made.
Work is done in the beginning to research, write, and create the book. Then, it’s put on the market for sale. When this happens, the author can enjoy passive profits in the future, indefinitely.
So, this is a hands off kind of business that’s great for creatives who want a part-time or passive business.
Authors can make an unlimited amount of income, like the author J.K. Rowling, creator of the Harry Potter series who became a billionaire!
2. Affiliate Marketing
An affiliate marketer is someone who refers products to others and earns a commission on the sale.
For example, if you are an affiliate for a footwear company and share your affiliate link with your Instagram audience for your favourite pair of shoes, you can make money (a commission) if people buy from that company with your link.
A 20% commission means that a $100 purchase earns you $20. And, if your share results in 50 sales of $100 each, you just earned $1,000!
I shared a cashback company with my sister and made $25 for referring her!
People are making a lot of money in this line of business and the great thing is, you can automate it, putting this income stream on autopilot for you.
You aren’t required to physically sell or fulfil products or services and you can run this type of business entirely online.
Michelle from Making Sense of Cents travelled the world in her RV while earning over $50,000/month from affiliate marketing!
There’s opportunity for passive income in affiliate marketing as well and you get the flexibility of working from home, part-time or full-time, your choice!
There are a variety of different consultants available and these professionals get paid to share their expertise and advice with companies.
Here are some examples:
- Business consultants
- Strategy consultants
- Financial advisory consultants
- IT consultants
If you are an expert in a field, this is a neat way to make a lot of money for not a lot of work. It’s not unusual for consultants to work less than half of the year and earn a six figure annual salary.
When I worked my 9 to 5 job, we had work culture consultants come in and do a 3-day workshop with the entire office of 30,000+ employees. They were likely paid mid to high five figures or more, for that service. And, they only worked 3 days!
If you have the expertise, consider this business for the low startup cost and high income potential.
What do these 3 businesses have in common?
Low risk and high reward. That’s what helped them make the list of best businesses to start in 2020. Keep this in mind when you launch your own business.
How can I start my own business with no money?
If you want to start your own business but have limited funding, you are not alone.
When I started my eCommerce business, I bootstrapped the entire operation.
I started with a very modest budget in the beginning and as the business saw success and revenue rose, I was able to pour more money back into the venture to run it more efficiently and scale operations.
There are businesses that need money to start but, there are others that you can start with zero out of pocket cost.
Here are 15 businesses you can start with no money:
- Social media manager
- Digital marketer
- Advertising specialist
- Chatbot engineer
- Digital agency owner
- Virtual assistant
- Affiliate marketer
- Ebay seller
- Website developer
- Graphic designer
- Tax consultant
You notice that these businesses are mostly service-based.
You get a lot more for your effort with little out of pocket cost with service-based businesses, though there may be more income potential with product-based businesses, depending on the type.
For example, with a plumbing business, you are limited in the income you earn. There are only 12 hours in the day you can work and your business can only employ 5 plumbers to make the most money. Outside of opening more plumbing branches, you’re at a stop with income.
But, with an eCommerce store, you can add an unlimited number of products and you can serve an unlimited number of customers worldwide 24/7.
You can see by comparing the two examples that product-based businesses can outearn service-based businesses, in some cases.
But, they’re also a lot more costly to operate.
There are pros and cons to choosing either business model.
There are so many benefits of running your own business. You’ll love the freedom and flexibility you’ll get from being your own boss and making the rules.
Plus, these added benefits:
- Unlimited income potential
- Create your own work schedule
- Work from home
- Unlimited vacation time
There are drawbacks that exist with being a business owner. Consider these:
- No benefits
- Unstable income
- Heavy work schedule may be required (especially during startup)
There you go. You are now on track to be an entrepreneur!
There can definitely be more steps involved in creating your business than outlined in this article so stay tuned for more. We hope you found this educational and helpful in your endeavours to start a business from home online.
Starting a business from home can be a wise choice and excellent for the long-term, but not without sacrifice and hard work. If you’re ready to dive into entrepreneurship, my best advice to you is to start now!
There will be no other perfect time to start your business.
So, what do you think?
Share your questions and comments down below!