Below we have a guest post on the ins and outs of starting a home business. The article is both helpful and informative. It was provided by Ivy Crawford of CreativeHomeBiz.com. Enjoy!
Is It The Right Time to Start a Home Business?
You may have been mulling over a home-business idea for a while. Home-based businesses are convenient and cheap to start. They could also make you a lot of money. Still, they are a major time, money, and work investment, meaning you don’t want to make mistakes. Are you truly ready to begin? Or should you postpone your plan of action?
GAP Consulting answers your questions on whether the time is right to start your own home business:
Do You Have the Right Idea?
Your business idea needs to be solid – the success and failure of your business hinges on it. Penpoin offers some hallmarks of a solid idea: it’s profitable, innovative, solves a problem, has a USP, has substantial demand, and will stand the test of time.
Are Market Conditions Supportive?
Local market conditions should allow your product or service to gain traction. Look for market trends, customer expectations, competitor activity, the state of the economy, government regulations, and other factors. Doing thorough market research will work in your favor.
Where is the Money Going to Come From?
You need seed money to conceptualize your product or service. Furthermore, experts recommend that you have enough to keep your business running for three to six months (even if you don’t turn a profit immediately). The Small Business Association explains that you will need a concrete funding strategy, whether that’s borrowing, applying for grants, or using your savings.
How are You Going to Make Money?
Besides funding, you also need an appropriate business model or monetization strategy. This would be something that matches your idea to the market and doesn’t overshoot your budget. It also includes concrete short-term, mid-term, and long-term goals that make your business profitable. Gist offers advice on choosing a model. Writing a business plan is highly recommended.
Have You Read Up on Taxation?
Businesses in the US are heavily taxed. You will need to comply or be hit with fines. You can reduce some of the taxation burdens by operating under an LLC structure. For instance, LLCs are only taxed on their share of the profits, making it an ideal option if you want to pay less without sacrificing legal protection. States have their own rules around LLC formation, so look into how to start an LLC in California and be sure to check the requirements before moving ahead. You can register your LLC yourself for free, hire a lawyer (expensive), or use a formation service (cheaper).
Are You Ready to Make Marketing Your Forte?
Marketing is everything in business – even an average idea with above-average marketing can be successful. You will need to get good at marketing. Digital marketing is essential, but you can’t neglect more traditional marketing methods either.
For instance, a business card leaves a lasting impression, is more visible than email, and gives stakeholders something tangible to remember you by. You can even use free online templates to design personalized business cards yourself. It’s as easy as adding images or text, setting a font, and choosing a nice color scheme.
If you would like some help getting your marketing campaigns started, then contact GAP Consulting to set up a consultation.
Take the Leap
Keep in mind that conditions may never be perfect, so don’t wait for that. Some of the most successful companies in the world started during a recession. Arguably, more than anything else, your persistence and willingness to learn will see you through and make your business successful. Sometimes good enough is enough.
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