For some people, finding a new career means deciding to go it alone by starting a home-based business. Running a home business can have a multitude of benefits, such as flexibility, anonymity and the satisfaction of being your own boss. However, it also carries a great deal of risks, such as no guaranteed paycheck. Because of the risks involved, it is important to give careful thought and planning to starting your own business. Here are six helpful tips to help you get started.
1. Examine your finances before leaving a salaried position.
One thing all business owners must go through is a period of sacrifice while their endeavor gets off the ground. If you are considering leaving your job to start a business, start putting away some funds in a separate account to cover your living and business-related expenses. Doing so will give you the freedom to put your energy into getting your business up and running without neglecting your financial responsibilities.
2. Invest in good equipment and tools that are necessary for your profession, but don’t overdo it.
Susan Keuhnhold, an independent graphic designer in Indianapolis, said she invested in top-of-the-line equipment and software. This provided her with the right tools for the job and gave her credibility with clients and vendors. “I had been out of the field for a while and knew the standards had changed, so I talked to other designers and printers to find out what the industry’s expectations were,” she said. However, as much as you may be tempted to outfit your office with all the latest business gadgets, avoid purchasing items that are not necessary to your needs. Consider whether you really need a copier and fax machine to start. Visiting your local Kinko’s every once in a while might be sufficient in the beginning.
3. Determine where your first business is going to come from before opening your doors.
For Robyn Frankel, who had spent several years working at a public relations agency, finding her first clients for her new business was relatively easy. “I was able to attract companies I had worked with in the past and had a roster of clients to start with,” she said. Keuhnhold attracted her first clients by volunteering. “If you can afford it, volunteer projects are a good way to get started,” she said. “I did a very simple project for my neighbor, who happened to own a business. That task gave me new materials for my portfolio and helped with networking. Volunteering led to several business opportunities.” Both Frankel and Kuehnhold said they continue to find much of their business through involvement in community organizations.
4. Create a separate workspace.
Frankel has operated her business out of her home for many years and successfully separates work life from home life. She says that when she is in her home office, she is at work and does not take care of household tasks. On the other hand, she makes sure she does not spend all day and night working. “I have a separate work area and business phone line and have learned the importance of leaving my office at the end of the day,” she said. Find a balance and make sure you think of your home office as a professional environment.
5. Invest in the services of an accountant.
Moving from working for a company to working for yourself has a dramatic impact on your financial situation. One prudent investment to make right from the start is a meeting with an accountant who can help you set up your business and navigate tax laws. If you can find a good accountant who is willing to work and grow with you, you will have a sound and valuable business partner for many years.
6. Research, network, and talk to others who have paved the way before you.
You can learn a great deal through books, in magazines such as Entrepreneur and through other online resources. It is also helpful to talk to other business owners. Find out if there are any small business organizations in your area. Contact your local Chamber of Commerce to network with other business owners and find advice from organizations like the Small Business Administration. You can give yourself a head start by taking advantage of lessons learned by others.
