Nowadays, people are venturing into home-based businesses because of the pandemic. It is more practical to start a business from your home because you can stay indoors as much as you like. Since governments and health experts all around the world are one in encouraging people to stay indoors as much as possible, it only makes sense for you to start your business from the comforts of your sofa set. Why not? Home-based businesses are profitable when done right. It’s even more fulfilling than working a nine-to-five desk job.
If you already have a business idea, it’s time to put that into action. But before diving completely into launching your business, you have to realize that you cannot do this alone. You need to consult and work with people to get your business running. Who exactly are these people?
You need lawyers to guide you in picking a business structure. Choosing the right business setup will impact your taxes, liabilities, assets, risks, and other facets of the business. The most popular business structures are sole proprietorship, limited liability company (LLC), partnership, and corporation. The easiest to apply to is a sole proprietorship, although your lawyer will tell you this isn’t a great structure for your personal assets.
You will do better with a limited liability company because it protects your personal assets if your business gets into legal trouble. Picking the right business structure for a home-based business is often complicated. You have to work with a lawyer, accountant, or another qualified expert to determine the pros and cons of each structure.
Unless you understand how the tax system works, you have to hire an accountant to manage your finances and taxes. You don’t need to employ one solely for your home-based business. However, you have to keep an accountant in retainer, so you have someone to reach out to when you need to fix your taxes and income statements. More than that, a tax accountant can also guide you in getting tax numbers for your business and employees.
Don’t think so little of a home-based business that you decide not to get insurance for it. Talk with an insurance provider about what type of insurance fits your home-based business. You can choose to get a general liability insurance or a business owner’s policy.
The former protects you from lawsuits. For example, a client trips on a cable wire while visiting your home-based office. The latter protects you both from lawsuits and property damage. If natural disasters damage a piece of equipment in your home office, a business owner’s insurance will cover it. Between the two, the business owner’s policy offers more protection. It is more expensive, too.
But if you have employees, you will need a workers’ compensation insurance. Even if your employees don’t work in your home office, you will protect your business and them by having a workers’ insurance. This type of policy covers for their medical care and wages in case of work-related injuries or illnesses.
You cannot use your personal savings account for your business. You need to open a business account. If possible, open a checking account, so it’s easier to follow your transactions. A bank officer will ask for certain requirements such as your business permit and even the incorporation papers, so they know under what name they should place the account.
Web Designer and Developer
You can hire a separate web designer and developer, or you can hire someone with both skills. Either way, test if their knowledge and skills are what you need for your website. And yes, you need a website for your home-based business. Otherwise, how will people know about your products and services? A website makes your business more legitimate. Clients and customers are more comfortable transacting with businesses if they have well-designed websites.
And finally, the most important thing is to connect with suppliers. You have to spend time looking for good and affordable suppliers. If you are going to make crafts at home and selling them, you need to maximize your profit margin. This means finding the most cost-effective supplier. So, don’t rush when choosing suppliers. They can make or break your business.
A home-based business is not any easier than running a brick-and-mortar store. You have to put into it the same effort you would if you’re running an office-based business. Reach out and surround yourself with people who can help you get your business off and running, as well as manage it successfully throughout the years.