The year 2020 has brought various industries to their knees, and even now, in the year 2021, the pandemic effects are still noticeable. If you’re in one of those affected industries, don’t worry because a home-based business can be your next successful venture. Starting a home-based business can be quite a daunting task for most, but it’s becoming more viable to more people. Companies from home are one of the fastest rising forms of business startups, and we explain why in this blog post.
The Rise of Home-based Business and Its Viability
Starting home-based business costs way less compared to traditional companies. Reports say that an estimated 44% of home business owners had a starting capital of $5,000 or less. In addition to that, 69% of startups started their companies from home. For example, Google was founded at the founders’ garage in 1998, a far cry from its position today.
The Advantages of Building a Business at Your Home
Home-based businesses come with a plethora of benefits compared to working for an employer. Here are the key advantages of running your business at home:
- Utilization of business loans. Banks classify their loan depending on how an individual chooses to use it. If you have a bank account for your business, you can use it for acquiring loans and saving profits.
- Deduction of taxes. If you’re qualified for a tax deduction, you can easily save home costs such as mortgage interest, repairs and maintenance, property taxes, and utilities using your business income.
- Reduced overhead expenses. Home-based businesses don’t require you to rent out an office space that might take most of your profits. Furthermore, you’ll save on gas since you won’t be needing to leave your home.
- Freedom to explore new business ideas. In home-based businesses, you can explore new ideas without the worry of wasting your office space, equipment, and more.
What You Need to Run A Home-based Business
As with any other business, there are multiple licenses and permits you need to have to operate. Below are the requirements needed for every home-based business:
- General Business License. Every business needs a license to engage in any business activities in its location. Whether it’s a nationwide, federal, or city business license, you need a basic license to operate. Please take note: some states include their Sales Tax License with the general business license. If they don’t, acquire a sales tax license along with your business license.
- Health and Safety Permits. This permit depends on your industry. Those running restaurants or crafts from home need to get their house inspected by the local health inspector and fire department.
- Sign Permit. Before installing any signs at your driveway, get a sign permit first from your local government.
Professional License. This also depends on your industry. If you’re running any legal services, daycare centers, or salons, you need to have a federal license or certification to operate.
Business Ideas that Benefit from Operating at Your Home
Here are select ideas that you can do right now that could bring in profit:
- Streaming. Broadcasting “let’s play” video games, song covers, fashion tips, and more are all the rage nowadays. Join the trend and try streaming on Twitch, YouTube, or Facebook.
- Buy and sell bulk products. The buy and sell industry is flourishing with the rise of online stores. Consider creating a Dropshipping website and selling online—all without the hassle of importing and exporting goods. We recommend using Shopify for all your Dropshipping needs.
- Sell homemade crafts. If you’re interested in crafting at home, this business idea might be for you. Get profit from your business by selling your products at home. If you choose this route, consider utilizing digital marketing to promote your products.
- Offer online services. Whether you’re interested in writing, marketing, designing, virtual assistance, or any other online service, you can profit from it through selling your service online. Consider joining Fiverr or Upwork for this industry. And;
- Teach online. If you have the talent to educate people, look no further than online classes. There are a plethora of categories in which you can teach. They could be classes for fitness, yoga, writing, English, or more! The sky’s the limit.
If you’re on the verge of establishing your own home-based business, it’s best to know all aspects that might hinder your business. Take account of the legalities, your location, the neighborhood suitability and location, your property’s appearance, your family, and your house’s suitability. Furthermore, you need to have a determination if starting a home-based business is right for you. Assess your personality if you’re ready and capable of starting a business. Since most home-based businesses focus on the founder’s hobbies and specialties, you should create one in which you’re most interested. You never know, your next home-based business might be a resounding success.