Important Considerations when Starting a Business from Home

Home-Based BusinessHow do you start a home-based business? And is there a way to start a business from home that isn’t an online business, but an actual business that deals with customers in real life? You’ll find the answer in this article.

There are many home-based businesses that you can start if you have a bit of space to convert into a shop, and you don’t a lot of start-up capital to do it. If you have more money to invest, this is going to be easier, but you can generally start a home-based business on as little as a four-figure investment. Later on, we’ll get into just a few home business ideas that will help you generate income for your family, allow you to spend more time together, and provide a work/learning opportunity for your children.

What better way to run a business than to get your loved ones to contribute and help out? Family businesses can be fun, because you can spend time together and you can generally trust a family member to handle your money a lot more than an employee. There’s a common misconception that the family should be kept separate from business, and in some families, that might be true. However, if you have a good relationship with your spouse, children, and other family members, a home-based family business can be a great blessing, because it can become a legacy that is passed down to subsequent generations.  

Most large corporations in the U.S. started out as family businesses. One of the best examples of this is Walmart. Even something as simple as a family bakery could turn into a billion-dollar enterprise if you come up with a unique and tasty recipe that everyone loves and you’re able to build a unique brand around your product. Little Caesar’s started as a small family-owned pizzeria in Detroit and is now one of the largest pizza franchises in the country. There is no reason this cannot happen for your family business too.

How Much $ Do I Need to Start a Business from Home?

E2 VisasThis will depend on whether you’re starting a business from scratch or franchising. If you decide to start your own business from scratch, you’ll have to take care of costs such as store/office space rental, bills and materials you need to create the product. If you have a lot of room in your house or you already live in a convenient location, this will instantly reduce the start-up costs required. Real estate is your biggest concern when you’re opening a business that serves the public, so depending on your location and available space in your home, the start-up costs can range from a couple thousand to $20,000 or more if you need to renovate your home or purchase land.

If you choose the franchise route, there will be fees involved to affiliate with an established brand. Franchise fees for home-based businesses can be as little as $10,000 and as high as $50,000 or more. But in return, you are receiving a proven business model, comprehensive business plan, and extensive support. For someone who needs more guidance and direction when they are just starting out, these factors can often be the difference in ensuring that the business is successful.

There are numerous businesses you can start from home. We are going to highlight three home-based businesses that other entrepreneurs have done well with in recent years.

Accommodation Business

Accommodation Business The first two businesses are accommodation/travel related because they require a low level of skill and relatively small investment to get started. On the flip side, there is generally more work required to steer the business to profitability. The first business to look at is a Hostel/Bed and Breakfast. You can charge between $50-100/night for a room, and this doubles or triples if you live in an area with limited accommodation. You can also make more money by renting equipment to visitors or offering specials like excursions, animal-related activities or something like shooting sessions. Even people in rural areas can make money this way because Airbnb makes it easy to popularize your farm or ranch. You no longer have to spend tens of thousands of dollars to start a hotel when you can clean up a few rooms in your house and start renting them out. The only downside is that there might be extra taxes or requirements based on your state laws, but this is still one of the easiest businesses to start from home.

If you have a lot of land, you can build a separate house to accommodate tourists on your property – there are many popular ranches using this model that are booked year-round and offer activities for traveling families. If you can create a unique experience for visitors, they will be willing to pay for it. All you’d have to do for marketing is create a brochure that showcases what you have to offer, get a GoPro/drone to shoot promo videos, and spend a few thousand dollars on YouTube/Facebook advertising to engage people in your state. This is a fairly straightforward business model that requires a minimal investment, and the only work you have to do is replace some sheets/clean up after guests when they leave. It’s also a great family business because it allows you to spend time with the family and you don’t have to create products – you only have to make your mini-hotel popular.

Tour Guide Business

Tour Guide BusinessThis is a unique business for young adults who don’t have their own property/accommodation space but enjoy spending time outdoors and know how to get around their city better than most. If you live in a city like D.C., you literally have access to millions of tourists every year. And if you can only get a few hundred of them to pay for a tour, you can make a full-time living showing people important sights in your city. For marketing, all you need to do is record a segment of your tour and use it as a promo. You can make your tours different by showing unique aspects of everyday life in your city and not just explaining tourist attractions – people are intrigued by details like that.

You can also offer unique tours by showing where the elites live – this is not just for Hollywood. For instance, you could create a tour of areas where the political elites of D.C. live. You could offer unique Wall Street tours in Manhattan or art tours in Williamsburg. Create a unique tour of your area, set up a website where you explain the tour/fees, and start promoting it to travelers. There is a separate section on Facebook advertising that can market to people who recently landed in your city. This is very practical for tour guides or people selling tickets to tourists because you can market to them while they’re traveling.

Handyman Business

Handyman BusinessIf you have a certain skill as a builder or you just enjoy doing home projects and you’re good at it, you can start a business from home as a handyman. For instance, if you’re a certified electrician or plumber who is employed in a full-time job, you could also start your home-based handyman business and service homes in your community.

This is similar to consulting in that you can charge clients by the hour and you have a marketable skill that is always in demand. If you start from scratch, you only have to spend a little bit of money to set up a website and make your business known through sites like Craigslist and Takl. If you have a little more money to invest, you may choose to affiliate with a handyman franchise brand. By going the franchise route, you can accelerate your growth and build a profitable business in a relatively short period of time.

 

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