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8 Basic Things to Start a Small Business at Home

Vlad Kovalskiy
October 12, 2021
Last updated: January 17, 2024

You’ve probably been toying with the idea to start a small business at home for some time now and haven’t done anything to bring the idea to fruition yet but feel like the time is now. If you’re looking for some sage advice about starting your own small business at home, you’ve come to the right place.

It’s an exciting and scary venture and there may be times when you don’t know where or how to begin. You’re taking a big step towards making your dreams come true and we want to help you get there. In this article, we outline the 8 basic things to start a small business at home.

 

Before you make it happen…

 

Keep in mind that starting a business at home means you will have to do a lot of different things, sometimes even all at once. Remember, you’re not only an owner of a home based business. You’re also a part of a family unit with chores and responsibilities to carry out on a daily basis.

It will be best for you in the long run to keep this in mind. It’s going to be fun but bound to be tiring and challenging sometimes. To keep yourself from being overwhelmed, be sure you make peace with this reality before you take the first step to building your small business. Commit yourself to balancing your time, attention and energy between your home and business at all times so you can be sure neither will suffer neglect down the road.

 

1. Research, research, research!

 

It always pays to do a little reconnaissance before starting your small business at home. Do your due diligence and conduct a bit of market research so you can gauge the demand, scope and potential demographic for your business. Here are a few questions to ask:

  1. How big is your area of support? (In terms of blocks? Citywide, perhaps?)
  2. Are there products or businesses similar to yours in the area?
  3. Who are your top competitors?
  4. What will be your potential market share?
  5. What can you improve on the AFIs (areas for improvement) of your potential competitors? (In terms of services and products)

 Talk to your neighbors, family and friends and take note of everyone’s input. You can always winnow them down to the most useful later on. Take a walk or drive around the vicinity of your home to survey the other businesses already in existence. Everything you collect will be very useful in the next step.


 



2. Create a business plan

 

This doesn’t have to be something that’s filled with highfalutin business words, graphs and data. A business plan is your business’ roadmap to success, which you will need to always refer to so the content, composition and presentation should be user-friendly for you and easy to understand. Everything begins with small business ideas from home but making the idea a reality includes a business plan that’s easy to follow. 

A good, comprehensive business plan contains the following items:

  1. Executive Summary
  2. Company Summary
  3. Products
  4. Market Analysis Summary
  5. Strategy and Implementation Summary
  6. Management Summary
  7. Financial Plan
  8. Appendix

 

3. Brand a clever business scheme

 

If coming up with your business plan is the serious part of the planning stage, the branding phase can be the fun one. This is where you put together your business presentation – your color palette, packaging scheme, tagline, and more. Look at your favorite brands and how they go about things. What is it that you find impressive? What would you like to emulate? 

Branding can be as personal as you want it to be but remember to keep it professional. Make sure that everything in your branding correlates with the mission and vision stated in your business plan. Be clever, have fun and innovative but be sure everything comes out presentable, clean and aesthetically pleasing.

 

4. Fund the fun

 

You’ll get the general idea of how much you need from your business plan. If you have a nest egg or a separate savings for your small business at home that you can use. Take into account everything that you need from packaging, office supplies and ingredients or materials for your product. Set aside a small sum for incidentals as well. Things are bound to be a little tricky especially when you’re first starting out. 

You might also think about getting a bank loan or borrowing money from your parents. Depending on the size of your homebased business venture, it’s best to avoid this. Use your money as much as you can. You don’t need the extra burden of having to pay for a loan on top of starting your business from scratch.

 

5. Market the network, network the market

 

Small business opportunities from home call means breaking out of your shell. If you have a vision of success for your business, you need to be prepared to get out there and network with your potential customers and market your products or services. Put together a sampler package of your products or a hard copy pamphlet that you can distribute to everyone in the vicinity. 

If you’re shy or an introvert, online may be the way to go. You’ll be amazed at how far social media can take you and your business. A business Facebook or Instagram page can do wonders. Etsy is also a thriving hub of artisans, creatives and innovators, most of them homebased so you won’t be a fish out of water. You’ll also have the added advantage of meeting other business owners that you can network and swap business ideas with.

 

6. Be legally sound

 

It’s better to be safe than to find yourself tangled up in some impossible legal knot over your small business. You don’t necessarily need to hire a lawyer but it would be good to get some legal advice and guidance if you want to make your small business ideas from home into a reality. Look into everything that’s required of you, legally, like registering your business and getting a tax ID. 

Find out about permits and other authorizations you may need as well. Some homeowners’ associations require permits for certain businesses in homes especially if you’re entertaining customers within the premises or opening a physical store.

 

7. Stay real 


It’s very easy to get caught up in the flurry of activity, fun and excitement of starting a small business at home but it’s important to keep your feet on the ground and be realistic. Make sure that you always balance your passion for your business with common sense and level headedness. 

Not everyone will be supportive of your business venture. Some of your neighbors may not purchase from you. The business itself might not be too successful. A lot of things may happen down the line that might affect the stability of your business and you need to be ready for them. If you’ve planned for sunny days, make sure that you plan for rainy days as well, so to speak.

 

8. Protect the capital and save

 

As soon as the cash flow begins, you might find it hard to stop yourself from splurging but you absolutely have to. Never forget to separate your capital from your profit and what you should set aside. Track all of your expenditures and keep your finances separate. If you have a day job and a small business at home, be sure to separate your incomes from both. 

The aim for your business should not only be to simply create one but to nurture and grow it as well. Learn how you can cleverly use your money for home and business essentials while being able to walk away with profit and enough extra cash for your savings. Being able to comfortably do all of these is your measure of success.

 

BONUS TIP: Gather the tools!

 

You can only be as strong, as clever and as successful when you have great tools that you can use to start your small business at home. These tools can be those that you use to create things like a paintbrush or a potter’s wheel but they can also be online tools like apps and software to help you be a better business owner.

Bitrix24 has everything you need to make your small business at home a big success. From tasks and project management to communications, email automation, social media marketing and messaging, and even telephony, you’ll find solutions in Bitrix24. And the best bit about Bitrix24? You can sign up today and start using it for free!

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