Setting up a new business is serious work. There’s a lot of paperwork to think about but there’s also your home office to consider. When just starting out, you’ll want to set up your home-based business as cheaply as possible, without cutting corners. Here’s how to do it.
Set up your office
The first thing you’ll need to do (yes even before the paperwork starts) is to set up your home office. You’ll need to think about office equipment, communications systems, computing and furniture as well as anything else you’ll need. Many people choose to use a spare bedroom or small outbuilding to setup their home office. Once you have the space, you have the means. To do everything within a tight budget, the first thing you’ll want to buy is your telecommunications and computing systems. For many, even a laptop with good camera and speaker/microphone setup is enough to get going. It all depends on the type of business you’re going to be running from home. This is where you should be spending the bulk of your money.
Forget about fancy equipment and furniture for now. That can come later as you bring business success. For now, focus on your needs rather than your wants. To keep things cheap, you can buy your home office furniture used instead of new. Not only does this mean creating a home office at the fraction of the cost of purchasing all new equipment and furniture but anything used can still be claimed as a tax deduction.
Set up your finances
Now that you have a home office, and somewhere to actually sit down and do it, you’ll want to start on the paperwork. Obviously, you’ll want to setup separate bank accounts to separate your personal income from your business funds. This means that record keeping is going to be much easier, as will your tax when it comes time to doing it for the first time as a business owner. Explore what business services your bank offers and shop around, picking the most competitive services. You do not need to keep your business and personal accounts at the same bank. One may be better for one than the other.
Get professional advice
When embarking on any new business, especially a small home based business you’ll be running yourself, it’s important to get professional advice. Get some support by talking to experienced business advisors that can help you on your way to creating a successful small home-based business. Government advisory services can be a great way to find business guidance as can accountants and bank managers. You’ll also want to start networking, not only to expand your business and gain new clients but also just to receive advice from those that have gone before you.
Consider joining a business association or attending events related to your business. Not only do you want to listen to expert advisors but also ensure you listen to the advice of your customers. One of the most important steps in setting up a home-based business is to listen to your initial customers when planning your first product or service. Ask your customers and potential customers questions regarding your new business venture and what they’d like through email, online forums, through social media or on your blog or website.