In recent studies, it was found that home-based businesses account for half of all registered companies. So starting a home business is something that more and more of us are doing. Doing so can be an effective way to work from home, work for yourself, and help you to reduce things like childcare costs, commuting costs, and could help you to have a better work and life balance.
But although there are around half of the companies registered that are home-based, how many of them are successful and earning money? Here are some of the things that you need to think about when it comes to building a business from home, in order to make it a success.
As you begin to start your journey to working from home, then you need to have the motivation to start your own business. But in order to have that motivation, you will need to make sure that you have an idea that you are excited about and one that you will enjoy doing. Not only that but an idea that will be able to make money to cover your costs. There are several things that you will need to consider in order to come up with a business idea that can become an income-generating home business.
To start off with, you need to canvass the need for what you are planning. If you have created an idea, then you need to see if there is a need for it. There is no point in creating a childcare business where you live, for example, if there is a really saturated market for childcare where you are or just a low-income area where there is a lack of need. So it can be a good idea to look up a guide to user research to give you some ideas about what you should be doing to garner interest. Things like surveys can be a good idea, and this can be true if you already do something from home and want to see if there is much interest to offer more or extend your range. Definitely worth doing before you start to invest money.
Assess Your Competencies
If you are stuck for an idea, but working from home is the goal for you, then it is a good idea to think about your business and focus on those things that you excel in, have experience in, as well as what you enjoy. If you have previous work experience, then that experience can be a good indicator of where your competencies are. To start off with, think about the instances where you have added value to something or really exceeded expectations, and then make a list of those skills that you have. For example, if you are someone with experience in retail or store management, then you are likely to have many of the skills that include things like managing a team well, customer service, sales, tracking inventory, record keeping, communication skills, and being organized.
If you are still unsure, then think about the hobbies that you enjoy. Are there things that you love to do that are separate from a previous career? Perhaps you love crafting and want to create custom pieces and sell what you make? Perhaps you have a passion for fitness and want to take a career in fitness to the next stage and run training classes from your home? Once you know the skills that you have and the passion you have, you can plan a business around it, as well as any training or other qualifications that you have. Using this kind of strategy will help you to think of a unique way to make an income from home, especially when you make the most of your main competencies.
Define Your Target Market
Once you have an idea of what you want to make money from home, then you need to identify who your target market is. That can help you to market your business, pitch your pricing, and many other things, so it is a must to have an idea of what you want to do. The target market is the group of the population that is the most likely to buy what sells or be interested in your services. Being able to identify this early on can also help you to see if there is enough demand for your business.
To be able to define the market for your business, then it could be a good idea to think about taking a funnel approach to what you are doing, where you apply certain filters in order to be able to narrow down your market. For example, if there is someone with creative talents are thinking about a graphic design business from home, then you can funnel down who your ideal clients are by thinking about the following:
- Who are the people that are the most likely to need your business? Would be they individuals or businesses?
- What would be the age range of the people needing your business? Are they likely to be in their thirties or older, especially if you are thinking of the small business design market.
- What is the income of these people, or would they be working with a business’ budget? This can give you an idea of what kind of money you would be able to charge, as well as taking into consideration the kind of work that you’d be taking on and how long it would take you.
The answers to these questions can help you to identify the people that will be in most use of your business, and as a result, can help as you plan your business out.
Look Into Competitors
If you are fairly new to working for yourself, then you will want to make sure that you are offering competitive prices for what you do, or you could not get work, or perhaps not sell things if they aren’t priced well. Nearly all businesses are going to have direct competitors. And as an entrepreneur, you need to know the companies that are operating in the same market. This can help you to make sure that you stand out compared to them, and can differentiate your business from theirs.