Assess your financing needs. While starting a business from home can be more affordable than starting a traditional business, you will still need money to get started. As you form your home business idea, think about how much money you will need to buy inventory, buy your production equipment, or cover any other initial costs. If you don't have a lot in savings, you can also get a business loan to get started, but this would mean qualifying for and then subsequently being responsible for a loan, which can be difficult for a new business. Consider your financing options carefully as you set up your home business.
If getting money from friends or family is not an option, consider applying for a loan from peer-to-peer (P2P) websites. P2P platforms like the LendingClub match borrowers with investors. They offer small business loans from $5,000 to $300,000 and allow you to pay them back over one to five years with a typical APR of 9.77% to 35.71%. This gives you quick access to funds, while investors enjoy solid returns over time.
Beta is when you’re testing out your product or service with the goal of receiving feedback. Find potential beta customers at trade shows, festivals, farmers markets, and other types of events where you can sell your product or service to a relatively small group of people. Consider offering discounts in exchange for customer feedback. While you can make some money with the beta, don’t let it distract you from your goal of testing and improving your idea.
The key to success in this business is being very disciplined in buying. Limit your car buying to popular models that you can turn over quickly, models that you have a strong understanding of current local pricing on, cars that you can buy at a significant discount to the price you believe you can fairly sell them for, and cars that are highly unlikely to need major work.
Great ideas! I’ve been thinking about starting a home-based business for years but I just never stopped long enough to actually start and I didn’t know what kind of business to pursue. Now I’m ready to get started and you gave me some really good ideas. I really appreciate the links to more information on how to get started in several of these business opportunities. I will definitely look into them.
One of the most important keys to marketing is clearly communicating what the service, value or product that your new business provides is. Try to keep away from long descriptions and lengthy explanations when sharing what your business does with others. Keep your message very simple, direct and to the point. Tell the customer what problems you can solve, services you will provide and how your products bring great value to their lives without adding too much jargon that would confuse your would-be customers.
A Rollover for Business Startups (ROBS) lets you invest retirement funds in a new business without paying taxes or early withdrawal penalties. A ROBS is not a loan or withdrawal; instead, it allows you to tap into your retirement funds early. A ROBS is a great way to use your 401(k) to start a new business, particularly if you have more than $50,000 in qualifying retirement savings. There are no monthly payments and repayment is not required.
I have a friend that is the city manager of a town of about 25,000 where his main task is processing requests for building permits. Actually a volunteer-type job, no salary. But he makes a bunch of contacts every day, and his address book is huge. So he is busy all year except the Holidays. To fill in this time he started a Christmas tree lighting service (houses, lawn ornaments, etc.). In this 3-month period he makes enough to keep him going the rest of the year.
Instead, you’ll be following a proven strategy for maximizing views of multiple videos on a regular basis. You’ll be creating useful content—something engaging that people want to watch. And it works in many, many different niches. It could be a how-to video or a talking-head video on a topic of interest for people in your niche—the sky is the limit.
Good ideas, I like numbers 2, 3, and 6 personally. I think in addition to persistence and determination, creating a successful home-based business also takes courage. It can be a scary proposition to quit your day job to go it alone. I always admire people who make this move, and I think that in general they are all the more happy for it. There is not doubt, though, that you have to go for it 100% in order to make it happen!
The easiest and cheapest option is the sole proprietorship, but to best protect your business, while still being affordable is the limited liability company. You'll want to research issues surrounding all forms of business structure now, because your decision will affect your startup costs, as well as your tax situation and your personal liability for the actions and debts of the business. Take advantage of the IRS's website for free tax information on the various legal forms of business organization.
While you can start a home business on budget, it's not likely you'll build a profitable one without incurring some expense. Calculate your startup costs — the amount of money you need to open up shop. It's okay if you don't know specific costs, but you want to get as close as possible, perhaps even over-estimate expenses. Here are common start-up expenses:
With the prevalence of video in social media and marketing, the need for video producers and experts has only grown in recent years. Even if you don’t have prior experience cutting and editing video, this is an online-based home business idea that you can easily learn and teach yourself with classes, tutorials, and general guidance from the online video community.
Another option to fund your home business is to use personal and business credit cards. Many offer 0% APR for new clients while providing rewards or cash-back programs. On average, credit cards charge a 16% annual interest rate plus fees of about $50 to $100 annually. With credit cards, you don’t have to draw from your personal savings to fund your business.