A lot of the biggest companies of the world today started out as a home-based business, including Ford Motor, Mary Kay Cosmetics, Hershey’s Chocolates, and Apple! And more than half of businesses in the world are home-based. From the point of view of Brisbane bookkeepers, there are a lot of good reasons for starting your business at home.
- 1. Saving on rent money – Instead of putting some of your limited resources to renting out space, you can add it to your working capital.
- 2. Saving on time – Most entrepreneurs want, or need to spend a lot of time working during the startup phase of the business. Working from home is less travel time.
- 3. Save up on utilities and services – You already have a phone, internet, electricity, water, gas, and other basic utilities. No need to allot precious capital to service connections.
Things to consider when starting a Home-based Business
Not all businesses are ideal for home-based operations. Likewise, your home might not be a good choice for your business. Before you go ahead and set up your business, consider the following;
- Zoning Restrictions – Check the city office for the legal and zoning restrictions of your present address. Some residential areas do not allow putting up business of any form while others would welcome a boutique.
- Needed business operations – How much space do you need for storage and production? Will the production cause noise or emit fumes or smell? These types of businesses will need to be put up in an industrial environment. Office based business are ideal for a home-based model. In fact, many bookkeepers in Brisbane are working from home.
- The home front – Who are you living with? Do you have small children who might be negatively affected by the operations? Will it affect your overall work and life balance?
Starting Up your Home-Based Business
If all is good and ready for your enterprise, it is time to start the business. From a legal perspective, a home-based business is like any other business. You might be starting smaller and in a different setup from other established companies, you are still starting out an enterprise and should go through all the legal process. Here are the basic steps in setting up your home-based business;
- Define your business model – This step is essential to all businesses, regardless of how they are starting up. A well-defined business model will give you a better perspective of how you will run the company. Include in your planning business components like logistics, marketing, financing, pricing, and your own time management details.
- Make it Legal – Give your business a legal identity. This is to protect your business. Register your business name, and any patents or trademarks. And get all the needed permits and licenses.
- Set up insurance and taxation for your business – Get the help of an accountant or a bookkeeping service in Brisbane to help you draw your financial statements and set up business taxation.