What an Executive Needs to Know About Starting a Successful Home-Based Business

There are times in your career when you know you’re ready for a transition, but you aren’t sure what that should be... or how to make it happen. One option you may have considered is to stop waiting for the next opportunity and create it yourself by becoming an entrepreneur or independent management consultant. In many cases, the easiest and most immediate path to launching your own business is to start out home-based, possibly with an eye to opening office, warehouse, and/or manufacturing space at a later date. This is something I find more of my clients considering in the current COVID employment market, as it provides an opportunity to monetize what they know with little up front investment.

Of course, considering entrepreneurship leads to more questions, like what kind of business you should start and what steps are involved. This article doesn’t cover all the answers, but it does provide some tips for what you need to know most about taking that step and starting your own home-based business.

Know What It’s Really Like Working from Home

The first question to ask yourself is whether you’re prepared to work from home, and more importantly, whether you’re ready to run a business. Many new entrepreneurs assume that working from home gives you the ultimate freedom. It’s true that you can run most home-based businesses on your own schedule, and as Business Insider explains, ditching the monotonous routine of a traditional job is one of the perks that come with being your own boss.

At the same time, remember that you’re the one responsible for keeping yourself motivated, which can be more challenging when your office is in your home. This challenge isn’t a deal-breaker - you just need some strategies for working from home effectively. To maximize productivity as a work-from-home entrepreneur, be sure to set a consistent schedule. It’s also important to create a designated work area. If you have a partner or kids at home, choose a spot that’s out of the way so you aren’t bombarded by distractions, and be sure to set ground rules with family members. Your productivity may suffer if you don’t set boundaries.

If you discover that you occasionally need some additional space to concentrate on your work, many cities offer co-working spaces at affordable rates. Not only will these areas give you a chance to knuckle down and focus on your work, but you may also be able to network with other like-minded individuals who can help you make your business a success. And last but not least, co-working spaces can allow you to meet with clients without having them visit your home.

Know What It Takes to Get Started

The first step to getting started is the most obvious one, but it may not be the easiest: deciding on a business model. As the blog Young Upstarts explains, the most important thing is to find a business idea that fits your interests. If you love your field but want more flexibility, one option particularly for experienced executives is to become a consultant. Consulting allows you to use the expertise you already have in a whole new way, plus you have more income potential than working for someone else.

Once you hone in on the type of business you want to start, familiarize yourself with the requirements involved, including registering your business and choosing a legal structure. There are several options, but for many home-based business models, setting up an LLC (limited liability company) is the best option. Forming an LLC is pretty straightforward, and operating as an LLC gives you plenty of flexibility, along with the tax advantages and legal protection. Each state has its own requirements for forming an LLC, so make sure you’re aware of how the process works in your state.

Know How to Get Your Business Off the Ground

With the legal paperwork done and your business plan in hand, you’ll be ready to start putting that plan into action. Any home-based business will require some basic equipment like office space, a computer, and other tech necessities. You’ll also need to invest in a reliable and fast internet connection, especially if you plan to take part in video conference calls. The last thing you want is for your connection to bottom out at the worst possible moment! Once you have the right equipment, what you need most to actually get off the ground is your first clients or customers.

Marketing your business online is a good starting point, but a large part of getting your first clients comes from good old-fashioned networking. Start with who you know, then you can branch out into new territory to find clients. A well-honed LinkedIn profile is a key resource you’ll want to leverage actively. Once you’ve made a connection, you’ll need to prove that you have what it takes, and this is where a Creative Keystrokes Executive Resume and LinkedIn Profile can make all the difference in landing that first client.

The great thing about making the transition to entrepreneurship mid-to-late career is that you already have a lot going for you. You have the experience, contacts, and the skills needed to do the job. Now all you need is to take the next step and turn your experience into success as an independent business owner.

Guest Post Courtesy of Amy Collett at Bizwell.org. Photo credit: Rawpixel