60% of new business owners will launch their ventures from their homes. Now that’s just a United States statistic but here in Australia, you can guess the numbers aren’t too different, especially with recent transitions to be more digital, reduce the cost of physical locations and allow for remote working.

So to make things easier we’ve put together a list of thing we think are important to think about when starting a business from home. Here are seven steps to get you started if you’ve been considering launching a small company from home.

Create a business concept

Finding a profitable company concept is the first step in beginning a small business. The ideal scenario is that you’ll create a company endeavour that appeals to you and fills a gap in the market.

Finding a problem that annoys you is a fantastic method to do this. Is there a problem you keep running into that you wish someone would fix? That may be your next business endeavour.

You do not, however, have to create anything entirely new. Consider the companies that are already in existence and consider how you could enhance what they are presently doing. Do you see any market gaps that you could bridge?

Choose what you want to sell

There are many factors to consider when beginning a business, but deciding what you’ll sell is where you should begin. Your capacity to offer goods or services to clients is crucial to the success of your firm.

Make a list of potential goods or services you may provide. Following that, think about the following issues:

  • Does this good or service have a market?
  • How would this help my clients?
  • Would I buy this product or use this service?
  • How much could I feasibly demand?
  • Is the demand high

Plan your business

Then draft a strategy. A business plan will provide you clarity as you get going and will be quite helpful if you decide to later seek for small business finance.

The majority of business strategies either involve a typical company or a lean startup. In a conventional business strategy, you’ll go into considerable depth. Most lenders and investors need these lengthy plans, which might be several dozen pages long.

A lean startup business plan, in contrast, concentrates on a high-level overview of the company. You simply need to write a one-page summary of the key elements of your company. Although you can make this lot more quickly, you might need additional information in the future.

Choose a structure for your company

Making the right structural choice is crucial to running your firm. A sole trader can be the best option for you if you want to launch your business swiftly and with the least amount of fuss imaginable.

With this kind of structure, you have total authority over every decision because there is no executive board or partner to answer to. But keep in mind that there is no legal distinction between you and the company; you are liable for any liabilities and legal actions that the company faces.

A corporation, on the other hand, offers greater freedom and establishes a legal distinction between you and the firm; nevertheless, there is additional paperwork to complete and your business must be registered with the state.

Open a business bank account

You should open a business bank account once your legal business structure has been formed. This is crucial since it distinguishes between your personal and company funds.

Partnering with a neighbourhood bank will allow you to build a personal rapport. Smaller banks are sometimes regarded as being more accommodating and fast to act when an issue arises.

Make your home office

Establishing a dedicated home office is a fantastic idea if you intend to work from home. It might be a spare room in your house or simply a designated area of your bedroom.

However, you should pick a location that will provide you with some kind of seclusion. Also, pay attention to the backdrop, particularly if you have to make frequent client calls.

Analyze your business concept

It’s time to put your company concept to the test, which calls for you to concentrate on generating some revenue. After all, profitability is the standard by which successful firms are judged.

There is no ideal strategy for starting a firm, and you may make lots of mistakes at first. Partnering with more established companies might help you gain exposure and expand more rapidly.

Whatever approach you choose to use, be ready to change it as you go. The most crucial factor is that you are developing a solution that is pertinent and meets the demand of your clients.